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Microsoft may be older and bigger than Google, but it's Microsoft nipping at Google's heels and not the other way around, according to two Gartner analysts who closely follow the moves of the companies.
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.
Microsoft's After Google's Ad Business [news.com.com]
While Google has been the king of contextual ads, that doesn't mean someone else can't take over one day...
G takes a big chunk of the pie. Giving a higher percentage of the revenue while finding a way to attract huge quantities of advertisers would be the way to break their market share.
The analyst is underestimating Microsoft's latest patent deals [news.zdnet.com...] and upcoming lawsuits.
The analyst is also underestimating the release of Windows Vista and Internet Explorer 7. Since then, I've seen in my Web statistics Google's usage declining and Yahoo-MSN gaining more.
Analysts should not forget what Bill Gates said in 1991: "You have to know when to hold back. If the takeoff curve in something is very gradual, then the early guys who pay extra money and take extra risk aren't protected."
Was Gates referring to guys like Sergey Brin and Larry Page?
With those kinds of numbers you'd think they were in the search advertising market. Obviously DCLK was easily within reach but MSFT must have seen something better to invest in.
Why don't they?.....go figure....I would, If I were in their position!
They are obviously playing a more cunning role...I assume.....or maybe they are just stupid!?
They might be scared.....he who owns the browser owns the Internet.....
They might be slow playing their aces.....Poker players will be familiar with this stategy!
The financials might not add up to MSFT......
It worries me a tad...why don't they move....they know something I don't......that has to be scary to any competitor!
If I was a competitor to MSFT right now I would be panicking......why the heck aren't they declaring war? They must have an end game I can't see?
first, they need the traffic to deliver the goods. Second, they will take a loss by paying a lot more than G for a year or so.
But then MSFT skipped on deal with aol, doubleclick, myspace so, I am not sure. I mean skipped since they had the cash to outbid google.
Microsoft never did anything new, they've always capitalized on other people's ideas. That is the definition of the company. Nothing new here.
Very true. However, as already noted, Google is not much different.
The most of their (childlish) patents are nothing but a particular way to do things (e.g. rankings), which don't have to be superior or ultimate. It's just their way.
The key of their success is the simple trust, which was almost extinct in the corporate world.