A string of Yahoo sales, engineering and product executives took the stage on Wednesday in the company's first full-day briefing with analysts since May 2006, all with a mantra that came down from on high: "Today is the beginning of a journey back to respect," said CEO Carol Bartz.

With page views increasing, Carl Icahn having drawn in his horns, and the company extending a deadline for finalizing a search agreement with Microsoft, the time was right for a love-in.

Finance Chief Tim Morse said Yahoo expects to achieve operating margins between 15 percent and 20 percent by 2012. After the third quarter's "pathetic" 6 percent, shareholders would certainly consider that a more respectful performance.

Another way to show their respect would have been to give specific details on the engineering involved in the promised prestige. Executives said Yahoo would achieve the new margin targets by accelerating its revenue in the next few years, but demurred from providing a specific revenue growth target.

The company said it would invest in editorial staff to produce more original features, and tweak its online products to keep users on the site longer and boost advertising revenue.

Hiring more staff and investing in ad search wizardry will certainly add to costs, so the need for a little more Internet alchemy could require a leap of faith to engineer the recovery in esteem Yahoo hopes to achieve.

Three years is a long time to go without having an analyst day, and it seems Yahoo decided to make up for lost time with a marathon seven-plus-hour briefing to Wall Street’s number-crunchers on Wednesday.

Perhaps having gotten a little rusty from non-practice, Yahoo dispensed with some of the customs of the analyst day ritual. Members of the press were barred from the event, and forced to watch the proceedings over a Webcast, with all the attendant technical difficulties and indignities.

Yahoo’s plug for analysts was simple enough: Yahoo got boring and slow-footed over the years, but the company still commands a massive online audience that’s extremely valuable to advertisers.

But the company’s delivery of the message did not always follow the standard analyst day script.

Specific financial targets were few and far between (Yahoo’s promise of 15 percent to 20 percent operating margins by 2012 was the meatiest nugget).

And one slide, during a presentation on advertising yield-optimization, seemed more suited to a blackboard at MIT than a briefing with financial analysts.

Questions?

MySpace, the online social network (can we still call it that now that it has ducked out of the Facebook/Twitter competition?), appears to be pursuing what I’ll call the “two-pronged news strategy.” You get used to it when you cover media and technology. For those of you who don’t enjoy this privilege, it goes like this:

• Pick a news outlet that you like and whisper things to them about what you’re doing. It doesn’t have to be interesting, it just has to be exclusive. If you’re in public relations, you don’t even have to know that someone in your company is doing this. It works well for you.
• Let the rest of the press read the story and bombard your telephone and e-mail with messages demanding to know if it’s true. Score a big hit on the news cycle. Because you either decline to comment or only want to talk “on background,” it heightens the air of mystery — and newsworthiness.
• The official announcement of the news, which will always resemble 90 percent or more of what you read in the first round of anonymously sourced stories, will get just as much attention as that first round. It’s a 2-for-1 deal that is irresistible to many companies.

I don’t know that MySpace is doing this, and wouldn’t be able to confirm it if I asked. It could just be that the reporters who get the breaking news have great sources and the reporter asked smart questions that would yield good answers. I’ll let you judge.

The first example comes from Kara Swisher, tech blogger at AllThingsD, which is MySpace’s cousin in the News Corp family. She reports:

Microsoft’s MSN is in preliminary talks with MySpace about using the social networking site’s music service, MySpace Music, to help power music offerings on the giant portal. …

Sources said Microsoft execs don’t think they can do as good a job as MySpace is doing and don’t see the point in striking needed but complex deals with music labels, which the News Corp. (NWS) property already has.

MySpace, Swisher adds, would get a “gusher” of traffic. I asked MySpace whether we could talk about this. From spokeswoman: “Off the record I can’t comment.” OK.

The second example is this story in The Telegraph from Monday:

Facebook and MySpace are in talks about sharing content across both sites, according to senior figures at the two companies. The move could potentially see MySpace music and video footage being shared on Facebook via its Connect platform, which allows people to log into third party sites using their Facebook ID.

