Who will win the battle for tomorrow?

16 Jul 2009

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It will be some time before Google’s latest venture becomes in any way a priority for corporate IT

Everybody loves a good head-to-head battle -­ Ali vs Frazier, David vs Goliath, Brown vs Blair -­ all grist to the mill for headline writers.

In today’s internet-obsessed world, the biggest head to head of all seems to be Microsoft vs Google.

Further reading

Last week saw hyperbolic headlines the world over at the news that Google plans to release an operating system -­ Chrome OS.

This move was variously presented as the end of Microsoft or Google getting too big for its boots. The only conclusion that could be reached with any confidence is that the technology industry is a competitive place ­ which is no surprise to any IT decision-maker.

Given that Chrome OS doesn’t even exist yet, it’s a little early to make any predictions for its likely success. The Chrome browser was welcomed with similar over-the-top fanfare, but has so far eked out just two per cent market share.

It will be some time before Google’s latest venture becomes in any way a priority for corporate IT. This week’s announcements from Microsoft regarding Azure and Office are far more significant for IT managers.

But there is another aspect of the battle that is far more interesting.

Financially, the two are as far from competitors as you can get. Google’s income derives from search advertising ­ a small part of Redmond’s business, albeit one the software giant is keen to grow.

Microsoft’s revenue comes from operating systems and business software ­ neither of which make a big dent in Google’s profit and loss account.

So the best way to assess this rivalry is on the real game each is trying to win ­- the battle for tomorrow.

This is a war for mindsets: to convince us the future of IT will come down from the clouds, or to persuade us it will evolve from the PC.

The most likely outcome is that both are a little bit right ­- and it is up to IT leaders to choose which approach offers the best template for their strategy.

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