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Is Google Becoming a Real Threat to Microsoft’s Business Model?

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Both Google and Microsoft are probably one of the largest and richest companies in the world. Both have made their money with the computer industry, but in totally different sectors. Microsoft was in the industry a lot earlier and now dominates the computer market supplying vast amounts of PC’s with operating systems and software packages. Google on the other hand have dominated the internet industry and most importantly the search sector, which has earned them billions of dollars. But Google are now dabbling in Microsoft’s dominated sector, let’s have a look at the markets that Google are now getting into and see if it will affect Microsoft.

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Browsers
As we are all well aware Microsoft has been the dominant force in the browser sector, simply because of the sheer volume of their operating system that has been distributed. Google have now jumped on the bandwagon and launched Google Chrome, which is said to be a lot faster than the Microsoft browser. Google are also rumoured to have signed a deal with Sony to get the Chrome browser installed on all of their systems.

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Operating System
No one has been able to come close to Microsoft’s operating system Windows. But Google are developing a new operating system that is going to concentrate on making things a lot easier. The operating system will be non reliant on desktop applications, as Google look to make everything web based.

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Software
Microsoft’s office package is huge and used by companies and individuals throughout the world, but once again Google are approaching this from a web based view and are looking to get people to store their files on Google’s secure servers.

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All this being said though, this is not just a one sided race. Microsoft are also looking to promote their search engine and internet presence by rebranding their search engine and purchasing sites such as Yahoo and Facebook to build a user base. It is going to be a great battle to watch as each company looks to enter the others sector. We could potentially see in the next few years Google tapping in to the games console market, as we already know that Microsoft are fast becoming the dominant force with their X Box brand.

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Or maybe both of these companies are just concentrating on outwitting each other so much, that they could leave themselves vulnerable to a startup company doing something innovative and potentially pushing the two power horses out of the market completely.

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