Yahoo blames Microsoft for the Windows Phone 7 data usage issue

Looks like Yahoo isn’t really happy about Microsoft opening up and pointing at Yahoo’s Mail as been the culprit of the Windows Phone 7 data usage issue. The Search Eng…err no they are no longer a a search engine (Y! search is powered by Bing..)…the company has now sent a statement claiming that the problem was caused by Microsoft’s implementation of the IMAP protocol even though it has been shown that Windows Phone 7 is making relatively standard calls to the servers and that it’s Yahoo’s IMAP servers themselves who are then sending back unusual replies. Anyway, note that the statement itself has only been sent to one website and that it doesn’t look like the official PR line at all (Yahoo “officially” sent out to bloggers the same statement that MS sent out yesterday).

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Microsoft officially confirms that Yahoo is the cause of the Windows Phone 7 data issue

Surprise, surprise! There’s no Windows Phone 7 data usage bug and Yahoo is the third-party service to blame according to Microsoft who officially confirmed what I have been saying all along. So, what else is there to say? Well, maybe folks should do some research before posting “Breaking News” stories about deal breaking Windows Phone 7 OS bugs. The Yahoo Mail data issue has been reported several times in public forums ever since the platform was launched last year….Microsoft is also going to fix a totally unrelated Exchange EAS issue. Check out Microsoft’s full statement after the break:

Continue reading Microsoft officially confirms that Yahoo is the cause of the Windows Phone 7 data issue →

Excessive Windows phone 7 Data Usage: what is the cause?

If you have been following me on twitter you probably already know by now that I believe that’s there’s no “Data Usage” bug in Windows Phone 7 that’s why I decided not to post about it when every other website went crazy over this story but yesterday’s official statement from Microsoft confirms my thoughts by claiming that this strange behavior apparently affecting only a handful of users is caused by a third-party service:

We have determined that a third-party solution commonly accessed from Windows Phones is configured in a manner that potentially causes larger than expected data downloads. We are in contact with the third party to assist them in making the necessary fixes, and are also pursuing potential workarounds to address the configuration issue in case those are needed. At this point in our investigation, we believe this is responsible for most of the reported incidents.

We are investigating additional potential root causes for the remainder of the reports.

A small (low single-digit) percentage of Windows Phone customers have reported being affected.

We are continuing to investigate this issue and will update with additional information and guidance as it becomes available.

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Yahoo and Nokia announce Worldwide mail, maps and search deal

Too little too late? I frankly don’t really know what to think of this deal right now especially when you consider Yahoo‘s current position in the mapping and search business so I’ll give you the full press release and let you judge:

Nokia and Yahoo! to bring integrated web services to millions of consumers around the world May 24, 2010

Global strategic alliance enables industry leaders to leverage strengths in e-mail, instant messaging, maps and navigation across PC and mobile devices
New York, NY, USA – Today, Yahoo! and Nokia announced a worldwide strategic alliance to extend the reach of their industry leading online services and offer people rich experiences that keep them connected to their world and the world around them.

Building on more than five years of collaboration, Nokia and Yahoo! ® will leverage each others’ strengths in e-mail, instant messaging and maps and navigation services, to provide consumers with access to world-class experiences on both PC and mobile devices.

As part of the alliance:
- Nokia will be the exclusive, global provider of Yahoo!’s maps and navigation services, integrating Ovi Maps across Yahoo! properties, branded as “powered by Ovi.”
- Yahoo! will become the exclusive, global provider of Nokia’s Ovi Mail and Ovi Chat services branded as “Ovi Mail / Ovi Chat powered by Yahoo!”
- Nokia and Yahoo! plan to work on ID federation between their services, beginning by making it easy for people to use their Ovi user IDs across select Yahoo! properties to easily access the online content and services they need.

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Yahoo and Nokia poised to unveil “Project Nike” on Monday

Today Yahoo has sent out an invitation for a press event scheduled on Monday in New York that reads:

Please join Yahoo! CEO Carol Bartz for an exciting announcement about providing global consumers with rich online and mobile experiences, and bringing forward a new era in keeping consumers connected.

