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Yahoo Enters Desktop Search Fray

13 December 2004

Popular Web-search company Yahoo (Nasdaq: YHOO - news) will develop and release an entrant into the desktop-search niche, the company says.


Yahoo follows competitors Google and Ask Jeeves (Nasdaq: ASKJ - news) into the field and is positioning itself for a piece of a market in which Microsoft (Nasdaq: MSFT - news) also has announced its intentions.


The decision Yahoo had to make, Yankee Group's Charlene Li told NewsFactor, is whether to take the time to develop an elegant, fully integrated tool, as Google has done, or forge a partnership in order to come to market quickly with a robust desktop tool. It chose the second option and will be deploying technology it has licensed from XI Technologies.


Eyeballs Equal Dollars


Desktop search tools help users find information on their computer's own drives, allowing them to bypass the sometimes-cumbersome tools provided with computer operating systems. Users long have asked for something similar to the easy-to-use Web search engines that they can employ on their own machines.


For the search vendors, the development and distribution of such tools gives them access to that all-important coin of the search realm: eyeballs looking at advertisements.


Having home and office computer users viewing ads every time they hunt for a memo or a baby's picture will be lucrative for whoever nabs the biggest share of the market.


In Yahoo's case, said Li, search will be the "glue" that holds the whole Yahoo service together. The idea is to get users interested in other Yahoo offerings -- such as discussion groups and shopping -- through use of the search application.


Maneuvering Against Microsoft


Google's desktop-search tool is well-integrated with its Web-search features, Li said. And that is the vision Yahoo is pursuing. In the future, it plans to add functions for searching remote corners of Web content, including discussion groups and instant message archives.


But with heavyweight Microsoft coming down the pike with its own desktop-search plans, Yahoo had to act fast, and partnering with XI was a good move, she noted.


"Microsoft and MSN have tremendous resources in terms of understanding how the desktop works," she stressed.

Source: NewsFactor via Yahoo


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