In an recent post on the Yahoo! search blog, the Yahoo! and Microsoft Search Alliance team announce that later this week we would be seeing "Powered by Bind" on the organic search results pages of Yahoo! search.

About a month ago Yahoo! made the announcement that they had begun testing this merger in the U.S. and Canada markets. This transition will mark the move to a Bing powered Yahoo! search.

The post goes on to say that tests will begin to transition paid search accounts this week.

Yahoo! recently announced they are in the testing phase of have Yahoo! Search results powered by Microsoft. Initial testing will only provide the Microsoft powered results to about 25% of the U.S. search traffic on Yahoo!

During this testing the user will not notice a difference in the listings powered by Yahoo! versus those by Microsoft; however, other layout tests are being conducted with this Microsoft test. The near future will also see Microsoft powered results making it to Yahoo!'s mobile platform.

Following successful testing, Yahoo! states their timeline to roll Microsoft powered organic search results to all U.S. and Canada traffic in August or September of 2010. Paid search listings will following suite in October.

The “alliance” between Yahoo! and Microsoft was announced back in February of 2010.

What does this mean to you?

Users of Yahoo! will likely see more focus from the company on usability improvements and an effort to pitch Yahoo! has a complete launching point for all of your Internet needs. Less competition in search algorithms, but probably a smart business move for Yahoo! Time will tell.

UPDATE (7/29): Microsoft & Yahoo! deal went through - http://bit.ly/YDU5n.

As reported by 247wallst.com, sources for investment house ThinkEquity consider a Microsoft deal with Yahoo! to be "imminent". Other sources beyond ThinkEquity speculate this deal to be worth $3 billion upfront to Yahoo!.

A Microsoft purchase of Yahoo! search and Yahoo! search advertising would provide the new Bing.com with an incredible boost in search market share. comScore reported Google's US June search share at 65%, Yahoo! at 19.5%, and Microsoft at 8.4%. So a Microsoft purchase of Yahoo would effectively give Bing.com just under 30% of the US search market. Is that enough to shore up Bing.com as true competition to Google?

A Bing powered Yahoo! search will boost Microsoft's current holdings of US search marketing share. But will it provide sustainable competition for Google? The beauty behind the "BIG 3" in search is having options. Granted, Google is the 800 pound gorilla, but don't we all skip to Yahoo and Bing.com from time to time? Healthy competition fosters growth and improvement. Maybe this will breathe some life into the start up search engines out there.

For the sake of search, I hope Microsoft is able to maintain its newly acquired position as THE major competitor to Google. Otherwise Google may dip into Yahoo!’s previously owned market share and separate itself even further from competition.