According to BoomTown’s sources this will the the announced of a deal to build Yahoo’s mail, search (err Bing?) and other services into some of Nokia‘s handsets. The deal is apparently named “Project Nike” and has been in the work for a while now (even before the Microsoft / Yahoo search deal). I will be interesting to see if this deal affects Nokia devices sold worldwide or only in the US. If it’s the later then it unfortunately wouldn’t mean much fro Yahoo in light of Nokia’s current marketshare in North America and given that Yahoo search is soon going to be powered by Bing the Redmond software giant will probably in some way be involved.

Source: Yahoo via BoomTown

Bing Mobile to replace Yahoo Mobile ?

Following the announced last week, Yahoo just filed with the SEC with more details about the search deal with Microsoft. One of the interesting standout is that Yahoo has the option to use Bing Maps & Bing Mobile as the technology provider for these services. PaidContent reports that Yahoo has already agreed to use Bing Mobile to power Yahoo Mobile search.
Will Bing Mobile replace Yahoo Mobile in the future?

Source: SEC 8-K Form

Microsoft and Yahoo announce 10 year Search & Advertising deal

That’s it, it’s finally done. Microsoft and Yahoo just issued a press release announcing the long rumored search and ad deal. They’ve also set up a dedicated website One big part of the deal that was not known before is the fact that Microsoft has access to all of Yahoo’s search technology for the next 10 years. This can only help improve Bing in a big way and also means that Yahoo is definitely out of the search game. Regarding the advertising part of the deal, Microsoft’s AdCenter will be the platform used to serve ads. So now we have Google AdWords/Adsense vs Microsoft AdCenter/PubCenter.
Here is the press release:

Carol Bartz & Steve Ballmer credit: Microsoft

Carol Bartz & Steve Ballmer credit: Microsoft

Microsoft, Yahoo! Change Search Landscape
Global Deal Creates Better Choice for Consumers and Advertisers

SUNNYVALE, CA and REDMOND, WA — 29 July, 2009 — Yahoo! and Microsoft announced an agreement that will improve the Web search experience for users and advertisers, and deliver sustained innovation to the industry. In simple terms, Microsoft will now power Yahoo! search while Yahoo! will become the exclusive worldwide relationship sales force for both companies’ premium search advertisers.

For Web users and advertisers, this deal will accelerate the pace and breadth of innovation by combining both companies’ complementary strengths and search platforms into a market competitor with the scale to fuel sustained development in search and search advertising. Users will find what they care about faster and with more personal relevance. Microsoft’s competitive search platforms will lead to more value for advertisers, better results for web publishers, and increased innovation and efficiency across the Internet.

Under this agreement, Yahoo! will focus on its core business of providing consumers with great experiences with the world’s favorite online destinations and Web products.

“This agreement comes with boatloads of value for Yahoo!, our users, and the industry. And I believe it establishes the foundation for a new era of Internet innovation and development,” said Yahoo! CEO Carol Bartz. “Users will continue to experience search as a vital part of their Yahoo! experiences and will enjoy increased innovation thanks to the scale and resources this deal provides. Advertisers will also benefit from scale and enjoy greater ease of use and efficiencies working with a single platform and sales team for premium advertisers. Finally, this deal will help us increase our investments in priority areas in winning audience properties, display advertising capabilities, and mobile experiences.”

Providing a viable alternative to advertisers, this deal will combine Yahoo! and Microsoft search marketplaces so that advertisers no longer have to rely on one company that dominates more than 70 percent of all search. With the addition of Yahoo!’s search volume, Microsoft will achieve the size and scale required to unleash competition and innovation in the market, for consumers as well as advertisers.

Microsoft CEO Steve Ballmer said the agreement will provide Microsoft’s search engine, Bing, the scale necessary to more effectively compete, attracting more users and advertisers, which in turn will lead to more relevant ads and search results.

