December 15th, 2008

Chrome currently beating IE8 Beta in market share

Posted by Garett Rogers @ 8:54 pm

Categories: Google, Microsoft

Tags: Google Inc., Microsoft Internet Explorer, Beta, Web Browser, Web Browsers, Internet, Garett Rogers

I ran across an interesting chart from TG Daily which shows a side-by-side comparison of market share for both Chrome and IE 8 from Net Applications data. It’s very interesting to see that Google has been ahead Microsoft’s new browser since they were both launched. To be fair, the only way to get IE 8 is by downloading it manually, so market share is sure to drastically change once Windows 7 is ready for most consumers in 2010.

If we’re talking about how the two are trending while on equal ground, it appears Chrome is accelerating while IE is losing steam. Considering the two are in direct competition to be the “next browser”, it’s looking promising for Google. They have already made themselves the default browser in the Google Pack, and before long, Chrome will be pre-installed on computers. The anti-trust ruling against Microsoft over Internet Explorer will make it basically impossible to prevent Google from striking deals with OEM’s.

Given this information, what do you think about Google’s chances in the coming years with Chrome?

November 26th, 2008

Microsoft still fighting a losing battle against Google

Posted by Garett Rogers @ 8:41 pm

Categories: Google, Microsoft

Tags: Google Inc., Microsoft Corp., Financial Accounting, Advertising & Promotion, Operating Systems, Finance, Marketing, Software, Garett Rogers

New Comscore data was released today which clearly shows how Google’s search share is continuing to rise, and despite Microsoft’s best efforts (even giving away prizes to searchers), they are at best stagnant. Year-over-year, Microsoft’s search share went from 9.7% down to 8.5% while Google rose from 58.5% to 63.1% according to the research.

A question that Microsoft executives and shareholders should be asking themselves is how viable their $1.2billion/year search budget actually is. In fact, I think Microsoft could do more damage to Google by leaving the search space than if they stuck around.

Spending extra cash on areas like mobile, their operating system and retaining enterprise clients could help keep Google from growing in those areas. Who knows, if they leave the space, that extra 8.5% search share (assuming they go back to Google) could help raise concern from legislators about potential anti-competitive issues — something Microsoft would love to see happen.

If you were Steve Ballmer, would you gracefully leave the search space, or would you hope that your search share goes up over time? If you would “stay the course”, what kind of things would you do to be more competitive?

November 8th, 2008

Microsoft is falling behind in mobile

Posted by Garett Rogers @ 1:42 pm

Categories: Google, Google Phone, Microsoft

Tags: Apple iPhone, Google Inc., Microsoft Windows Mobile, Mobile, Operating System, Microsoft Corp., iPhone App Store, Microsoft Windows, Operating Systems, Advertising & Promotion

Steve Ballmer is quick to say that Google’s new Android operating system is nothing to worry about, and that he doesn’t get their business model — but when was the last time you heard anything interesting about Windows Mobile?

“This is [Google's] first phone, they’re not easy. Let’s see how they do.” … “[Google] can hire smart guys, hire smart people, blah-de-blah-de-blah. … I don’t really understand their strategy, maybe somebody else does. … Turning up to an investor meeting saying, ‘We’ve just launched a mobile operating system with no revenue model, yay!’ — I wouldn’t do that. … I don’t get the business model.”

Google has been working hard on Android, and in many ways, they are the open source alternative to iPhone. Even Blackberry is stepping up to the plate with their new touch screen device. All three of these operating systems are taking trending towards self-serve, hosted application directories that really get developers excited about building applications. The iPhone App Store has been a huge success — some applications like Trism have brought instant riches to its developer (a quarter million in just 2 months). Google’s market place, and the App Center from Research In Motion are sure to be just as attractive to developers.

What about Microsoft? Windows Mobile 6, which technically has lots of the same potential, looks ancient and feels clunky compared to its modern counterparts. The lack of the “cool factor” for Windows Mobile could quickly become a problem for Microsoft.

There are two types of operating systems for smart devices — proprietary ones like iPhone and Blackberry, and ones designed for the mass market like Windows Mobile and Android.

Proprietary operating systems will continue to exist, as long as devices that support them are cooler than other devices — Apple and Research In Motion should be around for a long time due to their brand. On the other hand, operating systems designed for the mass market are going to be successful only if they can be sexy to manufacturers and carriers — and that’s why Microsoft might start seeing problems if they aren’t careful.

Android is free to license — that means device makers can cut costs on every device they make. That’s going to be increasingly important in these economically challenging times.

Do you think Microsoft is falling behind in mobile? Let’s hear what you think in the TalkBack!

