Google Puts Microsoft on Its Heels
Google Puts Microsoft on Its HeelsGoogle Puts Microsoft on Its Heels
Google Puts Microsoft on Its Heels
By Cody Willard
RealMoney.com Contributor
8/25/2005 7:58 AM EDT
Click here for more stories by Cody Willard
This column was originally published on RealMoney on Aug. 24 at 9:00 a.m. EDT. It's being republished as a bonus for TheStreet.com readers.
With all the hullabaloo about Google's (GOOG:Nasdaq - commentary - research - Cramer's Take) huge growth and outsized market cap, the most common refrain that I hear in discussions of Google is that it's in trouble because Microsoft (MSFT:Nasdaq - commentary - research - Cramer's Take) is going after Google's business.
My answer to that is, has been and will continue to be: Flip it. Simple math shows that Google's the hunter here, and that Microsoft, not Google, is the company on the defensive.
To make the point, let's look at where Microsoft is going after Google and then where Google is going after Microsoft. The numbers show that Google has far more to win in these battles, and Microsoft is shouldering far greater risks.
Gates Grapples With Google
Microsoft has spent billions of dollars developing and buying search technology, which is Google's core business. And after all those billions of dollars spent on ...
Let's review here. Google's dominant in two hugely profitable and very fast-growing businesses. This dominance comes in markets that are currently measured in the billions of dollars in total sales, which will quickly become double-digit billion-dollar markets and perhaps even into hundreds of billions of dollars in another decade or so. Microsoft, meanwhile, is doing its best to stay relevant in these markets and hoping (praying) for market-share wins.
Google Targets Goliath
So how about where Google's going after the Softee?
You might have noticed that Google rolled out a new application for download that they call the "SideBar." I downloaded it upon availability and noticed ...
0 Comments:
Post a Comment
<< Home