“Through this agreement with Yahoo!, we will create more innovation in search, better value for advertisers, and real consumer choice in a market currently dominated by a single company,” said Ballmer. “Success in search requires both innovation and scale. With our new Bing search platform, we’ve created breakthrough innovation and features. This agreement with Yahoo! will provide the scale we need to deliver even more rapid advances in relevancy and usefulness. Microsoft and Yahoo! know there’s so much more that search could be. This agreement gives us the scale and resources to create the future of search.”

“This deal fits the long-term strategic direction of Yahoo! to remain the world’s leading online media company and Carol Bartz has the full and unanimous support of the Yahoo! Board behind this deal,” said Roy Bostock, chairman, Yahoo! Inc. “This is a significant opportunity for us. Microsoft is an industry innovator in search, and it is a great opportunity for us to focus our investments in other areas critical to our future.”

The key terms of the agreement are as follows:

•The term of the agreement is 10 years;

•Microsoft will acquire an exclusive 10 year license to Yahoo!’s core search technologies, and Microsoft will have the ability to integrate Yahoo! search technologies into its existing web search platforms;

•Microsoft’s Bing will be the exclusive algorithmic search and paid search platform for Yahoo! sites. Yahoo! will continue to use its technology and data in other areas of its business such as enhancing display advertising technology.

•Yahoo! will become the exclusive worldwide relationship sales force for both companies’ premium search advertisers. Self-serve advertising for both companies will be fulfilled by Microsoft’s AdCenter platform, and prices for all search ads will continue to be set by AdCenter’s automated auction process.

•Each company will maintain its own separate display advertising business and sales force.

•Yahoo! will innovate and “own” the user experience on Yahoo! properties, including the user experience for search, even though it will be powered by Microsoft technology.

•Microsoft will compensate Yahoo! through a revenue sharing agreement on traffic generated on Yahoo!’s network of both owned and operated (O&O) and affiliate sites.

?Microsoft will pay traffic acquisition costs (TAC) to Yahoo! at an initial rate of 88% of search revenue generated on Yahoo!’s O&O sites during the first 5 years of the agreement.

?Yahoo! will continue to syndicate its existing search affiliate partnerships.

•Microsoft will guarantee Yahoo!’s O&O revenue per search (RPS) in each country for the first 18 months following initial implementation in that country.

•At full implementation (expected to occur within 24 months following regulatory approval), Yahoo! estimates, based on current levels of revenue and current operating expenses, that this agreement will provide a benefit to annual GAAP operating income of approximately $500 million and capital expenditure savings of approximately $200 million. Yahoo! also estimates that this agreement will provide a benefit to annual operating cash flow of approximately $275 million.

•The agreement protects consumer privacy by limiting the data shared between the companies to the minimum necessary to operate and improve the combined search platform, and restricts the use of search data shared between the companies. The agreement maintains the industry-leading privacy practices that each company follows today.

The agreement does not cover each company’s web properties and products, email, instant messaging, display advertising, or any other aspect of the companies’ businesses. In those areas, the companies will continue to compete vigorously.

The transaction will be subject to regulatory review. The agreement entered into today anticipates that the parties will enter into more detailed definitive agreements prior to closing. Microsoft and Yahoo! expect the agreement to be closely reviewed by the industry and government regulators, and welcome questions. The companies are hopeful that closing can occur in early 2010.

The companies have established a website at to provide consumers, advertisers and publishers with additional information about the benefits of the agreement.

Microsoft – Yahoo Deal has been struck, should be announced in a few hours


Things are heating up in Silicon Valley right about now. Kara Swisher is reporting that her sources told her that Microsoft and Yahoo have finaly struck a Search & Advertising deal and should announce it in the Next few hours. It’s about time!

Multiple sources close to the situation said that the online search and advertising deal between Microsoft and Yahoo has been struck and will be announced within the next 24 hours.

While it is not clear if the actual papers have been inked, sources said negotiations are complete.

It is likely to be the cause of much relief at both companies, since they have been trying–without success–to join together to mount a better offense in the sector against the dominant Google (GOOG).

Stay tuned!

Update: Yahoo to Lead Ad Sales in Microsoft Search Deal

Update 2: Boomtown “Yahoo To Get 110 Percent of Search Revenue in First Two Years of Deal With” Microsoft

Source: BoomTown