In a recent, interview with Charlie Rose on the PBS Network on
September 2010 Google CEO, Eric Schmidt said that Microsoft is Google's
biggest competitor. Some technology analysts believe that Google CEO,
Eric Schmidt is right by saying that Microsoft is the company's biggest
rival. The truth is that Google grew rapidly and other technology
companies did not quickly notice its rapid growth until it hit them in
the face. With market capitalization of $156 billion, annual revenue of
about $25 billion dollars and share price of over $500, Google is indeed
a technology giant. The fact suggests that since Google attained
success as a search engine and search remains 96% of its revenue stream
the company has been looking for growth opportunities.
There is a
widely held view that in the process of seeking growth opportunities and
diversifying its income stream Google has often stirred itself into
trouble. In 2007 Google ran into trouble with another tech giant - eBay
which accused Google of trying to lure away some of its top sellers.
Mountain View was attempting to lure the top eBay sellers to use its own
product -Google checkout -a competitor to PayPal. As a result, eBay
pulled its ads from AdWords as a sanction against Google. At that time
eBay was one of Google's top advertisers spending $26 million monthly
($312 million annually) on Google AdWords in the U.S. market.
In
another front in the battle against Mountain View, VIACOM owners of MTV
got entangled in legal battle with Google over alleged copyright
infringements on the Google owned website- YouTube which VIACOM had lost
in its acquisition bid. The lawsuit against Google, which was seeking
$1 billion in damages, was seen as a reprisal move from VIACOM, which
was outbid by Google in the quest to acquire YouTube.
Off course,
there have been battles with Apple since Google ventured into the phone
business with Android OS, Android phones, G1 and Nexus 1 phones. The
facts suggest that Google's decision to venture into the phone business
partly led to the exit of Eric Schmidt from the Apple board. In
addition, Apple filed a trademark infringement suit against HTC the
Taiwanese company that makes NEXUS 1 for Google-a proxy war.
Furthermore, Apple then let Microsoft's Bing -Google's main rival to
become the optional search engine on the Apple iPhone. Also, when Google
outbid Apple to acquire Admob Apple shut them out of iAd- the new app
based search platform they were developing. Even though Google and Apple
are reportedly mending fences, the relationship between the two
companies is not as cozy as it was five years ago. Earlier this year
Oracle joined the war against Mountain view by filing a lawsuit against
Google's Android for infringements of the JAVA code. There is a widely
held view that Microsoft and Apple may indirectly benefit from the
Oracle lawsuit.
However, the biggest challenge for the search
giant is the battle with Microsoft and is going to be one of the
toughest Google will ever face. Google started stirring trouble by
building operating systems like Chrome for the desktop PC's and offering
it for free and seeking to degrade the value and importance of
Microsoft's top cash cow- Windows operating system. In addition, Google
ventured into web browser development and with Chrome, they seek to
dislodge Microsoft Internet explorer as the leading web browser.
In
addition, Google DOCS is another venture that is pitting Mountain View
in direct competition with Redmond. Microsoft has come roaring back and
internally said to be threatening to kill Google. The development of the
Bing search engine is Microsoft's strategy for dethroning Google as the
number 1 search engine. The fact that 96% of Google's income comes from
search has made many industry chieftains like Yahoo CEO, Carol Bartz
suggest that the search giant will be in trouble if the does not
diversify its revenue stream.
The battle with Microsoft will be
the toughest that Google will ever face because Microsoft is a company,
which unlike Google has a diversified revenue stream, and is targets and
destroys competition. Remember, the browser war of the 90's that led to
the demise of Netscape. In addition, Microsoft dominance of the desktop
PC's with their Windows operating systems and their emergence as the
biggest technology company over the last 15 years shows that the company
is formidable. There has been a lot of debate as to whether Google will
kill Microsoft or if Microsoft will kill Google. The truth is that in
the Google- Microsoft face off Google is more vulnerable.
Is Microsoft The Biggest Competitor Of Google?
Google's emergence as the largest search engine has brought it in
direct competition with other internet firms,search engines and
technology companies especially Microsoft. Microsoft has spent hundreds
of millions of dollars building the search engine Bing. Bing has been
getting positive reviews and has witnessed growth in market share since
it was launched in 2009. Microsoft's Bing partnership with Yahoo is
expected to help grow its search market share and reduce the influence
of Google search. In this article, Henry Aladiume CEO/President of
Elnegy LLC reviews Microsoft's strategy for undermining Google search.
Elnegy LLC is a consumer electronics technology company based in
Houston, Texas, United States. You can visit [http://www.elnegy.com] for
top home stereo systems, car stereos, flat screen TV's and updated
content on technology.
Article Source: http://EzineArticles.com/5105976
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