Microsoft and Google Future
It's likely that Google and Microsoft will compete even more in the future. Both companies are expanding their core businesses. Microsoft is trying to gain ground online while Google creates services that fulfill the same functions as traditional desktop software. Both companies are on the lookout for potential acquisitions or partnerships to bolster their position in the market.
Neither company is in a bad position. Both have suffered losses as the global economy has gone into a decline. Both have had to make sacrifices and cut jobs for the first time in their respective histories. But both are still worth several billion dollars and continue to develop new products and services.
Google seems to have a great deal of momentum. The company has a reputation for innovation. It's famous for giving employees 20 percent of their work week to pursue special projects. Many of these special projects end up in Google Labs, a special section on Google that allows users to experiment with new services. Eventually, these services may graduate into fully-realized products from Google.
On the other hand, many Google services seem to be stuck in beta. Beta is the industry term for products that are in a testing phase -- they aren't yet in a finalized format and users may encounter bugs or other problems while testing the product. Google introduced Gmail in 2004. Five years later, the service is still in the beta phase. And despite multiple attempts at diversification, Google's search engine is its only breakout financial success. Ninety-seven percent of Google's revenue comes from online ads [source: Portfolio.com].
The public and corporate reaction to Windows Vista was a blow to Microsoft. The Windows operating system is a core Microsoft product. As more people learn about cloud computing and question the value of powerful personal computers, the company must adapt to the new market environment. Microsoft has several initiatives it has designed to capitalize on cloud computing. While the Vista problem may have put the company off balance, Microsoft hasn't been knocked down yet.
Competition may turn fierce on some fronts, but it looks like Google won't be dealing the death blow to Microsoft any time soon.
