As we were about to report on how costly it might affect Mozilla on not renewing the Google contract where Google stays as the default search engine on the Mozilla Firefox web browser, up came an update about the deal having been signed on for the coming three years!
Though this has happened at a later stage because this deal usually is renewed before the expiry date, it means that there were some last minute adjustments from the Mozilla team about not jumping with Bing and instead sailing with Google from whom they get 84% of their operating revenue [more than $100 million].
Mozilla Firefox has been spending a lot on its Software Development wing with the figure rising from $31.3 million in 2008 to $62.8 million in 2010, more than doubling itself. And with the implementation of that headache, also known as the Rapid Development Cycle which releases a new Firefox version every 6 weeks, Mozilla indeed needs more finance. And with Bing, it didn’t seem to be a sweet story at all, though Bing has been rising from the past few months and strengthening its position as a Google competitor. But search being Google’s core skill, Mozilla may have thought that it is safe to continue with Google as for now.
Though the Mozilla CEO Gary Kovacs characterized the deal as “significant and mutually beneficial,” but with the deal having been signed after crossing the expiry date of the previous one, it certainly raises many a doubts in the minds of users who strongly feel that this time, the terms may be different. Much wasn’t disclosed at the official blog post from the Mozilla team about this development.
Do you think that this was a needed step? Or did Mozilla err ?