October 18th, 2008

Google Apps no threat to Microsoft? Maybe it is...

Posted by Garett Rogers @ 11:09 am

Categories: Google, Google Apps, Google Docs, Microsoft

Tags: Google Inc., Google Apps, Microsoft Corp., Cloud Computing, Garett Rogers

Steve Ballmer is convinced that Google Apps is nothing to worry about — according to Steve(24 minutes in), “you can’t even put a footnote in a document”. Perhaps what happened directly after he said that is precisely why Microsoft should be worried.

About 2 days after Steve downplayed any kind of competition that may be coming from Docs, Google added footnote support. The agility, and horsepower that Google has behind it is something that companies — even Microsoft — should be wary of, and definitely shouldn’t take lightly.

It’s true that Google Docs hasn’t yet challenged Microsoft as much as I’m sure they would like, but don’t count Google out just yet. This is how I see it playing out over the next few years:

1) Google perfects their entire Google Apps suite (which includes Google Docs, Gmail, Google Calendar, etc.) by getting it to a point where it could theoretically compete with Microsoft
2) They make everything available “offline”
3) The Enterprise Search Appliance will be no longer just for search — it’s will be an enterprise class server that you can deploy internally to host Google Apps

Once Google reaches step 3, there nothing stopping them. Companies will have the power of Google Apps which is by then able to compete with Microsoft products, and deployable within their company infrastructure. Users won’t have to worry about downtime (unless it’s actually their own problem), and all that data is completely out of Google’s hands and available without an internet connection.

Perhaps this is why all Google’s stuff is still in beta? Do you think Microsoft has anything to worry about with Google Apps?

September 20th, 2008

Microsoft, this is how you can deal with Google

Posted by Garett Rogers @ 11:13 pm

Categories: Ideas, Microsoft

Tags: Google Inc., Microsoft Corp., Search, Corporate Law, Business Operations, Garett Rogers

Google has again gained a whole percentage point this month, at the expense of Microsoft (losing 0.9%). It seems that Microsoft is consistently losing ground — the ship is sinking, and it doesn’t appear they can do anything about it. So much for that $1 billion per year they are putting towards gaining market share over Google. What can they do to get on the right track?

Let me explain something to you, Microsoft. What you are doing isn’t working — it’s as simple as that. It’s easy for someone to say that you aren’t doing a good job, so that’s why I’m going to give you a solution. Take it for what it’s worth, but this suggestion will instantly start making your search division profitable — somewhere in the neighborhood of $300 to $500 million per year (without spending a dime). Not only will you start making money, but you will also hopefully start seeing your market share begin rising rather than declining.

What is the plan? It’s going to be a tough pill for you to swallow, but it has to do with letting Google serve up search results and ads on your Microsoft Live search engine. Of course, I don’t know if Google will want to help you out, but it’s worth a shot if you serious about the future.

But wasn’t doing this what caused Yahoo to fall out of the lead? Using Google’s search technology was a mistake back then, because Yahoo already had the lead. You have nothing to lose, and everything to gain — Microsoft is so far away from first place that using Google, in my opinion, will do nothing but help.

After signing a multi-year exclusive deal with Google, you can spend those hundreds of millions of dollars per year that Google is giving you on extremely talented engineers and creative marketing geniuses. These folks can take their time to rebuild your search engine behind closed doors (one that can hopefully be competitive). Why not leech off Google for once?

The likelihood of Microsoft going down this road is basically zero, and it may actually be looked at by Yahoo and Ask as a textbook case of antitrust, but it sure would be interesting, wouldn’t it?

August 30th, 2008

Microsoft spends $486 million to compete with Google

Posted by Garett Rogers @ 9:43 pm

Categories: Microsoft

Tags: Google Inc., Microsoft Corp., Games, Investment, Personal Technology, Finance, Garett Rogers

Today we’re seeing headlines about Microsoft’s latest huge investment that is going to “accelerate pursuit of Google“. They purchased a company called Ciao that is said to be used by 26.5 million people a month to compare and review products. It might be a case of regional usage, but I’ve never heard of it before, have you?

Anyway, if Microsoft thinks this purchase is going to help them gain any kind of meaningful ground on Google, I believe they are mistaken. If I was in control of the “Google pursuit” at Microsoft, I guarantee I could find better use of half a billion dollars.

That’s an interesting question — what would you do with the $1.2 billion per year that Ballmer has set aside to get Microsoft into the game?

August 21st, 2008

Google gains share again, should Microsoft give up?

