Comments on: Google chase could trip up Microsoft

Analysts say Redmond's push into services is needed--but it risks rendering obsolete the company's ultra-profitable way of doing things.

[Roman12]

Google chase could trip up Microsoft

At least the software released by Google is done right the first time, and there are no weekly patches or updates for it. :)
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R.K.
http://www.Remove-All-Spyware.com/

[Yumla]

You have it backward

1. Service model allows MSFT (and Google does this too) even more frequently w/o having to tell you.

2. Service model will be even more profitable for MSFT. Look at the gross margin of Google vs MSFT; and think of all places because of piracy where MSFT doesn't get paid today. The services action is going to be in small and lower-middle size businesses -- not an area where MSFT dominates today.

[Don_Dodge]

Microsoft/Google competition is great for consumers

I am reminded of a quote "In a fight between a grizzly bear and an alligator, the terrain determines the winner". Meaning, each company has its strength and position in the market. The company that crosses over to fight on the others turf is likely to lose...but probably not die. These giants are too strong and too smart to battle to the death over any one market. It will be a battle for first place versus second place, with each making money in its own way.

The competition will be interesting. Each company will strive to protect its base products and revenue streams while innovating with new products and business models. The parrying back and forth will be a battle of strategic business decisions and technical brilliance.

I wrote a blog about this today. See this for the full story http://dondodge.typepad.com/the_next_big_thing/2005/11/microsoft_vs_go.html

What a slant--worried?

Why are these analysts "worried"? Do they have a stake in MS continuing to make huge profits? Do they own MS stock? Does the author own MS stock?

Furthermore, it's not MS' "race to compete with Google" that will obsolete the profitable MS business model. The Internet and open source software have already obsoleted the MS model. MS can change its model or get left in the dust. The article makes it sound as though there is a third option: MS can stick to its shrinkwrap and expensive licenses, and continue to make big bucks. The article makes it sound like MS is on some foolhardy mission to cut its profits just so it can compete with Google.

The MS era is over, whether MS tries to compete or not. The article looks like it was written by an MS sympathizer who's so sad to see those massive profits become history.

[Bob Brinkman]

I'm pretty sure

Analysts "worry" about these sort of things, because if any company (regardless of the industry) that was the size of Microsoft screwed themselves with a new business strategy it would have a detrimental impact on the economy.

I know it is fun to play dress up and pretend sometimes but there is no global conspiracy here. --For the simple fact that no one at the top cares about the people at the bottom.

And Google's foray into

TV, Books, Open Office, Magazine advertisements, Wi-Fi, etc. appears fine to analysts! Pulleese.

Services aren't always free.

Just because some services can be delivered via advertising supported activity doesn't mean that all things should be. If I'm paying employees to work on documents I don't want them clicking on ads while there working. Also, what about security? availability? What about data interopability? Also, office can be customized via automation. And if you want a cheap spreadsheet, etc. just buy MS works. The bottom line is small businesses need productive employess and that doesn't always come from the lowest priced solution.

[rcrusoe]

Selling services that should be free?

If MS wants to get into the service business, thats all well and good. But a service "for keeping Windows machines healthy and virus-free" sounds more like a protection racket than anything good.

There's no way MS should make their customers pay extra because they are unable or unwilling to fix problems in their software.

Besides if this "service" becomes a profit center, what would be their incentive to fix anything?

[Mister C]

Not to worry.

M$ is yet to flourish in any endeavor where it could not use it's monopoly position to crush the opposition. The truth is, M$ (like ATT) simply cannot survive in a market where it has real competition.

[CaughtThinking]

M$ flourish?

Are we talking about the same Microsoft? I remember them wiping the floor with Netscape and convincing Palm (another recognized leader in an area m$ had no previous expertise) that they should run windows on their next device.

On the contrary, given that track record, I almost expect a "powered by MSN search!" button on googles homepage within 3-5 years.

[hokuwho?]

Microsoft and Google don running shoes.

Interested to see if Dr. Spencer Johnson's "Who Moved My Cheese" lessons apply to these moguls.

[kentsin]

Microsoft dont lead

Ain't MS just good at chaising others?