Google Bamboozles Microsoft
Google is in the business of monitizing search. They therefore must strategically defend their search dominance. Microsoft represents perhaps Google's biggest strategic threat because they are committed to search as a category (we will examine why this is so at the end of this post). Microsoft is using its proven approach of continuous improvement to slowly, inexorably get very good at search. They have the resources to keep at this for as long as it takes and they are relentless.
The Google strategy to defend against the Microsoft search threat is to attack Microsoft's strength, Microsoft Office. Microsoft has two overarching strategic imperatives: defend Windows and defend Office, so this forces Microsoft to shore up its strength with resources that might otherwise go to improving search.
What I love about the Google brain trust is how cleverly, almost playfully, they have executed this strategy. Google has collected bits and pieces that seem like they could be assembled into an Office competitor. They have email, a calendar, a spreadsheet and, with the acquisition of Upstartle, the Writely word processor. Add a heaping tablespoon of Google mystique, a dash of AJAX, stir briskly in the presence of a pundit, bake in a slow oven and, behold, an Office-like suite starts to take form. It is never quite ready to eat, but it sure smells good!
Never mind that the ingredients are, in the main, half-baked. The mere threat of Google Office added to the existence of Open Office, has been enough to push Microsoft into a full commitment to some sort of online version of Office, an Office Live. Defend Office at all costs, please, Ray Ozzie! The amusing thing is that Google has pulled this off at very little cost, almost as a frolic.
To add to the fun, the mere rumor that Google might somehow be secretly working on a browser-based desktop thingy that would somehow make the underlying OS irrelevant, has created the specter of a threat to Windows. Google does nothing in this regard and the threat emerges! What magic.
I think Google may keep nudging its Office threat along, just enough to keep Microsoft worried. I think the Google Windows threat rumor will thrive without any effort on Google's part at all.
As for why Microsoft cares about search, there are two major reasons. Regardless of how they stumbled into search with MSN during their Internet portal confusion phase, Microsoft is now convinced that search is an essential part of computing, thus of Windows and Office. As Google has demonstrated, it also can be a fast growth category for revenue, where Windows and Office are at best slow-growth.
Google, meanwhile, focuses resources almost exclusively on its fast-growth opportunity, increasing the breadth, depth and use of its search machine, and extending its advertising model.
Copyright © 2006 Philip Bookman
Technorati: Google Microsoft
The Google strategy to defend against the Microsoft search threat is to attack Microsoft's strength, Microsoft Office. Microsoft has two overarching strategic imperatives: defend Windows and defend Office, so this forces Microsoft to shore up its strength with resources that might otherwise go to improving search.
What I love about the Google brain trust is how cleverly, almost playfully, they have executed this strategy. Google has collected bits and pieces that seem like they could be assembled into an Office competitor. They have email, a calendar, a spreadsheet and, with the acquisition of Upstartle, the Writely word processor. Add a heaping tablespoon of Google mystique, a dash of AJAX, stir briskly in the presence of a pundit, bake in a slow oven and, behold, an Office-like suite starts to take form. It is never quite ready to eat, but it sure smells good!
Never mind that the ingredients are, in the main, half-baked. The mere threat of Google Office added to the existence of Open Office, has been enough to push Microsoft into a full commitment to some sort of online version of Office, an Office Live. Defend Office at all costs, please, Ray Ozzie! The amusing thing is that Google has pulled this off at very little cost, almost as a frolic.
To add to the fun, the mere rumor that Google might somehow be secretly working on a browser-based desktop thingy that would somehow make the underlying OS irrelevant, has created the specter of a threat to Windows. Google does nothing in this regard and the threat emerges! What magic.
I think Google may keep nudging its Office threat along, just enough to keep Microsoft worried. I think the Google Windows threat rumor will thrive without any effort on Google's part at all.
As for why Microsoft cares about search, there are two major reasons. Regardless of how they stumbled into search with MSN during their Internet portal confusion phase, Microsoft is now convinced that search is an essential part of computing, thus of Windows and Office. As Google has demonstrated, it also can be a fast growth category for revenue, where Windows and Office are at best slow-growth.
Google, meanwhile, focuses resources almost exclusively on its fast-growth opportunity, increasing the breadth, depth and use of its search machine, and extending its advertising model.
Copyright © 2006 Philip Bookman
Technorati: Google Microsoft
Labels: software strategy
posted by Phil Bookman at 9:32 AM
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