On Monday, Google and Salesforce are officially announcing the complete integration of Google Apps (Docs, Calendar, Gmail, and Gtalk) and Salesforce’s online enterprise apps. TechCrunch broke the story last week. Now we have some more details. Google Apps will get exposure to Salesforce’s one million paying business subscribers, and Salesforce in turn will become more attractive to the “tens of millions” of business users on Google Apps.

Google is in effect becoming Salesforce’s productivity suite. Google documents, spreadsheets, and presentation can be created from within Salesforce’s CRM application. GTalk works as the de facto instant messenger within Salesforce. With one click, sales people who use Gmail can send any email correspondence with potential or existing customers to Salesforce, where it becomes recorded as part of the sales cycle. Sales events and marketing campaigns can be overlayed onto a Google Calendar (see screen shot below), as well as colleague’s schedules for figuring out convenient meeting times.

The Google productivity apps are free unless a company wants to upgrade to the premier edition (which includes added security and management features) for $5/user/month. By summer, Salesforce will be reselling the premier edition itself for twice as much—$10/user/month—and will throw in telephone support and put everything on one bill.

Salesforce founder and CEO Marc Benioff tells me that he is embracing Google as another way to undercut Microsoft:

You’ve seen what we have been doing is slowly integrating all of our services with theirs. Certainly the enemy of my enemy is my friend, which makes Google my best friend. I have spoken with a lot of customers who want to get off of Microsoft Word.

Of course, Microsoft’s desktop cp-Office apps are threatened long-term by Google Apps, and its own CRM software for small businesses is threatened by Salesforce. But why didn’t Salesforce simply build its own Web-based productivity apps as so many others are doing? Says Benioff:

I really didn’t want to compete against Google in an area they consider core.

Better to gang up against Microsoft together. Now he has the leading Web-based productivity suite baked into Salesforce. But that brings up another question. If Google and Salesforce are so well suited for each other, why doesn’t Google just buy Salesforce? It could accelerate the growth of Google’s enterprise business and make it a little bit less reliant on advertising dollars (since Salesforce charges monthly subscriptions). When I put this notion to Benioff, he punted it back to Google:

You should give them a call and ask them about that.

Something tells me I won’t get a straight answer from them either. But it is obvious that Google is thinking along the same lines when it comes to enterprise apps in the cloud. Just last week, Google launched its own marketplace for enterprise apps, which is similar to Salesforce’s AppExchange. Ultimately, though, how many different Web platform companies can co-exist? A Google-Salesforce combo could sew up the Web platform for enterprise apps.

Crunch Network: MobileCrunch Mobile Gadgets and Applications, Delivered Daily.

A Yahoo board meeting Friday authorized talks with both Microsoft and Time Warner (AOL) next week.

According to a New York Times report quoting sources, Yahoo’s board met to evaluate Microsoft’s takeover bid and other alternatives but did not make a formal decision on which option to pursue.

The fence sitting from Yahoo provides some solace to Microsoft after a week where an AOL-Yahoo deal was said to be close at hand.

The Times also quoted a “person briefed on the discussions” between News Corp and Microsoft for the former to join the bid for Yahoo as describing the discussions as being only “conceptual..suggesting that a joint bid was unlikely.”

(source img credit: RedBrick Blog)

Crunch Network: MobileCrunch Mobile Gadgets and Applications, Delivered Daily.

The Associated Press Online Video Network (OVN), a joint project between the AP and Microsoft, has implemented a new syndicated video feature that will allow AP affiliates around the world to easily share content with each other’s websites. Members are able to selectively choose which affiliates will be allowed to use their media, and receive a portion of the revenue earned on these remote sites.

The AP wire service was originally created to help distribute costs across all members of media networks, including those associated with television, radio, and newspapers. The online video syndication feature is a logical step in this regard. This feature will be especially useful in situations where video is only coming from local sources (such as during a natural disaster). An affiliate will be able to share its content with any number of participating members nationally while excluding close competitors, allowing it to retain exclusivity in its own regional market.

If affiliates choose to sell advertising against their local content they keep 100% of the advertising revenue. If they decide to syndicate that content across the network they will earn 30% of revenue gathered from the affiliate sites featuring their video. According to Robert Aitken, product manager for AP’s online video, there are currently over 1,800 affiliates participating in the network. These are not restricted to television networks - many are newspapers and radio stations that have created media-rich websites for their users. Possible competitors to the OVN include ClipSyndicate.

AP’s OVN also announced today that AnswersTV would be its exclusive provider of Health and Lifestyle video content. AnswersTV is a cross-platform television network, providing original HD programming on subjects including food, health, and magic.

Crunch Network: CrunchGear drool over the sexiest new gadgets and hardware.

Last night, Microsoft pushed out a ton of new features to Windows Live Maps, including a face-lift to some of its 3-D cities (Las Vegas, Dallas, Denver and Phoenix), the ability to export your collections to GPS devices and GeoRSS feeds (which means I can make custom maps for my Dash GPS), support for 3D-map video tours, better directions and traffic information, and also one-click directions that change the route on a map based on what direction you are coming from.

