In the end of the Microsoft / Yahoo! saga, 5 Billion dollars separated the two giants from merging.  Yahoo wanted to be bought $38 / share and Microsoft was only willing to pay $32 / share.  This $6 different amounted to over 5 Billion.

Steve Balmer, Microsoft’s head, wrote a nice letter explaining his reasoning to Yahoo’s chief, Jerry Yang.  This was just written 50 minutes ago.  You can check it out by clicking here.  Interestingly, Steve pleads with Jerry to not look to deal with Google and proceeds to provide extensive reasoning why not in the letter.  A little biased indeed since if Yahoo joins with Google, Microsoft will have lost the online advertising battle.

What will happen next?  Yahoo might look towards uTube or Google for possible parternships while Microsoft will have to forge on.

Starbucks has a deal now with ATT to offer free wi-fi access to iPhone users.  Previously, Starbucks had a deal with T-mobile to provide paid Internet service to computer users.  Now, iPhone users can use wi-fi access for free instead of using the slower EDGE network.  Wi-fi access is similar to going on the Internet wirelessly from home.  You simply connect wirelessly to a router that, in turn, connects to a modem for Internet access. 

How does it work?   As an iPhone user, your Safari browser will automatically prompt you to enter your phone number for verification.  Once it’s verified, you’re good to go.  This is one more reason to visit Starbucks for a cup of Joe.  Just make sure to keep your coffee at harm’s length from your laptop.  We have many customers that visit our computer repair shop shortly afterwards due to a cafe latte that spilled on their keyboards.

A couple months back, Yahoo! signed an agreement to be acquired by Microsoft.  However, as of this past Saturday, the two have not come to terms.  Basically, Yahoo didn’t like the aggresive terms that Microsoft set forth.  These terms are confidential, but most likely include Microsoft attaining rights to Yahoo’s pay-per-click advertising to better compete with Google.

Currently, the deadline was Saturday to wrap up negotiations.  Since they haven’t, the deal might not even happen at all.  Or Microsoft may perform a hasty takeover by wiping out the Yahoo team and bringing in its own Microsoft board for full authority.  While this battling continues, Google continue to chug along with its increasing stock price and top online advertising model.

Blockbuster and Circuit City are two dwindling electronics stores. Blockbuster is being beat out left and right by Netflix and other online movie download websites. Circuit City is losing the lead in terms of electronic sales. Even CompUSA going out of business is not helping Circuit City’s sales.

If Blockbuster buys Circuit City, they’ll be in a better position, but they’ll need some unique strategy that will still set them apart from Best Buy and Staples. Sure, Circuit City has a tech support team, but nobody really hears of their tech support with the Geek Squad’s public appeal. Plus, the Geek Squad doesn’t hold such a good reputation the way it is. So, in sum, this acquisition would be a bust.

It’s finally official: Microsoft bought Yahoo! for 47.2 billion!

Microsoft will now be able to compete on an advertising level with Google.  Specifically, Microsoft will be able to leverage the Yahoo website to gain revenues from online advertisers.  Yahoo currently competes with Google Adwords for pay-per-click advertising.  Guess who will now capitalize on all of the revenues on the clicks?  That’s right - good ol’ Microsoft.

In turn, Yahoo will be able to compete with Google on more of a larger, robust scale with Microsoft as a niche software developer giant.

One big note:  Microsoft is planning to convert its MSN e-mails users to Yahoo accounts.  No indication has been made as to when, but it sounds like Microsoft is looking to further brand itself with Yahoo by showcasing Yahoo emails instead of MSN.

With wireless phone competition at its strongest, att just took the lead with its newest $100 promotion.  The promotion asks for just $100 and you’ll be able to call domestically for unlimited minutes per month.  There is no roaming or out-of-area fees.  This is definitely are bargain for those chatter-boxes out there.  Keep in mind though this does not include data for blackberries, treos, and iPhones.  Data / e-mails / Internet plans are sold separately. 

Sprint has offered a $120/month plan that includes unlimited voice and data.  Cellular South  has been offering the same plan for $80.  Verizon has matched the same plan as ATT at $100/month.  Tmobile will be announcing a better unlimited plan soon also offering free text messaging and some data services.

