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Yahoo! Groups functionality is a big reason that many users are comfortable and engaged with Yahoo! Failing to create similar community within MSN, Microsoft can engage these users.
Flickr is another high point in Yahoo!'s selection of Web services. Increasing mobile integration of Flickr, Mail, Calendar and IM have created a base of users who are loyal to Yahoo! as a portal, many of whom have been users for a decade or more.
Will be interesting to see how/if this affects approval of Google/Doubleclick deal.
Also will be interesting to see if a documents area would emerge to compete with Google Docs.