More Microsoft/Google analysis
The Google campaign against Microsoft’s bid, to some degree, underlines their broadening competition. They compete not only in Internet searches and advertising, where Google continues to gain market share, but also in software.
It is an assault that is just getting under way. But Google has begun offering Web-based word processing, spreadsheets and presentation software as an alternative to Microsoft’s lucrative desktop programs. Google’s online programs are free, or $50 a user for companies that want technical support.
“That’s the dagger at the heart of Microsoft,” said Thomas R. Eisenmann, an associate professor at Harvard Business School and an author of the school’s case study on Google. “And that’s why Microsoft is so eager to have a response. It’s buying Yahoo to become a much more vigorous competitor in search and advertising, Google’s core business.”