Interesting move from Yahoo!
The net will be abuzz with news how Yahoo! is trying to get into the whole web 3.0 desktop \ web app delivery nonsense.
Basically Yahoo! is trying to stay within touching distance of Google. To be fair, Zimbra's application suite was more than slightly better than Google's, with the presentation app in particular stronger by far than anything else I've seen on the market.
We do have to remember that Yahoo! is still struggling in a variety of different ways, not least their inability to extract a decent value out of the inventory they are currently selling. For some reason they are concentrating on competing with networks to offer extremely cheap inventory whereas they should be leaving the networks to scrap over remnant inventory and spending their time selling their more upscale stuff.
I've still never had a salesperson try to sell me any of Yahoo!'s genuinely innovative sites - flickr, del.icio.us and the like. Yahoo! has proved adept at purchasing companies but it has yet to prove itself with the most important phase - the exploitation.