Ben Gilbert: belief

Transcript context

…And go run Server & Tools, which we will get to that in a minute. Okay, some of the other fun tidbits of this Yahoo deal. Bing powers Yahoo search. Microsoft does the ad sales for both sides. While Microsoft don’t have the direct relationship with the users, they do get to build up their marketplace liquidity on the advertiser side. As you mentioned, there’s a huge data advantage of actually powering the search. While Yahoo gets 88% of the revenue in the deal for the first five years, arguably the value from this basically all accrued to Microsoft because they ended up building out not only a proper advertising business, which now is used on a number of different sites—I think even in partnership with Netflix—for their ad supported tier, but also being, once it had all the Yahoo traffic, needed to be a scaled web service. Like a distributed computing system that operated at 24x7 uptime, with super low latency, fast response time, and huge scale. God, that sure sounds like the cloud.…

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