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  1. 2009.08.04 MSFT vs GOOG

MSFT vs GOOG

Thoughts 2009. 8. 4. 18:23
I am an economist.
I hate monopolies or oligopolies - both create serious deadweight losses in the economy (Econ101).

But I am also all about innovation, especially in the field of the Internet where I am living my everyday life.

I think antitrust lawyers should go a little easy on the battle of Microsoft ("MSFT") and Google ("GOOG").
They seem to be in mutual hatred and disagreements at least as long as both sides' CEOs and board members stay put.

MSFT has been ever-trying to get Google's Internet ad shares, and Google has slowly been getting into MSFT's territory as well (with Firefox, Chrome, Google Doc, and more).

I think Yahoo's becoming more and more insignificant.
I do check Yahoo Sports several times a day and am an ardent user of Yahoo Fantasy Sport games,
but that's all.

I never use Yahoo on anything else.
Okay, I use Yahoo Messenger, not because I want to, but because I'd rather use what my friends popularly use than trying to convince them to use Google Talk one by one. I am not a good marketer and many can be very innocent and arrogant with what they have.

I also still use Yahoo mail as it is my first email address created in 1997, but it's now mainly to register websites instead of actual email uses.

So, I think Yahoo will eventually become No. 3 in the Internet, and it finally began taking its steps to slide down with the recent search deal with MSFT.

I am not sure Bing is any better than Yahoo Search - both of them are more of directory-oriented than Google, based on my experience.
But Yahoo is in deep financial or management abyss, it's going to be hella difficult for them to grow beyond current position especially when MSFT is definitely determined to expand in the Internet market shares.
MSFT has its unlimited pool of resource (or money) from Windows.
Yahoo got nothing but failed, lame and overpriced acquisitions.

I am an ardent Windows XP user (never used Vista except on my friends' PCs) despite of my growing love to Mac as I have been using Mac at work for almost 2 years. I do have a serious chance of getting a Mac once Korean websites let go of ActiveX usages. But MSFT is MSFT...

They are playing a catch-up right now on GOOG in the Internet market.
GOOG, which intends to innovate products before whether they can monetize or not, is ahead of MSFT in the Internet, but is playing a catch-up in the OS market.
I think as long as these two giants continue to complete against each other, only we, consumers would benefit from all the innovations. I can't wait the day when MSFT decides to develop products before thinking monetization like GOOG does. That should be the only way to catch up with GOOG.

Of course, there is also a chance for them to collude, but I believe that Uncle Sam would step in in case that happens. It's true that many innovations still come from start-ups, but many of those won't attract significant users unless they are supported by industry giants. That is, for it to be famous, it would eventually have to be merged with the giants and these giants.

MSFT might also have to take care of competition in enterprise softwares against Oracle, and they recently showed interest in security market with acquisitions of network security companies, but their clear focus is on OS and the Internet - the two subjects that matters to me directly.

I hope MSFT can merge with YHOO, and start the bloody battle against GOOG.
I am not sure Ballmer is the man enough to do the job (compared to Gates of 90s), but MSFT must have enough talent to make it happen. Schmit is not exactly an ever-successful CEO, too, anyway - which is largely thanks to MSFT.

I talk and talk, but all I can do is wait.
Posted by 【洪】ILHONG
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