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 Channel Futures

Open Source


Ubuntu Could Profit From Both Yahoo, Google

  • Written by Joe Panettieri 1
  • January 26, 2010
Talk about a careful balancing act involving Ubuntu. Canonical appears to have financial relationships with both Google and Yahoo. Here's how the relationships -- involving Ubuntu 10.04 (Lucid Lynx) and Google Chrome OS -- are shaping up. Plus, the potential financial implications for Canonical.

Google Chrome OS Yahoo Ubuntu Lucid LynxTalk about a careful balancing act involving Ubuntu. Canonical appears to have financial relationships with both Google and Yahoo. Here’s how the relationships — involving Ubuntu 10.04 (Lucid Lynx) and Google Chrome OS — are shaping up. Plus, the potential financial implications for Canonical.

Let’s start with the Canonical-Yahoo relationship. Specifically, Firefox in Ubuntu 10.04 (Lucid Lynx) will use Yahoo.com as its default search engine. Why’s that? The simple answer: Money. According to Canonical’s Rick Spencer:

“I am pursuing this change because Canonical has negotiated a revenue sharing deal with Yahoo! and this revenue will help Canonical to provide developers and resources to continue the open development of Ubuntu and the Ubuntu Platform. This change will help provide these resources as well as continuing to respect our user’s default search across Firefox.”

I don’t know how much money the Yahoo relationship will potentially send Canonical’s way. But I think it’s an intriguing move. And users who prefer alternative search engines can easily change their browser’s settins.

Still, here’s where things get extra interesting. Canonical may find a way to profit from both Yahoo and Google. As we reported in October 2009, Canonical is under contract to help Google develop Chrome OS.

So there you have it. Instead of getting caught in a search engine shoot-out, Canonical could gain revenue from both Google and Yahoo. How much? It’s impossible for me to say. But it’s a heck of a balancing act by Canonical.

Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs Open Source

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20 comments

  1. Avatar Andros January 27, 2010 @ 7:41 am
    Reply

    Great news!
    I’m happy when read Canonical’s relationship!

  2. Avatar Arkadi January 27, 2010 @ 10:30 am
    Reply

    The problem is that Yahoo! search engine is now using a Bing (Microsoft) search engine, so it means that Ubuntu will be helping Microsoft to be a monopoly over the search engines.

  3. Avatar Owais Lone January 27, 2010 @ 11:02 am
    Reply

    @Arkadi
    I don’t care till the money is used to pay the likes of Rick Spencer and Jono Bacon… till it is used to give me a better Ubuntu to use.

    Good Luck Canonical.

  4. Avatar Joe Panettieri January 27, 2010 @ 12:34 pm
    Reply

    Arkadi@2: Microsoft building a search engine monopoly? I’m skeptical of that happening.

    Owais@3: When it comes to a “better Ubuntu,” what are you looking for?
    -jp

  5. Avatar Eli January 27, 2010 @ 4:00 pm
    Reply

    I’d be more than a little consternated about MS getting any gain from a Canonical initiative that involves us. However, will this really be the result from this move???

    Myself, I’m just going to switch it to google.

  6. Avatar Joe Panettieri January 27, 2010 @ 7:37 pm
    Reply

    Eli: Next time I speak with Canonical about the Yahoo relationship, I will find out if any money flows back to Microsoft. I doubt it dues… but I’ll be sure to ask.
    -jp

  7. Avatar Wesley January 27, 2010 @ 9:13 pm
    Reply

    I really doubt money will be going to MS with this deal. Canonical however will be making money and this is good for Ubuntu. I think everyone needs to calm down on this one its just a little default tweak on the web browser, not the end of the earth.

  8. Avatar jef spaleta January 27, 2010 @ 11:34 pm
    Reply

    Wesley:

    No its not the end.. its the beginning. This change of default wasn’t done for technical reasons..it wasn’t done in favor a giving users a better out-of-the-box experience. Noone is claiming Yahoo is a popular search engine in the userbase. Noone is claiming that Yahoo (an MS Bing powered Yahoo) search experience is somehow better than Google’s search. This is purely a money grab.

    So what’s next? What other insignificant defaults in the user experience are going to be changed purely on the basis of Canonical finding a preferential business partner who is willing to pay for the product placement a default option provides? Be wary if this is very lucrative for Canonical.. once they get a taste of this sort of revenue, they may find it addictive and would be willing to add additional items into the default user experience based solely on payment instead of best of breed, popular technologies.

  9. Avatar cabreh January 28, 2010 @ 5:26 am
    Reply

    Yeah, like making h.264 the default video format so Firefox and opera don’t work, and coming out with an OS to try and replace Linux as an alternative? What will Yahoo! do next?

    Oh..wait.. That’s Google isn’t it?

