Disclaimer: This is all my own opinion and not the view of my employer.
I've been thinking about the battle between Microsoft and Google, lately. I've come to realize that I'm not sure Microsoft is approaching the battle with Google in the right manner. Microsoft has been very reactive to apps developed by Google and I think it's giving Google the advantage.
Microsoft's approach to the market has often been to acquire companies that develop a great product, and after a few revisions, the product becomes a cash-cow (i.e. MS DOS, MS SQL Server, Excel). In this case, Google has a product that Microsoft wants to develop from scratch and try to make it compete with the existing market. This worked in the Netscape vs. Internet Explorer war, so I'm not going to say it's not a penetrable market.
The problem is, Google's sole venture is really only the web search market. It is their turf, and I think Microsoft should respect that. That's not to say that Microsoft should give up on developing these new web technologies. Microsoft can make any existing product better than it ever was. The best comparison of Microsoft innovation on a concept is with the new mapping:
- Google Maps - the first AJAX-based mapping software that features drag & drop map panning as well as aerial views. This tool made it really easy to map travel directions as well as spot all the local McDonald's.
- Microsoft Windows Live Local - a similar mapping tool that vastly expands the capabilities of online maps. Some of the best features are:
- Scroll to zoom
- Traffic reports using data from Traffic.com
- Save 'pushpins' of locations the user wants to remember
- Bird's eye view of locations that gives a helicopter view of cities instead of just a satellite view
- If searching for restaurants in an area, as you drag the map around, it will re-search the map area for restaurants and display the ones pertinent to the current view
Maybe that's the point Microsoft has been making to Google all along. They can make anyone else's software better. However, I believe Microsoft will do better to continue to create new avenues of online systems that are completely unassociated with Google's. The best example is currently the online Office Live tools that are currently available in beta. This is an innovative market that Google will not be able to compete on.
All in all, I look forward to the continued battles that will, no doubt, occur. These make stock prices rise and fall, and innovation flourish.