I have been reading these articles about the failure of Microsoft merging with Yahoo and can’t help but think if Microsoft really is in trouble. Not so much in the short term but in the long term. Rob Enderle, the President of Enderle Group, believes that Google’s strategy is to kill Microsoft. Google has been slowly taking over the Windows desktop with Google Search, the Google Toolbar, and the Google Sidebar. They have been adding features to the Windows XP platform that disinterest users from upgrading to Vista. Not to mention, Google Docs, allows users to freely create and distribute documents/spreadsheets that they normally would have to pay Microsoft hundreds of dollars to purchase their Office Suite. Furthermore, Google diluted the Yahoo deal by allowing them to advertise in the Google ad network during the Microsoft-Yahoo fiasco. It was like Google gave Microsoft the finger and said go ahead, buy Yahoo! But Google wanted to delay the merger for as long as possible, hopefully either ending in a hostile takeover or take a serious drain on Microsoft as the deal falls through. All the while, Google is trimming Microsoft’s revenue streams down to give Microsoft no breathing room while they would be busy allocating all of their resources merging Yahoo and Microsoft together.
Google will need to take on Microsoft’s Enterprise sector head on by innovating new suites to run corporate networks. Although they have been knit-picking the Windows desktop and Office suite market shares, the Enterprise is where Microsoft also gets a big chunk of profit. Google would need to attack on all fronts in order to succeed taking out the giant. But what would that mean for consumers and businesses? Usually when you have one big corporation with little competition it invokes greed and laziness. I hope Google and Microsoft can survive together as competitors to help drive the market instead of shifting a technology monopoly from one company to another.