October 31, 2003

Yahoo dissolves enterprise products group

Enterprise offers to fade away while Messenger remains

SAN FRANCISCO - Yahoo is closing its Enterprise Solutions unit, discontinuing all products in the group aimed at business users except its enterprise instant messaging product, the company said Friday.

"We are going to focus our resources on Messenger and de-emphasize the other products in the enterprise solutions group," said Joanna Stevens, a spokeswoman for Yahoo in Sunnyvale, California.

Yahoo will phase out its business portal offerings My Yahoo Enterprise Edition and Yahoo Portal Solutions as well as the Yahoo Broadcast Solutions webcast services. Existing customers will continue to be supported, but Yahoo will stop selling the products and won't renew contracts that expire, she said.

Meanwhile, Yahoo Business Messenger, the company's most successful enterprise offering, will become part of the same group that produces the Yahoo Messenger consumer product, she said.

"The realignment of resources will allow us to better support our commitment to the development and distribution of Messenger," Stevens said. "We really do think that this realignment is going to give us good competitive advantage in the marketplace."

The reorganization at Yahoo started a few weeks ago. As a result, a number of people at Yahoo's offices in Sunnyvale, Dallas and Atlanta were laid off, Stevens said.

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