But there was one feature that really caught my eye. You can now import KML files into Live Maps. KML stands for Keyhole Markup Language, and it was invented by Keyhole, the acquired startup behind Google Earth that is now part of Google. KML has become a standard for describing maps hosted on the Web.

What this means, though, is that Live Maps can now drink Google’s milkshake. Because all the customized maps that people have made and share on Google Maps can be grabbed as a KML file. So now Microsoft can benefit from all that work done by Google Map users by simply slurping all of those maps into Live Maps.

For instance, here is a Google map created by a user named Matthew B. titled PA & NJ Winter Camping that shows camping sites in those states:

Now, here is the same map sucked into Windows Live Maps. It is the exact same information with the same pushpins and descriptions layered into Live Maps:.

Of course, this is a two-way street, since any customized map on Live Maps or in Microsoft’s Virtual Earth can now also be exported as a KML file. Google can take out its straw and slurp right back from the Live Maps glass. The difference is that Google’s glass is a lot more full and is more yummy because so many more people have created customized Google Maps than customized Live Maps.

So right about now, Microsoft is wielding an old wooden bowling pin, wiping its chin, and ranting, “I drink it up!”

(Milkshake photo by Dion Gillard).

And here is a picture of an enhanced 3D Las Vegas:

Crunch Network: MobileCrunch Mobile Gadgets and Applications, Delivered Daily.

Gartner analysts Michael Silver and Neil MacDonald told a conference audience yesterday that Microsoft’s Windows product is collapsing and must make radical changes to its operating system or risk becoming a has-been.

They specifically pointed out the slow adoption rate by businesses - just 6% to date - and the fact that the Vista code base is so large. That means changes take years, and only high end computers can really take advantage of it anyway.

For most early adopters (and all Mac users), the browser is increasingly the only operating system that matters anyway. Windows isn’t really that relevant any more just because of the increasing utility of online applications like Google Docs, which competes with Microsoft Office. Vista could be perfect and it still wouldn’t matter. The fact that it is flawed only makes the situation worse.

Microsoft makes a ton of revenue on sales of software that sit on the computer. $15 billion a year for Windows alone, and another $16 billion for Office and Exchange Server in 2007. That’s 60% of Microsoft’s total revenue, and profits from those groups float the rest of the company. Microsoft isn’t a viable company without their consumer and business desktop software profits.

The real question isn’t “What can Microsoft do to fix their Windows product?” but rather “Even If Windows and Office were perfect, would it be enough to keep Microsoft relevant in the medium term?” I think the answer to that latter question might be “nope.” And that, of course, is why they want Yahoo so badly. Online advertising revenue is their only real hope of long term survival.

Crunch Network: CrunchGear drool over the sexiest new gadgets and hardware.

Google has hired boutique investment bank Qatalyst Group to provide advice on the ongoing battle between Microsoft and Yahoo.

Qatalyst Group is headed by colorful Silicon Valley investment banker Frank Quattrone, who as we noted in March has returned to the Valley after spending years in the wilderness fighting obstruction of justice charges.

Quattrone was head technology banker for Credit Suisse, and Morgan Stanley before that, during the first internet boom and had a hand in practically every major Internet IPO during the 1990s, from Amazon to Netscape. Notably Quattrone was one of the first investment bankers to show an interest in Google.

Amid daily reports of Microsoft’s attempted takeover of Yahoo, it comes as little surprise that Google has turned to an outside advisor for guidance. That it is Quattrone’s Qatalyst Group shows that Quattrone may climb back to his prime spot in Silicon Valley faster than his detractors would have expected..

Crunch Network: CrunchBoard because it’s time for you to find a new Job2.0

Interesting news coming out of Washington D.C. today around the addition of Google advertisements on Yahoo search result pages. House Judiciary Committee Chairman John Conyers, Jr. (D-MI) (pictured) and Judiciary Ranking Member Lamar Smith (R-TX) made a joint statement saying that the deal “further underscore[s] the need for a hearing on the state of competition on the Internet and online advertising.”

In February, the House Judiciary Committee announced plans to hold a hearing on the State of Competition on the Internet. Yesterday’s announcement of a two-week trial venture between Yahoo! and Google, as well as reports of a possible Yahoo!/AOL merger, further underscore the need for a hearing on the state of competition on the Internet and online advertising. The Judiciary Committee’s Task Force on Competition Policy and Antitrust Laws will continue to explore these issues.

Microsoft must be happy to see this, which underscores the fact that the government won’t sit on the sidelines as the Internet giants sort out who gets Yahoo’s search assets. It’s time for everyone to open their checkbooks and call their lobbyists. Congress wants a piece of Yahoo, too.

Crunch Network: MobileCrunch Mobile Gadgets and Applications, Delivered Daily.

What a day. I can’t say neither side is throwing punches any longer in the epic fight over what’s left of Yahoo. Microsoft and Yahoo are done, for the most part, with sternly worded letters.

Yesterday Yahoo made two announcements/leaks. First, that they were very close to agreeing to terms that would combine Yahoo and AOL as an alternative to the Microsoft deal. And second, that they will run, ahem, a two week test of Google Adsense on 3% of their Yahoo search results page, instead of their own ads.

