Posted April 26, 2007 10:23 am by with 6 comments

Tweet about this on TwitterShare on LinkedInShare on Google+Share on FacebookBuffer this page

Some interesting thoughts shared by two Gartner analysts that track every move of Google and Microsoft.

By offering free Web-based productivity applications, Google is looking for an additional vehicle for advertising revenue and trying to distract Microsoft from focusing on its own core search advertising business rather than hoping to grab Microsoft’s big corporate IT dollars, David Smith, a vice president and Gartner Fellow at research firm Gartner, said during a session at the Gartner Symposium ITXPO conference here on Wednesday.

Bottom line?

Google’s trying to figure out how to take some of the business away from Microsoft’s office products, while Microsoft is trying to figure out how to take a slice of Google’s search advertising business.

Could both companies drop the ball – losing ground in their own core competency – by focusing too hard on each other’s core business? In other words, could Microsoft catch Google in search, because Google is focusing elsewhere and can Google catch Microsoft in office products and software in the process?

  • In addition, with Google moving into Web Aps and demonstrating they will acquire to get there, they have fueled an incredible inflow of VC capital into the space. Sure, it would be great from a strategic point of view for Google to “own” the next version of Office, but if they can’t do it, wouldn’t it be great if it wasn’t MSFT capturing all that free cash flow to pump into an ad supported businesses?

  • Well, advertising revenue is extremely good for your cash flow, which building an app suite is more of a capital investment, so you can see both facets complimenting each other quite nicely.

    In truth, Google seems to run a tighter ship than Microsoft. This is just a humble opinion, but Google continues to amaze me with it’s speed of innovation while Microsoft promises a vision then takes ages to deliver.

    The next 5 years will tell …

  • I don’t forsee MSFT catching Google in search anytime soon.

    I also think Google is the one who is doing this the best. Their partnership with Intel is a great example. They are able to get in front of the larger businesses with AdWords and then can later go after them with their apps offerings.

    I just don’t see MSFTs idea to give credits to corporations whose employees use Live Search as being as beneficial. Credits won’t amount to much when they can switch over to Google and get the apps for free.

  • Pick your battles Goog. Office is the cash cow of your target. Change the target, stop trying to out-stare MSoft.
    Search isn’t the only game in town Microsoft. You’re crap at it, stick to what you’ve been superb at.

  • Pingback: Does Google’s Anti-Google Bomb Algo work? … Does it heck! on b10g()

  • I believe that Microsoft Office is there to stay. Google Office is fun for small application with no confidential data; there are to many security risks for business to allow the use of online tools like those offered by Google. Microsoft Office is integrate in many organizations and people are not ready to change for something else, even if it’s similar. I also believe that Microsoft may become a good number 2 for searching the Web (Google seems to be there to stay also).