Search Engine Optimization Company and SEO Services - Real SEO Firm: Yahoo Takes On Google with E-Mail Storage Offering

June 20, 2004

Yahoo Takes On Google with E-Mail Storage Offering

Yahoo (Nasdaq: YHOO - news) has rolled out a new e-mail product designed to compete with Google's forthcoming Gmail offering and dark horse Lycos' similar service, which made its surprising debut last month.

New features include 100-megabytes of free storage -- 25 times more than Yahoo's prior offering. Premium customers, including subscribers to SBC Yahoo! Dial and DSL, will have virtually unlimited storage at 2 gigabytes, or 200 times the amount offered by most other Internet service providers, according to Yahoo.

The company also has redesigned its e-mail page: It now includes new search capabilities, and graphical ads from Yahoo! Mail Plus and SBC Yahoo! Mail have been removed. And Yahoo is opening up over 50 million Yahoo IDs to give consumers more address options for their e-mail accounts.

Market Moves

Yahoo's plans initially were reported at a corporate meeting last month. Shortly thereafter, Lycos jumped the gun with a similar e-mail offering, albeit at different price points. The concept of free, near-unlimited storage first was introduced, though, by Google, as it announced its Gmail offering with great fanfare.

"The Internet-portal and search-engine market, in general, is becoming increasingly competitive just in the last six months," Yankee Group analyst Patrick Mahoney told NewsFactor. "All of them are looking for any way to differentiate themselves to garner more customers or keep current customers satisfied."

Indeed, within the space of a few months, free e-mail with unlimited storage has become the de facto minimum standard for Internet content providers, such as Yahoo, AOL (NYSE: AOL - news) and Google -- much to their chagrin, no doubt. E-mail accounts, at one time, were considered a revenue source for these providers, Mahoney noted. The premium accounts still will be, of course, but given the storage available in the free accounts now, the paying accounts will represent a much smaller portion of revenue.

Pay IM

Even this model may change once again. Online consumer and business products, such as e-mail or instant messaging, are in a constant state of flux as Yahoo, Google, AOL and others seek ways to make Internet services pay. For example, AOL is hoping to turn its instant-messaging product into a paying concern by attaching value-added services and marketing the enhanced product to business.

AOL recently launched AIM Business Services, a voice and Web-conferencing product it has developed through partnerships with technology providers Lightbridge and WebEx, respectively.

AOL can use AIM as a launch pad for conferencing, drawing more corporate customers, IDC research manager Robert Mahowald told NewsFactor, noting that Yahoo has Business Messenger, a similar product that offers the same WebEx conferencing technology.

The difference between the two offerings is that any AOL AIM customer can use the business services, while Yahoo requires users to sign up separately for its business messaging service and charges a subscription fee.

Erika Morphy, www.newsfactor.com

Posted by nakul at June 20, 2004 09:10 PM | TrackBack

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