Google’s Strategy to Kill Microsoft
Posted: Fri May 02, 2008 4:18 pm
Google’s Strategy to Kill Microsoft
http://www.itbusinessedge.com/blogs/rob/?p=220
http://www.itbusinessedge.com/blogs/rob/?p=220&page=2
The Fluid Kill-Microsoft Plan
"The goal appears to be to first strip the value from Microsoft’s key desktop properties and then deliver the decisive blow with a platform shift to the Android offering. Since the goal is not to steal Microsoft’s revenue, at least initially, but to keep Microsoft from getting it, the task is vastly simpler.
The plan has been in motion for some time as Google slipped gadgets, search bars and Google home pages onto new PCs and into new applications people purchased over the last year, but it finally became visible when it started negotiating with Yahoo to control Yahoo’s search advertising revenue (the asset that Microsoft really wanted). This both lowers the value of Yahoo to Microsoft, if successful, and gives Google that value until the merger concludes.
Google then moves aggressively against the culmination of the merger in multiple geographies to ensure the merger cannot close while it continues with the benefits Microsoft is barred from. The obvious reason is to preserve the revenue and partnership; the actual reason is to deny this revenue to Microsoft and tie the company up as it focuses on Yahoo.
Much like with the wireless spectrum auction, Google gets substantial financial benefits while incurring little or no cost. This is called “gaming the system;” Google appears to be a master of it."
http://www.itbusinessedge.com/blogs/rob/?p=220
http://www.itbusinessedge.com/blogs/rob/?p=220&page=2
The Fluid Kill-Microsoft Plan
"The goal appears to be to first strip the value from Microsoft’s key desktop properties and then deliver the decisive blow with a platform shift to the Android offering. Since the goal is not to steal Microsoft’s revenue, at least initially, but to keep Microsoft from getting it, the task is vastly simpler.
The plan has been in motion for some time as Google slipped gadgets, search bars and Google home pages onto new PCs and into new applications people purchased over the last year, but it finally became visible when it started negotiating with Yahoo to control Yahoo’s search advertising revenue (the asset that Microsoft really wanted). This both lowers the value of Yahoo to Microsoft, if successful, and gives Google that value until the merger concludes.
Google then moves aggressively against the culmination of the merger in multiple geographies to ensure the merger cannot close while it continues with the benefits Microsoft is barred from. The obvious reason is to preserve the revenue and partnership; the actual reason is to deny this revenue to Microsoft and tie the company up as it focuses on Yahoo.
Much like with the wireless spectrum auction, Google gets substantial financial benefits while incurring little or no cost. This is called “gaming the system;” Google appears to be a master of it."