News

posted on 27 June 2008 13:34

Yahoo is developing a cloud computing infrastructure as part of a corporate restructuring aimed at restoring shareholder value to the levels promised by CEO Jerry Yang when rebuffing the Microsoft takeover bid of $44.6 billion.

Yahoo's technology organisation, under the leadership of Ari Balogh, CTO, will be responsible for the cloud computing structure. The company already offers free e-mail to users and clearly has an existing infrastructure it can build on and scale out as it develops services.

The company says that "principal changes are developing a world-class cloud computing and storage infrastructure; rewiring Yahoo! onto common platforms; and creating a stronger partnership between product and engineering teams."

"In order to expand its cloud computing capabilities, the Company will form a Cloud Computing & Data Infrastructure Group, charged with developing a computing infrastructure that balances scalability with cost effectiveness."

With this initiative Yahoo is following in the steps of Google, Microsoft and Amazon, also Nirvanix, and EMC which offer general cloud computing and storage services, and Salesforce.com and other cloud application suppliers.

However Yahoo has ground to make up as it does not have a unform technology platform underlying its services. The different systems will have to be brought together and co-ordinated at the same time as services, such as Yahoo cloud storage and backup, are developed.

What it does have though is the ability to react to its now-competitors and device bertter offerings. We shall have to wait and see.

^{[Chris Mellor.]}