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The Storage Effect of a Microsoft/Yahoo Deal

2:00 PM -- If it materializes, Microsoft's stunning bid to buy Yahoo Inc. for $44.6 billion will have a lot of implications. There will even be something in it for storage managers.

Microsoft's pitch to buy Yahoo is based in part on the prediction -- given by Kevin Johnson, Microsoft president, platform and services, on a conference call this morning -- that the online advertising market will grow from $40 billion today to an estimated $80 billion within the next three years.

That means that storage products supporting online advertising and the Web 2.0 applications that typically serve as a context for it, stand to benefit.

Don't take my word for it: Cue EMC's recently announced Web 2.0 campaign. Consider ongoing Web 2.0 efforts by IBM and others. And note that on last night's very heartening earnings report, 3PAR CEO David Scott told analysts that Internet Web 2.0 was the second-biggest vertical market for 3PAR, after service-provider hosting. (Software as a service, anyone?)

Think, too, about how the major competition for this merger, Google, owns one of the world's largest distributed storage networks in the world, albeit one of the most mysterious.

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