Yahoo buys something

SEARCH engine Yahoo which has been in the doldrums for a year after failing to take Microsoft's offer of a buy out, has bought Softbank's IDC outfit.

The deal, which seems to have been plotted by Yahoo's Japanese arm is part of the outfit's bid to put itself into the data centre.

Softbank is a Japanese telco which deals with broadband, fixed lines and internet services. It also flogs the iPhone in Japan. However its IDC arm is what has interested Yahoo.

Yahoo is convinced that as video traffic on the world wide wibble gets bigger, there will be a greater demand for data centres and cloud-based computing.

For it to take part in this 'gold rush' Yahoo needs a strategic base for the data centre business.

In the past it has rented data centers from operators like Softbank, now Yahoo Japan gets centres of its own. This will mean a large reduction in data centre-related cost the firm reckons.

There is no word on how much this will all cost. µ

L'INQ
Japan Corp