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December 3, 2007 11:17 AM

Microsoft Gives WebFives the High Five



Microsoft's WebFives acquisition should bolster the company's services for sharing digital content and online socializing about it.

Like many other Microsoft acquisitions, there was no splashy announcement. There is simply a notice on WebFives' home page that the social digital media Web site will close at the end of the year. WebFives customers can download its content in the meantime.

The late-November acquisition brings Michael Toutonghi, a former Microsoft distinguished engineer and WebFives CEO, back to his alma mater. Toutonghi founded the company, then called Vizrea Corp., in 2003.

Microsoft SEC filings indicate there were at least 14 acquisitions during the company's 2007 fiscal year, ended on June 30. Acquisitions include aQuantive, ScreenTonic and Tellme Networks. Microsoft's acquisitions page only lists five acquisitions for fiscal 2007 and two since. Microsoft has acquired at least four more companies since July 1.

While on a buying spree, Microsoft tends to be quite frugal and strategic in its acquisitions, which share seven common traits:

  • Companies typically are small
  • Most firms are privately held
  • Purchase prices usually aren't disclosed, but presumably are fair but modest
  • The majority of companies are Microsoft partners
  • Technology is typically incorporated into other Microsoft products
  • The few separate products are made over in Microsoft's image, so to speak
  • Most recent acquisitions are for search, advertising or social networking technologies

Microsoft's $6 billion aQuantive acquisition is atypical for its size, but typical for an eighth attribute nearly all the companies/technologies share in common. Microsoft executives do a build-versus-buy cost analysis related to time to market. When the cost is lower to build or there is no urgency to market, Microsoft will pass on the acquisition, as it did with YouTube. Microsoft chose to build MSN Soapbox rather than spend about a half billion on YouTube. Within six months later, Google snatched up YouTube for $1.6 billion.

WebFives appears to fall somewhere between buying YouTube and building Soapbox. Like YouTube, WebFives is a digital content sharing site, but with more emphasis on social networking. Microsoft's most-recent acquisitions all share some emphasis on social-networking technologies.

[Via: Seattle PI]

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Comments (8)

I-Man :

Adobe and VCSY?

Adobe FAQS:
http://labs.adobe.com/wiki/index.php/Apollo:developerfaq#What_is_the_Adobe_Integrated_Runtime.3F

Q: Does Adobe AIR support mobile devices?

A: Although Adobe AIR 1.0 will not be available on mobile devices, Adobe AIR uses technologies that run on mobile devices.


Odd, isn't it? "Adobe AIR will not be available on mobile devices BUT Adobe AIR uses technologies that run on mobile devices."


VCSY Apollo is a smartcard operating system built on Emily technology. Smartcards are the ultimate mobile devices (well, until we all have chips implanted in our foreheads or our hands, that is).

I-Man :

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_M/threadview?m=tm&bn=12004&tid=1319922&mid=1319922&tof=39&rt=2&frt=1&off=1

It can ALWAYS get worse for Microsoft.

If MSFT decides to continue fighting VCSY in court, they won't gain access to the 7076521 patent with which they can continue the roll-out of Silverlight which was rolled out as 1.0 only one day after MSFT settled with Eolas for the founding video stream automation patented technology.

Without VCSY's 7076521 patent, there is no runtime for Silverlight.

Read the patent and compare. If you see there is nothing to compare, come here and say so. Otherwise, you're wishing and hoping and speculating Microsoft will be able to find some other way to do it.

It's why Adobe Apollo is so strong and Silverlight is squished already. MSFT waits and the market walks away from them to reach another platform.

Neil :

I-Man
Just for info sake ... what about Silverlight 2.0 ?

chips :

With Microsoft's WebFives acquisition. it should be able to bolster the company's services for sharing digital content. Where Microsoft is moving to is to directly compete with other companies, such as Google. Or as Steve Ballmer has said, "the future of Microsoft is online advertising."

When you really think about this statement by Mr. Ballmer, you realize, the reason that M$ is putting so much money into online advertising, the Xbox, and the Zune, is because at some near future point, Windows and MS Office will start declining in both volume and profit. Software like anything else is a commodity. When you can get a better product for less, or free, at some point, the expensive software product will lose traction. Take for example, the recent 2.5 to 3% decline of M$ Operating Systems on desktop computers since the advent of MS Vista. So I would say that Steve Ballmer called it right, when he said the future of Microsoft is in online advertising.

M$ is a company in search of a future product, as it knows that Windows cannot maintain the 95% of the desktop market it once enjoyed. That Windows share is now starting to decline should not amaze anyone. What is amazing, is that Windows lasted for so long, as the king of the desktop Operating Systems.

chips :

Ugly view mars Windows Vista birthday

http://www.regdeveloper.co.uk/2007/11/30/vista_birthday/

Quotes: "Pre-launch, Microsoft claimed Windows Vista would out sell Windows XP, and be running on 400 million PCs 24 months after launch, compared to three years before Windows XP hit even half of that on 210 million.According to latest data from NPD, Microsoft is shipping fewer boxed copies of Windows Vista than it did Windows XP at the same point in the operating systems' lifecycles.

Gartner, meanwhile, has said businesses are actually postponing their move to Windows Vista from the anticipated late 2007 and 2008 dates, to late 2008 going on 2009. One reason will be the absence of the first Service Pack - traditionally, the first Windows service pack is regarded as a first step by those in business IT to installing the latest version of Windows.

That hasn't stopped Microsoft trying to fit the facts to reality. Following the January "mass" launch Microsoft claimed to have sold 20 million Windows Vista licenses in one month. That compared to Windows XP that shipped 17 million copies in two and a half months after its 2001 launch. Licenses, though, did not translate to PCs in the hands of end users hands. Twenty million PCs were simply not sold in just one month, meaning licenses were pumped out to partners and were sitting in the channel or at OEMs, going nowhere. Proving the point, OEMs like Dell began re-stocking Windows XP.

Those nagging technical difficulties presented another problem. Users - even Microsoft's own executives - complained Windows Vista was unable to work with their systems or crashed. The issue became hard to ignore, as Acer's chief executive slammed Windows Vista for being a huge disappointment to the whole industry, picking on stability and lack of sales as problems."

Marty :

Chips , you grow up , kid.. .Every business carries $ as objective.

The founder of Matsushita once said " It is a crime that a business is not making profit , it lets its stakeholders down"

By the way , let us know can you bring dinner to table for yiur family if you do not have $$

Maddog :

Uh Marty, to make a living you earn the $$ in an HONEST manner.

Kindly show me where Chips said we shouldn't earn money?

Can't find it, eh? I thought so.

n0neXn0ne :

Marty Says:
"By the way, let us know can you bring dinner to table for yiur family if you do not have $$"
"It is a crime that a business is not making profit..."

@Marty:
It's going to cost you $$ if he tells you his secret. Business 101:)

I'm going to take a guess; maybe he is a farmer and grows his own food?
Hence organic food w/o virus.

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