  10. Avatar raji punjabi January 28, 2010 @ 7:02 am
    Reply

    CANONICAL CAPITALISM

    Good news about Canonical working with Google and Yahoo. It’s about time a Linux company makes smart business moves promoting the Ubuntu brand and Linux free market capitalism.

    Even better to see Google stop doing business with the evil Communist Chinese. The Chinese threatened to nuke Los Angeles a few years ago, while George Bush was calling them “economic partners” at the same time.

  11. Avatar adam akbar January 28, 2010 @ 9:46 am
    Reply

    canonical still a company that need money, i think its make a sense that canonical will make relationship with yahoo!, its just default browser, we always can change it right?

  12. Avatar logan January 28, 2010 @ 11:18 am
    Reply

    I’m all for a linux company making money. But regardless of how the money flows, it will make it back to microsoft, as yahoo is in bed with them.

    How much longer until we are changing everything in linux to suit corporate interests. It starts here, next thing you know there will be more concern about corporate interests than user experience and user choice.

    I think this is a start to bad.

    In my opinion, I think linux distros should leave the applications options/features intact as the maker of the application intended. Who is Ubuntu to decide what default search engine firefox has. But please, rape away mozillas right of distributing their product the way they intended, so canonical can make a dime.

  13. Avatar Rex January 28, 2010 @ 5:30 pm
    Reply

    The benefits to Microsoft far outweigh any benefit to the Linux community.

    What Microsoft gets is increased market share for its Bong search engine. That’s what it needs to both advertise its success and to increase advertising revenue on Bong.

    Canonical gets some revenue.

    Linux users get the joy of benefiting Microsoft.

    Fedora, here I come.

  14. Avatar sola January 28, 2010 @ 7:22 pm
    Reply

    Even if some money goes back to Microsoft, this may be a good move.

    Look it this way: Microsoft – through Bing – supports the development of Ubuntu which, in turn, reduces Windows market share.

  15. Avatar bc February 1, 2010 @ 12:18 am
    Reply

    I use Linux largely because of concerns over the anti-competitive practises of MS and believe there are quite a few with similar feelings. It will be unfortunate if Canonical gets paid per search and my (our?) choice costs Canonical much needed revenue-but avoiding increasing the MS market share will take priority.

  16. Avatar darryl February 3, 2010 @ 11:46 am
    Reply

    Really, I cannot see anywhere in the GPL that states restrictions on how people use or configure their particular distro.

    Im sure there is not a clause in the GPL about not being allowed to do anything with Microsoft or any other company.

    Just because you dont like a particular company, what right do you have or the FSF to make extra demands regarding who uses what, when, or how.

    This is the kind of issue (non issue) that continuously hurt FOSS. It’s seems to be NOT about freedom anymore, it’s seems to be about control and restricting you’re freedoms.

    FOSS, uses things like SAMBA to interact with Microsoft and their protocols but you dont complain about that.

    It’s like all this Novell rubbish, where in the GPL does it state that you cannot do business with MS ?

    And complaining about it, increases the FUD levels for FOSS, sure there is Fear, Uncertainty and Doubt if you happen to do business with any company that RMS or the FSF or anyone else “in the community” does not like, you can expect to be attacked, and mabey even the GPL itself will be modified to ensure the FSF’s power or control, and the continued restrictions of our freedoms.

  17. Avatar aikiwolfie February 3, 2010 @ 4:17 pm
    Reply

    If Canonical switches to Yahoo as the default for Firefox I’ll switch it back. If they change it again against my will with updates I’ll either ditch the version in the repos and install my own or I’ll just ditch Ubuntu.

    I know Canonical needs to earn a crust. But this just seems desperate. Why would you hook up with a search engine in decline even with the backing of a company as big as Microsoft? It just doesn’t make sense. Canonical have definitely made a wrong turn here.

  18. Avatar ssj6akshat February 4, 2010 @ 6:42 am
    Reply

    @aikiwolfie:An update can’t change your search engine to yahoo.

  19. Avatar Jo-Erlend Schinstad February 8, 2010 @ 10:29 am
    Reply

    ssj6akshat: you’re wrong. Distrubution upgrades can change default settings to match the new default. If you’ve set a search engine yourself, then it will not be changed.

    I don’t like Yahoo much myself, but the wild objections here, make no sense to me. I takes only a couple of _seconds_ to change to the search engine you prefer. It’s just a matter of clicking the dropdown menu next to the search field in Firefox, selecting Google or whatever, and you’re done.

    People who are willing to change to another operating system because of this, should probably do some soul searching.

  20. Avatar ssj6akshat February 9, 2010 @ 5:26 am
    Reply

    This Canonical-is-Greedy thing is useless
    Canonical is a For-Profit company and it is still in loss so it is natural for them to do so.

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