Microsoft-Yahoo! Search scale is 'bogus', Google's Varian

Google's Hal Varian thinks a lot of the arguments advanced by Microsoft in justifying its 10-year deal for Yahoo search’re, in a word, "bogus." Microsoft has said that it needs "scale" to compete in the search market against Google, saying that larger amounts of traffic and data allow it to improve the quality of its […]

Google's Hal Varian thinks a lot of the arguments advanced by Microsoft in justifying its 10-year deal for Yahoo search’re, in a word, "bogus." Microsoft has said that it needs "scale" to compete in the search market against Google, saying that larger amounts of traffic and data allow it to improve the quality of its search experience. “…Another point that I think’s very important to remember...query traffic is growing at over 40 percent a year. If you’ve something that’s growing at 40 percent a year, that means it doubles in two years. So the amount of traffic that Yahoo, say, has now is about what Google had two years ago. So where's this scale business? I mean, this’s kind of crazy...”

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