Contradicting all the analysis that pits GOOG and MSFT against each other by predicting that Google is going to overtake Microsoft, I am going to demonstrate in three points why this is highly unlikely:
1 – Microsoft and Google are not competitors. Google is an ad agency, 98% of the groups strengths are concentrated on increasing advertising revenue and on the services that generate such revenue. Microsoft is a software editor.
2- Google has not shown anything yet in terms of building software like Office or in terms of operating systems. Even if that was the case, there is the striking example of Apple, who has a much more powerful OS than Windows, but which has never overtaken a 5% market share in this field, without ever risking the production of a 100% MAC Office suite.
3- Google’s sales turnover comes from advertising and Microsoft’s from software sales. Do you see any competition? Publicity and search are only a small part of Microsoft’s market offer. The Redmond company wouldn’t even blink if both these markets crumbled, whereas Google would be in great danger.
We can talk about this again when Google has a complete Office suite, but that’s not for tomorrow.
