Microsoft and Google Fight to the Finish

Google and Microsoft look to bury each other with damage to each being a certainty. Microsoft earns most of its revenue from two sources, Its Office software suite and Windows operating system licensing fees.

Google earns most of its revenues from paid search advertising. Both firms have been encroaching on each others territory and both will probably become weaker due to it.  Google launched its own suite of software via the web challenging Microsoft as the suite is offered at no charge creating some painful decisions for Microsoft.

 Google also announced it would be launching its own operating system for computer users and the system would be free as it tries to do what Microsoft has done to many competitors in the past. Offer services for free that would bury the competition as there revenue source dries up.

 Microsoft is fighting back however as it announced that there will be an online version of its Office suite available to compete with Google’s version. They have also stepped up their search engine presence with Bing which has been starting to gain market share on Google although it is too early in the game to know if it will be successful.

If Microsoft can gain market share and generate a greater share of paid search advertising revenue, it can put a dent in Google’s bread and butter. As each encroaches on each others territory, the costs to each will be painful but ultimately better for computer users around the world.

Your thoughts and comments are always appreciated.

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