Sheryl Sandberg, Facebook’s chief operating officer, told The Telegraph: “Facebook is focussing on building the best technology which helps people share content, while at MySpace they are focussing on more a content-led strategy. We would like to have their content, as we already do with many other sites, shared across our network because it is good for our users.

On this one, MySpace CEO and former Facebook executive Owen Van Natta confirmed the talks on the record. But I’m in the position of only being able to refer you to that article.

On the record, MySpace wouldn’t comment. I suspect that the comments will come later when we rewrite the Telegraph’s story along with the rest of the press corps.

Before this week’s dueling Google and Microsoft search licensing deals with Twitter, a recurring rumor in Silicon Valley had Google trying to buy Twitter outright.

So when Google co-founder Sergey Brin made a surprise appearance at the Web 2.0 conference in San Francisco on Thursday, the stage was set to finally put the record straight.

Showing that ten years in the media spotlight have not been wasted on him however, Brin displayed a deft command of language to duck the question.

Web 2.0 organizer John Battelle: Did you try to buy Twitter?

Brin: I did not try to buy Twitter.

Brin then added, “But if companies approach us we definitely consider any opportunities to buy.” But the resultant ambiguity about whether Brin was speaking about himself personally, or Google, effectively left the question unanswered. Nicely played.

Meanwhile, the list of Internet giants partnering with Twitter came close to growing to three companies, after AOL CEO Tim Armstrong opined about the role of real time data at AOL during his talk.

“I think those guys have done something very impactful,” Armstrong said of Twitter. “And if it works with our platforms and we can leverage it, I think we would be happy to do that.”

Armstrong offered a couple of other interesting tidbits, saying that AOL was in a good position to proceed with its plan to eject from the Time Warner mothership and saying that a guaranteed AOL spin-off was not a precondition of him taking the job at AOL.

He also hinted at a mysterious new content technology platform that he said AOL has been developing internally since this summer, and which would provide a “secret sauce” to the company’s variety of media properties.

“It’s a broader platform with more information around content and the creation of content,” Armstrong said.

Another answer with plenty of ambiguity, but in this case, more details will likely come soon.

Microsoft highlighted new multi-touch features on the range of new PCs as it launched Windows 7 in New York on Thursday.

Here’s a clip of a photo managing program, which allows you to sort through snaps and manipulate them manually, and a shot of the new Kindle application from Amazon, which lets people read a book onscreen, if that’s what they want to do.

The Windows 7 launch event was quieter than previous versions, focusing on slick new hardware and consumer-oriented features such as watching TV on the PC, creating home networks, making videos and playing music.

Early reviews of Windows 7 have been positive, but it will be a few months before it becomes clear if consumers really take to the new operating system.

-Matthew Bath is technology editor at Which? The opinions expressed are his own.-

Microsoft’s Windows operating system has been frustrating and delighting computer users in almost equal measure since it was first debuted by the software giant first in 1985. Fast forward through nearly a quarter of a century of powering the majority of the world’s personal computers, and Windows is about to hit another milestone.

Windows 7 launches on October 22, worldwide, and it’s safe to say that, as a firm, Microsoft will be collectively crossing fingers and toes that shoppers flock to the new version.

The successor to its Windows Vista operating system, Windows 7 promises to be faster, more reliable and make computing simpler than ever – so much so that like a proud parent, Microsoft hosting worldwide coming-of-age parties to help launch Windows 7 onto PC desktops worldwide.

Yet the key question is whether consumers, already stung by what many found a problematic Windows Vista, are as willing to take a punt on this latest version.

Certainly, it’s chalking up record sales – and Windows 7 has overtaken Harry Potter and the Deathly Hallows to become the biggest grossing pre-order on Amazon.co.uk of all time, and the online store says demand for the new operating system remains strong.

So why are shoppers pre-ordering in droves? Partly, it’s because Microsoft fumbled the ball with Windows Vista, leaving some users frustrated and fed-up with an operating system that felt sluggish and crash prone. A chance to jump to a shinier ship is welcomed. Partly, last time lots of people stayed away from the Windows Vista party following negative reports, remaining with the perfectly functional Windows XP instead.

The surge in sales tells only part of the story, however. Which? has talked with shoppers who tell us they are confused by Microsoft’s different versions (with six different prices at the last count), and there are lots of questions around whether the upgrade really is worth the hassle.

