Microsoft Vs. Google: A Battle Of Epic Proportions - Part III

Cellular/Devices

As far as Technological devices and peripherals are concerned Microsoft (MSFT) reigns supreme with its Zune music player and Xbox360. Google (GOOG) has remained out of the Technological device market until recently after creating its Android cell phone platform. Google recently released the G1 cell phone that has been met with mixed reviews. It has not taken a significant splash into the market place and has not attempted to move the phone to the two major cell-phone networks, AT&T (T) and Verizon (VZ).  Google did attempt to move its Android platform on Verizon but ultimately Microsoft snuck in and got the partnership.

With out a doubt Microsoft wins this category/point, as Google has not really made a splash in the market. Google’s technology has always laid in the hands of the Internet, as the Internet is Google’s expertise.  This is a good strategy that has worked out well for them in the past but moving into the cell phone Market is something Google thinks may propel them further. It will be interesting to see if Microsoft attempts to enter the world of cellular phones or if Google will sometime in the future attempt to enter the video game or mp3 player market. The future remains unseen in this category but one thing is for sure, Microsoft is winning this race by a couple furlongs.

Google 3 Microsoft 2

Vs. the Regulators/Lawmakers

Everyone knows the trouble Microsoft has had with government regulators both in the US and abroad. Most notably Microsoft has been slapped with hefty fines by the EU, labeling Microsoft as a “Monopoly” who was unfairly packaging software with its operating system, leaving little room for competitors software. Most recently Microsoft was slapped again with a fine by the European Union over Internet Explorer. Let’s just say Microsoft does not have the best relationship with the government and will probably continue clashing as the software giant continues to get larger.

Historically Google has been looked upon favorably by the government and looks very favorable with the current Obama administration. Google had its first run-in with government regulators and faced possible government probing when it attempted to form a partnership with Yahoo. Google opted out of the partnership and any possible government questioning. Google is clearly looked upon in a better light than Microsoft and takes the cake in this category. However, Google is not far from a monopoly and it may not be long before they face similar scrutiny and probing like Microsoft. This altercation is truly a case of Goliath vs. Goliath.

Google 4 Microsoft 2

Playing Dirty

We have seen many instances of dirty play in this head-to-head competition and I think the fight will continue to get dirtier. Microsoft “stole” an agreement with Verizon, offering similar terms as Google but at a better price, well after Google had an agreement established. Google on the other hand watched Microsoft unsuccessfully attempt to buy Yahoo and tried to jump in and salvage the situation by partnering up with Yahoo and blocking Microsoft from this endeavor. Things are only going to get dirtier and I expect to see some fireworks with the next release of Internet Explorer.

The onslaught between Microsoft and Google has somewhat gone under the radar and does not really get much coverage in the news. There is not much public confrontation but I think going forward as the battle gets more heated along with the poor economic environment, we may truly get to see some fireworks and some public display of “ill-affection”.

Right now Microsoft has appeared to be the “dirtier” more aggressive player while Google has appeared to be the undercover strategic player in this giant game of chess. It ultimately remains unclear which direction either will take so I give both of them points on this one as they have both done their share to add to the hostility.

Google 5 Microsoft 3

Wrap-Up

It would be ludicrous to say one of these two IT giants is truly ahead in this “Internet arms-race” and the above was strictly an opinionated breakdown of the major areas where I see Microsoft and Google conflicting, some of which may be unseen on the surface. I don’t know who will ultimately win this war for the Internet or if in the future this war will even continue, but I do know that if this battle does continue, it is definitely going to be a “slobber-knocker” and I’ll be sure to update you on any further fighting between the two tech giants.

Disclosure: The mutual fund the author manages is long GOOG , T and MSFT.

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