New news from the Internet search market comes with the unveiling of Bing search powering Yahoo Inc.’s website. The alliance between the two companies first took place 13 months ago, and now the transition is complete for Yahoo! in the US and Canada. Roll outs in other countries, and thus languages, are planned for 2011 and 2012.

From The Associated Press article,

By leaning on Microsoft’s Bing search engine, Yahoo plans to dramatically lower expenses and focus on other products as it tries to snap out of a financial funk that has depressed its stock price. Microsoft tried to take advantage of Yahoo’s problems with an unsuccessful takeover bid in 2008.

Now, Microsoft is hoping to get better at understanding people’s search requests as it picks up more traffic from Yahoo.

Of course, this sort of move will give Microsoft some extra leverage against the search juggernaught of Google. “That means that combined, Microsoft now owns 28.1% of the search market (as of July 2010’s comScore numbers), though that’s still less than half of Google’s 65.8% share,” cites a Mashable article on Yahoo! News. But this can also be a good move for Yahoo, giving them what they need to pull out of their own financial downturn—at least that was their initial incentive for getting together with Microsoft in 2009.

As stated in the article, powering Yahoo’s search will also bring Bing another data stream to help them develop a better context for search customers.  Microsoft has been doing plenty lately to spread the reach of Bing, from sky maps to Facebook.  The upset with Yahoo! Japan may be a hiccup in the overall goals of Microsoft, but this official step forward with Yahoo is taking both companies in the right direction.