Battle of the Tech Titans

Google and Microsoft are going head-to-head, and they are going for the jugular.

ComputerWorld stated in the July 6/July 13, 2009: “Google Set to Wage OS War with Microsoft.” Wired wrote in August 2009 issue according to CEO Eric Schmidt, Google is the “anti-Microsoft”.

According to Wired, the two companies are fighting for the title: King of Technology.

Here’s a quick breakdown:

	Google	Microsoft
Web Browser	Chrome (& FireFox distribution)	Explorer
Operating System	Android, Chrome OS	Windows, XP, Vista, Mobile
Business Productivity Suite	Apps Suite	Office
Search	Google	Bing
Online Advertising	Adwords, Adsense, Doubleclick	aQuantive

On one hand, Google is the undisputed master of the Internet delivering 78.5% of search results in the U.S. (versus 8.2% for Microsoft ) and pulling in $22 billion in revenue in 2008 for text ads. On the other hand, Microsoft owns the personal computer environment with 90% of the operating systems for all laptops and desktops yielding $16 billion in 2008 sales and $14.3 billion in 9 months for it’s productivity applications (versus Google which mostly gives away is email and other online applications); further Microsoft has 70% of the browser market to Google 2% for Chrome. (Wired July 13, 2009)

So is there really a full tech war going on or are Microsoft and Google just chipping away on the edges of each others territory, using so-called guerrilla warfare tactics?

It’s a little of each. Both companies are technology behemoths trying to be the king of the tech jungle. But they have very different approaches. Microsoft believes that computer software is the key to tech kingdom, while Google believes that the Internet is the path to people’s technology hearts.

Google is willing to give away software to challenge Microsoft on its home turf, and Microsoft is investing in its new search engine to erode the core strength of its competitor. It’s a jab for jab face-off where I would imagine we would continue to see the corporate fists flying for as long the two are standing.

From a strategic point of view, Microsoft has such a dominant position on our computers both in our homes and businesses, it is hard to imagine them being easily dethroned. Microsoft also has a war chest and the ability to replenish it to fight a darn good fight. But many companies have been smug and have lost to a determined challenger.

Google is coming out strong for its innovativeness and can’t turn down offer of free products. If the television business is any predictor of a winner-take-all, television’s advertising revenue built an incredible entertainment industry that we all enjoy and which still largely dominates today.

And now I think I will go watch 60 minutes on my big flat screen TV.

Battle of the Tech Titans