Google Destroys Their Numbers

Once again, Google announced financials that are incredible.  If I’m on the exec team at Yahoo or Microsoft, I’m having a drink tonight wondering what I’m doing wrong and what dramatic moves I can make to try to regain some momentum and take some of it away from Google.  Hint – publishers, publishers, publishers.

  • Feld, are you sure that Microsoft is really a Google’s competitor?
    MS says IBM is. Beside that, Microsoft stuff is application centered, Google is content centered.
    It would take long to define exactly this difference but I think I was clear.

  • Yes. A number of the senior people I know at Microsoft are obsessed with Google. MSN – which is a very large business – is a direct competitor. Live – which has many “Google knock off” features – is a direct attack. And much of the Microsoft infrastructure R&D is aimed directly at the same business.

  • Tom Higley

    Some may not believe Microsoft sees Google is a competitor (though I think Microsoft would be foolish not to see Google in this light). Google certainly knows it is competing with Microsoft. And this is certainly about more than content vs. applications. Witness Google’s addition of a growing number of applications to its arsenal, from email and calendaring to spreadsheets. Google used to be about the fastest way to get from A to B (search); but it is also fast becoming the fastest way to get something (eventually anything) done.

  • Microsoft competes with many companies—Apple, Sony, IBM, the open source movement, etc. — on various product / service lines. Google and Yahoo continue to be Microsoft’s prime competitors in online services. Google took the lead with search and leveraged its reach to introduce a whole array of online tools: personal calendars, word processors, spreadsheets, etc.

    Microsoft’s biggest ‘cash cows’ are its Windows and Office product lines. Google’s Docs (Writley) and Spreadsheets services constitute disruptive technologies—simple and affordable services that threaten the substantial profit margins that Microsoft derives from its Office products.

    Online services represent a fundamental shift in the software business. Traditionally, desktop applications have resided on user’s computers. End-users were required to update these applications frequently, whenever a new release was available from Microsoft. With Google offering online word processing and spreadsheets, these applications now reside on a Google’s server. This allows the end-user to invest in a decent computer, operating system and fast, reliable internet access and avoid frequent updates, crashes, and related expenses.

    Releasing new features, maintaining /updating the application, and ensuring application reliability on the server are now Google’s responsibility. This clearly erodes opportunities for both of Microsoft’s core businesses (Windows and Office). I think that online applications will have a limited market-reach and will not obsolete all PC-based products in the next decade or so. Clearly, Google’s initiatives in online services and market share in search/content/information are cause for worry at Microsoft.

  • The Internet is to the OS of tommorrow. Look no further than your computers BIOS to see where the OS business is going..

    Microsoft knows this and this is why they are obsessed. First they lose the applications to google, then they lose the OS business because it no longer matters what OS you have.