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Microsoft-Yahoo deal is big all right, but is it the next big thing?

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    A decade later, it made quick work of Netscape Communications, which popularised Web browsing in the mid-1990s. While Microsoft remains very profitable because of its lock on desktop software, its efforts to dislodge the Valley’s leading third-generation Internet company, Google, have so far failed.

    Google’s central innovation, Internet search, has confounded Microsoft, despite investing billions in both technology development and numerous smaller acquisitions. Internet technology has overtaken the PC desktop as the centre of the action, as people increasingly view the computer as merely a doorway to their virtual world. Google calls this phenomenon “cloud computing.”

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