This fierce competition is in the hopes to compete with voice over IP phone companies, such as Vonage and Comcast.  The wireless companies are hoping consumers will use their cell phones as their universal out-of-the-house and home phones.  We feel that the unlimited plans are good; however, they’ll need to kick in some data/e-mail services to make it even more appealing to the masses.  Most people who are talking a lot on their smartphones and handhelds also email a lot. 

This $100 rate is typically much more than people want to spend especially since the data service is typically $35 - 50/month.  Plus, many high-volume talkers don’t purchase many minutes since rollover minutes accumulate to the point where purchasing the higher plans are not necessary.  So, for these unlimited plans to do well, ATT, Verizon, Sprint, and Tmobile need to either decrease the $100 rate and/or kick in text messaging and data/email services for free.

Technology is becoming screaming fast in terms of new products and software.  Apple has put out Mac Air, Windows has released Vista.  Laptop hard drives may be purchased at 250GB and external hard drives may be bought up to 4-drives and up to 2TB (that’s 4 x 500GB).  It’s great that new products are being offered to consumers and at alarming productive rates.  This shows that technology is accomodating consumers’ needs.  For instance, larger hard drives are able to store users’ larger iTunes and picture collections.

But, are the new technologies stable?  Are these hard drives as stable as their predecessors (i.e. 40GB, 80gB, and 120gb hard drives)?  I’m sure you’ve had or heard of an older computer from the 90’s lasting for about 10 years time, and that was pretty normal.  Now, laptops are lasting 2-3 years before a part, most likely the hard drive, breaks down.  We believe that the technology is going at a rapid pace and, whether to fast or not, we’ve seen new computers and operating systems fail faster than a decade’s past.  We believe that more computers and hard drives have been produced to meet the higher demand of more computer users.  So, we feel it’s more of a numbers game in the end.  Hopefully, you will not be one of the unlucky few.  But, if your computer decides to crash, your friendly NYC computer support team is ready to get you back on track.

CompUSA is closing 126 of its stores due to financial woes.  Its parent company, US Commercial Corp SA de CV, reported a loss of 45.7 million during the third quarter of 2007.  This shutdown includes the store as well as the computer support division.

Is this good news or bad news for tech consumers?  Well, based on our customer feedback, we have found that many had the same sentiments: “It’s about time!”  Those who searched for laptops, digital cameras, or other computer equipment felt like the customer service was lacking in two areas: 1.  the wait was too long and 2. the advice was not clear in terms of whether the product proposed was tested or if they were just trying to make a sale.  In regard to their computer support, some users felt like their techs were not interviewed or screened thoroughly as shown by their inability to resolve issues as well as customer-service skills on-site.  That disappointment is probably due to the fact that CompUSA’s hiring process was not in-person or on the phone, but entirely by completing an application online that was 95% approved.

The pricing overall by consumers’ feedback was grossly high, and the warranty, when provided, took app. 2-3 weeks.  So, it is safe to assume CompUSA will not be missed.

“Blackberry blackout” has become the new theme for the Canadian Immigration Department.   What does this blackout mean?  In the hopes to create a better work and personal balance, it means the staff is prohibited from using their blackberry devices from 7PM - 7AM and on weekend and holidays.  It’s not that they’ve used their blackberries so much on their off time, it is just to provide good quality of life on the staff’s personal schedule.

Other government agencies and companies might follow the Canadian’s government’s lead.  It is very easy use handhelds, such as blackberries, all the time since it is part of our culture.  Text messaging, Internet access, and e-mailing is very accessible when having a handheld, but it might be a good idea to give it a rest when not working.  The only concern is how does Canada account for emergencies during non-working hours?

Microsoft has publicly announced its bid to acquire Yahoo for 44 Billion.  Microsoft’s desire to buy Yahoo is not new as it has been rejected a few times in the past by Yahoo.  The difference now is to compete against Google.  Google has grown so big and powerful by its technology and company acquisitions.  Microsoft and Yahoo have lost market leadership in the technology industry. 

By joining together, Microsoft and Yahoo will further propel their online advertising and search engine position.  They would take over the #2 spot for search engine placement and would be able to combine Microsoft’s Live campaign with Yahoo’s sponsor ads.  Individually, they do not come close to Google, but in partnership, there is a chance.  The question is:  Does Yahoo have enough energy and weapons left or is it going for the quick cash reward?  Time will tell.  And Google will continue to look over its shoulder.