• http://www.gundogsupply.com robsnell

    GREAT article! As a Yahoo! Small business customer since 1998, I’ve always had the confidence that EVEN THOUGH Y!SB and Yahoo! Store were small potatoes compared to the $$$ in display advertising and search marketing (PPC), the Yahoo! Store part of Y!SB was so profitable that Y! would leave it alone.

    My guess is that Y! generates 4-5 BILLION (with a B) in sales for the 45-50K Yahoo! Store owners and gets $125 MILLION a year in rent and revenue share fees from merchants.

    Yahoo! is pretty serious about its Web-hosting business. It’s not a sideline or an afterthought. Nowadays, anyone with a T1 line and a server can set up a box and be a “Web-hosting company,” but sometimes it takes a $45 billion market-cap company to do things right.

    Well, does it?

    What about uptime? Load balancing infrastructure? Image hosting with Akamai? Is this still true?

  • http://www.brickmarketing.com nickstamoulis

    I really hope Yahoo! does not sell their small business division, not only since I use many of their services, but because it might disconnect them from the small business world all together…

  • http://www.tag44.com tag44

    Well Yahoo also facing the money cries these days due to long going recession, so now has to stop providing free services and switch to generate some income.