Financial Daily from THE HINDU group of publications
Friday, Jun 18, 2004

News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Info-Tech - Internet
Marketing - Strategy


Yahoo! pre-emptive move may pay off

Mamuni Das

New Delhi , June 17

YAHOO!'S 100 megabytes of free e-mail launch before the Google's 1,000 MB free e-mail service launch has ensured that the shift of Yahoo!'s free e-mail subscribers is captured to a large extent. Yahoo! has pre-empted Google's move to capture subscribers on the issue of storage, point out experts.

Additionally, it also shows a trend reversal at least in the short run wherein at present Internet companies had started making people pay for additional storage space in e-mails.

The announcement comes a month after search rival Google said it would launch a free e-mail service called Gmail that offers 1Giga Byte or 1,000 MB of storage, considerably more space than free versions of Yahoo Mail and Microsoft's Hotmail.

"Yahoo's plan to provide free 100 MB storage may impact Gmail considerably. 100 MB storage space will be more than satisfactory for users who have been managing with 4-6 MB storage space till now," said the ICRA Ltd Manager (Research), Mr Soumya Ghosh.

According to the International Data Corporation (IDC) India Country Manager, Mr Kapil Dev Singh, "There are basically different types of users. Yahoo! will be able to stop the migration of those users for whom storage space is a major constraint to Google's e-mail. Meanwhile, many users who have been using a certain e-mail address for long are not likely to shift."

However, Gmail with its 1,000 MB space will definitely have its novelty value and attract many users out of curiosity, adds Mr Singh.

Currently, Yahoo! is at an advantageous position, since it already has a huge subscriber base that will not migrate, he says. The privacy and security concerns about Gmail may prove beneficial to Yahoo!, he adds. Deleted mails from Gmail will stay in the Google server and can thus be retrieved.

Interestingly, just a day before Gmail formally announced its plans, Yahoo! had reported sent e-mails to some customers intending to gauge their interest in receiving 100MB of storage. Yahoo! had then maintained that the e-mail was just a consumer survey for its "loyal consumer base" and denied that it had any relation to the news of Gmail.

More Stories on : Internet | Strategy | E-Mail

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Dubai outsource zone from Internet City


BSNL plans 10 m more CDMA lines
Hutchison in pact with Nokia for network, gear
Defence Ministry nod for addl spectrum to mobile players
Acer Q1 unit sales up 200 pc
Ramco bets on VirtualWorks
Hospital software solutions
Jobstreet.com India revamps Web site
Rediff offers 1 GB e-mail storage
Yahoo! pre-emptive move may pay off



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright © 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line