Microsoft-Yahoo!: Consolidation in the Search Business

The long-delayed partnership between Microsoft and Yahoo! is now a reality and this could mean one thing: it’s now a virtual two-man race in the search business.

This partnership between the two online giants would now have approximately 30% of the search engine market. The Microsoft-Yahoo two-headed monster is now pitting itself against the dominant force in the field– Google.

It’s pretty clear from the deal what both parties are getting: Microsoft is trying its darned best to make a dent in Google’s search business and Yahoo is in need of a big jolt to make up for its recent misfortunes (The company took a beating since rejecting Microsoft’s acquisitionn bid last year). Yahoo! Search will be powered by Bing and the company will be selling ads for the Redmond-based Microsoft.

From the customer point of view, it’s not much of a difference as Yahoo has never been known as a search company but a content-oriented company. Placing “Powered by Microsoft Bing” on the search pages will have little effect on the user experience as both Yahoo and Bing have emulated the look and feel of Google’s search engine result pages (SERPs).

If you ask me, Search Engine Optimization folks are probably the most affected by this development. Reducing the Google-Yahoo-Bing trinity into a Google-versus-Bing means less sites to optimize for, and this could result in easier work and fewer projects.