The secret Facebook war

The Microsoft/Facebook deal has been heralded as one of the most astute moves by Microsoft, a game winner for the largest software developer, at the expense of its archrival Google.

Microsoft gets more than just a bit of Facebook according to CNNMoney.

The two part Facebook deal gets Microsoft exclusive access to advertising on Facebook, not only in the US but also worldwide.

The two deals, being separate, mean that Microsoft is going to invest in Facebook AND pay Facebook for displaying adverts on the website.

Commentators however have questioned whether Microsoft is going to provide hard cash or "funny-money", like Microsoft products, service contracts, consulting fees etc.

Although significant portions of the agreement are still kept secret, we can expect Facebook to become Microsoft's poster child in a near future.

Furthermore, whether Microsoft's gain is Google's loss in this case is something that ought to be seen.

One variable that was left out of the equation is the fact that Google owns Orkut, which is still one of the more popular Social networks out there, sitting just behind ...

Facebook on Alexa's ranking.Even more surprising, Google does NOT display any adverts on Orkut and has been strangely discrete with regards to any major developments.

While Myspace, Friendster and Facebook have all announced API for their networks, Google has yet to launch anything concrete, although there are rumours of a possible API launch on 5th of November.

Expect 2008 to be the year when Google pushes Orkut very hard. A USD 250m Google Research and Development Investment in Orkut, coupled with an Orkut Link on Google's main page and Ad links on Orkut could suddenly make Facebook appear over hyped and inflated.