Certainly, a lot of the features seem fairly cosmetic on the surface, and some will appeal to only a handful of users. If you’re one of the chosen few to own a touchscreen PC and monitor, then the new multi-touch features in Windows 7 will have you clapping (and pinching and swiping) your hands with glee as your monitor turns into the equivalent of an outsized Apple iPhone.

Other features – such as easier home networking and interface tweaks to make navigation simplier are all good, but seem slight. Rather, Microsoft has been significantly reworking the technology that happens under the hood of Windows, making it less crash prone, faster, and hopefully a better experience.

If you’re happily using Windows Vista, though, then there really isn’t a compelling reason to upgrade as the new features are hardly lengthy.

And if you’re using Windows XP, then Microsoft has a different message for you: your PC is unlikely to run Windows 7 well, and you’ll have to fork out for a new computer. That’s an expense in these economic times that many consumers might find a little tough to swallow.

And, finally, amidst all Windows shopping it’s easy to forget that most new operating system launches are hit with bugs, glitches and incompatible software. That’s normal, but not any less frustrating.

So, if you are looking longingly through the Microsoft-shaped window, our advice is clear. Resist the temptation to upgrade straight off the starting blocks and wait for Microsoft and other software makers to find and fix the niggles and bugs, then feel free to jump in to Windows 7.

Microsoft may be the only company with the wherewithal to challenge Google’s Internet search dominance head on, but a number of firms are trying to outflank Google with services that handle aspects of search not covered by Google’s index of Web pages.

Aardvark - a firm whose cofounders include two ex-Googlers - is pushing something it calls “social search.”

Instead of looking at Web pages to find answers to search queries, Aardvark’s service taps a person’s network of social contacts. Ask Aardvark for anything from restaurant recommendations to home improvement tips, and the service will relay the question to Facebook and Twitter friends who have identified themselves as “experts” on various topics.

The service, which has earned praise from the New York Times’ David Pogue and other tech bloggers, was launched as a beta version earlier this year but accessing Aardvark required using instant messaging software or an iPhone app.

On Wednesday, the company put the search box directly on a website - vark.com - making its social search service more accessible to a larger pool of people.

Like the so-called real time search engines popularized by Twitter, Collecta and OneRiot, Aardvark represents a still small, but potentially dangerous trend for Google: Much of the content that flows through these new types of search services is not necessarily accessible by Google’s search engine.

Google is trying to address the situation by reportedly licensing the Twitter data feed. As more newfangled forms of search emerge, Google may find itself having more such talks.

For two of the Web’s newest sensations, September was not a good month.

The robust growth that Twitter and Microsoft’s Bing search engine enjoyed in recent months appeared to come to an abrupt halt last month.

Twitter, the microblogging service cherished by everyone from Shaq to Al Gore, saw its growth stall in September — at least in terms of U.S. visitors to its Web site.

The number of unique visitors to Twitter’s site in the U.S. reached 20.89 million in September - virtually flat compared to the 20.83 million visitors the month before, according to the latest comScore data.

As the blog TechCrunch pointed out on Tuesday, Twitter’s flat September came as Facebook, the world’s No.1 Internet social network, lured more than 3 million additional unique visitors to its site that month.

Of course, Twitter’s growth is still up a whopping 1,703 percent on a year-over-year basis. And the comScore numbers don’t tell the whole story, since many Twitter users access the service through third-party applications and thus would not be counted as unique visitors to the Twitter site.

But in the wake of the $100 million funding that Twitter recently secured at a $1 billion valuation, the new data is sure to raise questions about whether the service has peaked.

Questions are also probably in the air at Microsoft, as the software giant’s efforts to take on Google in search appear to be losing steam.

After picking up decent market share every month since its June launch, Bing grew its share by a meagre 10 basis points last month. According to comScore, Bing’s share of the U.S. search market grew to 9.4 percent, versus 9.3 percent the month before.

Google widened its lead to 64.9 percent share, from 64.6 percent in August, while Yahoo fell to 18.8 percent from 19.3 percent the month before.

For Bing, gaining 10 basis points is better than losing ground, which is what StatCounter, another Web measurement service had claimed happened to Bing in September.