Microsoft responded that the Google deal is a precursor to handing over de facto monopoly power of the search advertising space. And they threw their own curve ball as well: News Corp. has switched teams and is now in Microsoft’s camp.

The formal entry of AOL into the discussions suggests Time Warner wants to offload the asset soon. If a Microsoft/Yahoo deal goes through, the only realistic suitor for AOL is Google, and that gives them little negotiating leverage.

The News Corp news is more interesting. In a move reminiscent of the Italians switching sides in World War II, they’ve abandoned their Yahoo soul mate for a more compliant Microsoft. They put in a bid for Yahoo in February (more), which was reportedly countered just a couple of weeks ago. My guess is the counter offer wasn’t very interesting, so they switched sides. You gotta love News Corp., they’re always there for you when they need you.

But by far the most interesting news is the Yahoo/Google alliance. Industry insiders still question whether regulators would allow the deal, but Yahoo’s been whispering around Silicon Valley that a business partnership with Google, as opposed to a merger, would stand a much higher likelihood of getting approved.

What Is Yahoo’s Strategy - Scorched Earth, Or Knife To The Nose?

Yahoo has put costly severance plans in place to both retain employees and make themselves a less attractive acquisition candidate. But top talent has left anyway, and just about everyone at Yahoo seems to be looking for a job (even execs I’ve spoken with). Meanwhile, the Google deal shows they would rather give up the search marketing game, their biggest asset, than become part of Microsoft.

Their actions, which appear to be based on destroying their market value as a counter to the Microsoft bid, benefit neither their stockholders nor their employees. And by setting up Google as the only real option in search marketing, they are disrupting what little market balance and competition exists in that space today.

I can’t decide if nose knifing or scorched earth is the best way of describing what they’re doing, but I have to ask: If Yahoo “wins” this epic battle with Microsoft, will there be anything left at the end to celebrate over?

It’s time to end this thing before Yahoo ends itself. I don’t care if they throw AOL, MySpace, and half the rest of the Internet into the deal along with Yahoo. But the health of the Internet demands a counter balance to Google. Yahoo-Microsoft, given the current state of things, is the only reasonable outcome.

Crunch Network: CrunchBoard because it’s time for you to find a new Job2.0

Things are moving fast in the Yahoo-Microsoft drama. All the different forces are aligning for an endgame. The latest twist: The WSJ is reporting that Yahoo is close to signing a deal to combine with AOL.

This at the same time that Yahoo is doing a limited test to place Google ads in its search results. Meanwhile, News Corp, which Yahoo once hoped would be its white knight, is said to be turning on Yahoo and talking to Microsoft about joining its bid. Obviously a lot of balls are up in the air right now, and anything is possible.

Here is how the AOL-Yahoo combination is shaping up, according to the WSJ:

Under the terms being discussed, Time Warner would fold its AOL unit into Yahoo and make a cash investment in return for about 20% of the combined entity, the people said. The deal, which wouldn’t include AOL’s dial-up access business, would value AOL at about $10 billion. As part of the deal, Yahoo would use the Time Warner cash and additional funds to buy back several billion dollars worth of its own stock at a price somewhere in the middle of the range between $30 and $40 a share

Tellingly, that $10 billion valuation is half of what AOL’s business was pegged at when Google invested $1 billion for its 5 percent stake in AOL a little over two years ago. (But that does not include the dial-up business). What we are witnessing is all sorts of contortions on both sides to make the numbers work. We’ve believed all along that Time Warner will put an offer on the table, but it will be difficult to make it pencil out, especially if an AOL-Yahoo combo is up against a three-way Microsoft-MySpace-Yahoo deal.

Each of these potential deals would create integration nightmares, but a three-way tie between Microsoft, MySpace, and Yahoo would create an entity with so much traffic and advertising inventory that it might not matter. The chances of such a complicated deal going through, though, are small. The most likely outcome is still Microsoft buying Yahoo, and this is all just fodder for the negotiations.

Crunch Network: CrunchBoard because it’s time for you to find a new Job2.0

News Corp is said to be in talks with Microsoft about joining its bid for Yahoo, according to sources quoted by the New York Times.

News Corp entering the mix may allow Microsoft to raise its bid, putting even more pressure on Yahoo to accept it. It would also remove News Corp as a possible alternate bidder for Yahoo.

A combined Microsoft/ News Corp/ Yahoo would marry Fox Interactive Media and most notably MySpace with Yahoo’s web properties and Microsoft Live and MSN services, creating an even bigger challenger to Google.

According to the Times, the talks between Microsoft and News Corporation are at a sensitive stage, with their source stating that “there’s a long way to go before anything is definite.”

The news comes after another colorful day in the Microsoft/ Yahoo standoff with Yahoo announcing a trial of Google ads against its search results, and Microsoft responding by saying that any Yahoo/ Google tie-up lessened competition.

Update: The WSJ is reporting that Yahoo is close to signing a deal to combine with AOL.

Crunch Network: MobileCrunch Mobile Gadgets and Applications, Delivered Daily.