Facebook chat threat to Microsoft and Yahoo

 

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By Barry Collins

Posted on 7 Apr 2008 at 09:36

Facebook has launched its online chat service, throwing it into direct competition with the instant messaging services from companies such as Microsoft and Yahoo.

Facebook Chat - which is being gradually rolled out across the social networking site's membership - allows members to instantly strike up a private conversation with one another, rather than rely on email messages or wall posts.

A small Chat bar appears at the foot of the browser when a user log-ins to their Facebook account, allowing them to message anyone on their Friends list who is currently online - avoiding the need to create a "buddy list".

Unlike most instant messaging applications, Facebook's service doesn't install any client software, meaning its accessible from any internet-connected PC.

"Chat is by no means a new concept, as instant messaging systems have been around for over a decade," says Josh Wiseman, engineering lead at Faecebook on the company's blog.

"But just as other features on Facebook have allowed friends to communicate more efficiently than before, we hope Facebook Chat will make it easier to connect instantly."

Messenger threat

Facebook's Chat clearly poses a threat to other instant messaging services, not least Facebook investor Microsoft's Windows Live Messenger.

Just a fortnight ago, Microsoft launched a new website that allows people to add their Facebook contacts to Windows Live Messenger.

The Microsoft website is designed to share contacts with five social networking sites, but only worked with Facebook at launch. Now it's obvious why Microsoft pushed the service out with such haste.

Instant messaging has long been a stronghold for Microsoft and its potential acquisition Yahoo. And Steve Ballmer's letter to the Yahoo board this weekend makes it clear that Microsoft is aware of the threat, warning that "during the two months of inactivity" since Microsoft first issued its bid for Yahoo the "internet has continued to march on."

Perhaps Microsoft would be better off investing its considerable warchest in Facebook rather than Yahoo?