Is search engine marketing recession proof? Probably yes. Search engines are based on algorithms which can trace internet traffic and current trends. It is much more efficient way to reach the target audience. Google dominate US search market and has nearly 62 percent share. If analyst is to be believed, Google revenue from SEM is increasing about 33% this quarter. That leads to interesting competition across industry players who do search engine marketing business besides Google, Yahoo. Few well know companies are Efficient Frontier and Zanox. Both of these companies are bullish about their future growth. Even with the slipping U.S. economy, SEM spending in North America is now projected to grow to $25.2 billion in 2011, a significant increase from last year’s forecast of $18.6 billion, according to a research done by Search Engine Marketing Professional Organization (SEMPO).
Software as a Service (SaaS) is getting momentum finally.Zoho is partnering with the Swiss telecommunications provider Swisscom AG to offer its Business office productivity software to Swisscom’s 300,000 business customers, Zoho said Tuesday.
Earlier Microsoft announced SaaS initiative by launching Microsoft Live where companies can choose subscription based option (Instead of license based) for many Microsoft products e.g., MS Outlook. Google Apps also getting huge demand from various parts. ZOHO is currently competing with Google for its SaaS initiative. It seems Software as a Service is here to stay.
Report here.
The cheapest model of Apple Inc.’s new 3G iPhone, which is about to go on sale for $199 in the U.S., thanks to the collaboration between Apple and Telecom firms, costs about $173 to make, according to an estimate by research firm iSuppli Corp.
Notwithstanding other costs, therefore from a basic 8GB phone Apple, Telcos and other players in the value chain will earn $26. This will be shared among them in different proportion. Is $26 will be good enough for a robust profit margin for these players?
Interestingly Verizone CEO Seidenberg has a different view. While describing Apple as a “great company”, Seidenberg rejects suggestion that the iPhone is about to become a mass-market handset because Apple has accepted telecom firms’ request to subsidize it.
“There goes the conspiracy again. You’re declaring them a winner before they’ve earned it on the field” –Seidenberg.
Are you excited about Apple 3G iPhone and its drastic price cut? Hold your breath and you may end up paying more in long term.
Apple 3G iPhone’s price reduction may be a tempting offer but beneath of this entire buzz lays a great marketing strategy. Benefits of this price cut may not pass on to the end consumer. Apple is in negotiation with wireless service provider like AT&T, Verizon etc to sell their iPhone to consumer. Steve Jobs offers discount as large as $199 to Telecom companies per hand set. Tel-cos on the other hand deal with end consumer and offer a subsidize price. A first look may reveal generous corporate at work. Are they philanthropic?
After steel and telecom it’s the time for merger and acquisition in technology firms.
Cadence Design Systems Inc., the largest maker of programs for creating semiconductors, made a $1.6 billion unsolicited bid for Mentor Graphics Corp. As per the Industry insight this bid is to add customers and lower costs as chip makers cut spending.
“A combined Cadence-Mentor will offer customers a broader and more fully integrated product and technology portfolio in a timeframe that better enables them to address urgent and complex challenges associated with their next-generation product development,” said Michael J. Fister, president and chief executive officer of Cadence.
Combining with Mentor will help Cadence trim operating expenses as growth in the chip industry slows, Fister said.
Cadence reported $1.07 billion in operating expenses last year, a 6 percent increase from the previous year.
Full report here.