But after spending a reported $100 million to market Bing, Microsoft may now need to find new ways to pump up interest in its search engine.

Microsoft has adopted a tough mantra for an age of austerity, arguing that innovation must take a back seat to cost-cutting and productivity gains when it comes to selling technology.

"Things have come down. I see them staying down and slowly growing," Steve Ballmer, Microsoft's chief executive, said today in a speech to British business leaders.

But does Microsoft's "New Efficiency" slogan describe the future of the technology industry?  Or just the software giant's own subdued outlook?

In recent years, Microsoft has settled into managing mountains of cash and established customer relationships in late middle age. Its share price has also been less than dynamic, down 30 percent since the beginning of 2008.

But instead of making big bets on future growth, Ballmer contends that  innovations must be funded based on their prospects for helping customers become more lean and efficient. The company recently froze funding for research at $9.5 billion -- still the world's largest such budget.

"I believe the new normal requires a new kind of efficiency built on technology innovations that enable businesses and organizations to simultaneously drive cost savings, improve productivity, and speed innovation," Ballmer argued in a manifesto published last week.

Ballmer acknowledges that the "New Efficiency" is partly a marketing message to underscore the potential productivity benefits of Microsoft's upcoming products -- the next version of its operating system Windows 7 and Exchange Server 2010.

Microsoft suffered its first-ever drop in annual revenue during its fiscal year ended in June -- a decline of 3 percent. Wall Street forecasts revenue growth of just 1 percent in revenue for fiscal 2010 and flat to modest growth of 5 percent in profits in the coming year.

But the company insists that there is a silver lining in its new focus. Refocusing technology innovation around efficiencies can help job growth, taxes and the creation of small businesses, Ballmer says.

Microsoft recently commissioned market research firm IDC to study how spending on technology and jobs compare with the economy at large in 52 countries around the globe.

Technology spending in the European Union is forecast by IDC to grow by 2.1 percent and employment increasing by 559,000 jobs between 2008 and 2013. By contrast, overall gross domestic product and employment in the EU is set to decline slightly.

The IT sector will create 5.8 million jobs worldwide over the next four years. Even in the European Union, where economies are still in decline, technology spending is set to rise and create more than half a million jobs by 2013.

Still, there will be no more innovation for its own sake, Microsoft says. New technologies will be funded from savings wrung out of less efficient ways of doing things or they won't survive.

Microsoft's message is in tune with times of slumping economic growth and organizational budget-cutting. But it is also a convenient one for a company that may have run out of disruptive new ideas.

You can read some of Eric's recent columns here.

(Photo credit: Reuters/Eric Auchard)

If you want to take a bite out of Apple’s piece of the staggeringly huge (but difficult to quantify in $$$ terms) smartphone market pie, you’d better either have the magical new “thing” or be willing to spend to buy it.

As Anupreeta Das reports, Palm – one of the stalwart originals in the mobile handset space -- has remade itself into a terrific target with the success of its Pre. Palm’s stock got a jolt this week on talk that Nokia could be considering a bid. But as she explains, Palm may prove to be too pricey a purchase, even for those with deep pockets.

Since introducing the Pre, Dell, Microsoft, Nokia and Motorola have been mentioned as possible suitors. If one of these cash-rich companies was to bid for Palm today, it would be targeting a stock that has quadrupled this year. Complicating matters, “details on how many units it has sold are skimpy, making it difficult to value the success of Palm's turnaround story,” she reports.

Palm's market capitalization is $2.4 billion. Based on the average 34 percent premium that technology, media and telecommunications companies have been sold for this year, according to Thomson Reuters data, this means a price tag of about $3.2 billion.

Dell is already in the early stages of buying up Perot Systems, but will still have nearly $7 billion in cash on hand should it choose to go on a spree. Microsoft, while a cagey customer, as shown in its dealings with Yahoo, has buckets more. For big tech players, the price itself is not the problem.

“To them, Palm is a thousand-dollar used model locomotive. Now you have to buy the other cars, and the tracks, and fake trees, etc. You have enough to pay for it, but you don’t even know if it works properly,” said a guy here at Reuters when the subject was being kicked around.