What Does Google Want With Weak AOL?
I'm sorry, but Google buying AOL would be a huge waste of money. First off AOL has nothing that Google doesn't have, and buying it to compete with Microsoft would be stupid. The analysts still don't get it, Google isn't afraid of Microsoft, or anyone for that matter, nor should they be. They are the 500lb gorilla of search. You could take MSN search, multiply it by two, add AOL search, then add the traffic of all the other search engines sans Yahoo and it wouldn't add up to half of Google's search traffic.
The reason Time Warner is of course considering selling AOL to Microsoft is because it is lame. There are only two good things that have come out of AOL in the last decade. The first is AIM, the second is Winamp which does indeed whip the llama's ass. Still, the success of Winamp has not lead to a decent music service, and AIM has not lead to anything except a great platform with an annoying client. They just launched an email service for non-AOL members a little over 6 months ago. They are cash rich and bloated.
For that matter, two sagging fat companies like Microsoft and AOL does not a Google killer make. Why can't they see this? If they read more Sun Tsu – The Art of War, which should still be required reading for any executive in corporate America. Everyone needs to write off broad-based search. Google has won, there is no catching them. Instead they should focus on what they do that Google doesn't in an effort to contain them to search. By trying to follow them in whatever they do, they are following their plan. That is one of the over-riding concepts to the Art of War, if your enemy is larger and more powerful than you are, you have to annoy them into making a mistake. Having them follow you all over creation will weaken them, and allow you to destroy them at home. In this instance Microsoft will follow Google on everything they try to do, while taking their focus more and more off their operating system only for Google to release the Goffice and the GoogleOS. Effectively destroying Microsoft. What Microsoft should do is focus on making Office more available on the web, meaning web based Word, Excel, and PowerPoint for enterprises. They should be focusing on making Vista more than Windows XP service pack 3, it should be robust and provide new and amazing features.
AOL should focus on getting its large base of rural customers onto broadband even if it means losing money. That is the only way to push in the TV over IP that the TimeWarner partnership was supposed to bring. The fact that the majority of their users are on dial-up should signal a problem for them, in addition to the growing impatience of their parent corporation. If they weren't so fat, they would wake up and realize they need to do something right now other than looking for another sugar daddy to keep them providing the same stale services they have been serving up for the past decade.
Other than Yahoo, no one has been able to change their business model to fit Google. Obviously both of them have been reading the abovementioned book. They are playing each other perfectly. Watch that space as the battle between Yahoo and Google will be the future of computing. Short of a miracle of clarity, which Microsoft is capable of, they are going to go the way of IBM. Rich, but not important to the cutting edge of information technology.