Posted by Garett Rogers @ 6:12 pm

Categories: Google, Microsoft

Tags: Google Inc., Microsoft Corp., Operating Systems, Software, Garett Rogers

Google has been gaining market share consistently since they day they opened up shop, and it doesn’t appear it will be slowing down any time soon — in July they were up to 62%. Yahoo and Microsoft have been trying their hardest, spending hundreds of millions of dollars each year to try and change users’ minds. Unfortunately for them, their money has so far been wasted considering they are consistently losing ground to Google — a company that really doesn’t even have to try.

So, 5 years down the road, what happens once Google’s market share moves from 60 some to 90 some? Does any other current search engine have a chance? I can see the battle ground moving off US soil to another country where there may be an opportunity for success. I sometimes feel that Microsoft and Yahoo should probably cut their losses with search, and start thinking outside the box. Leave “Google Killers” to start-ups who at least have a new brand going for them.

I often ask myself why Microsoft is so intent on trying to compete with Google anyways. Shouldn’t they be focusing their efforts on things they have proven they can do well, like creating excellent operating systems that get the job done in homes and in the enterprise? If it’s the big advertising bucks spurring their efforts to try and take on Google, they are trying too hard. Why not figure out how to work relevant advertising (that users will welcome) into the operating system in a way that isn’t intrusive, or a privacy problem, then give the operating system away for free.

I make it sound too easy, but anything can be figured out. Where there is a problem, there is usually a solution, and I think Microsoft would be spending their money more wisely figuring that out than trying to topple Google. What do you think about the future of Google’s market share, and what it means for the companies trying to compete?

June 12th, 2008

Microsoft and Yahoo stop talking, and Google wins

Posted by Garett Rogers @ 4:39 pm

Categories: Microsoft, Microsoft-Yahoo, Yahoo

Tags: Google Inc., Advertisement, Yahoo! Inc., Microsoft Corp., Garett Rogers

Today Microsoft and Yahoo officially stopped talking — the day, I’m sure, Yahoo investors were dreading. The hope that Microsoft and Yahoo might still work out a deal fizzled, and as result, Yahoo shares plummeted 10% before trading ended today.

today announced that discussions with Microsoft regarding a potential transaction — whether for an acquisition of all of Yahoo! or a partial acquisition — have concluded. The conclusion of discussions follows numerous meetings and conversations with Microsoft regarding a number of transaction alternatives, including a meeting between Yahoo! and Microsoft on June 8th in which Chairman Roy Bostock and other independent Board members from Yahoo! participated. At that meeting, Microsoft representatives stated unequivocally that Microsoft is not interested in pursuing an acquisition of all of Yahoo!, even at the price range it had previously suggested.

It worked out well for Google though — no Microsoft/Yahoo merger on the horizon, and a fresh partnership that lets them put ads directly onto Yahoo properties. Jackpot! They are careful to point out why this deal is good, and not evil on their blog:

• This is not a merger. Rather, we are merely providing access to our advertising technology to Yahoo! through our AdSense program.
• This does not remove a competitor from the playing field. Yahoo! will remain in the business of search and content advertising, which gives the company a continued incentive to keep improving and innovating. Even during this agreement, Yahoo! can use our technology as much or as little as it chooses.
• This does not prevent Yahoo! from making similar arrangements with others. This arrangement is not exclusive, meaning that Yahoo! could enter into similar arrangements with other companies.
• This does not increase Google’s share of search traffic. Yahoo! will continue to run its own search engine and advertising programs, and the agreement will not increase Google’s share of search traffic.
• This does not let Google raise prices for advertisers. Google does not set the prices manually for ads; rather, advertisers themselves determine prices through an ongoing competitive auction. We have found over years of research that an auction is by far the most efficient way to price search advertising and have no intention of changing that.

Here are some excerpts from the announcements made by Google and Yahoo:

“[Google] has reached an agreement that gives Yahoo! the ability to use Google’s search and contextual advertising technology through its AdSense(TM) for Search and AdSense for Content advertising programs. Under the agreement, Yahoo! has the option to display Google ads alongside its own natural search results in the U.S. and Canada. In addition, Yahoo! can serve contextually targeted ads on its U.S. and Canadian web properties as well as on its current publisher partner sites.” — Google

“Yahoo! believes that this agreement will enable the Company to better monetize Yahoo!’s search inventory in the United States and Canada. At current monetization rates, this is an approximately $800 million annual revenue opportunity. In the first 12 months following implementation, Yahoo! expects the agreement to generate an estimated $250 million to $450 million in incremental operating cash flow.” — Yahoo

May 4th, 2008

Microsoft withdrawals bid for Yahoo, Google wins

Posted by Garett Rogers @ 8:13 am

Categories: Google, Microsoft, Yahoo

Tags: Google Inc., Yahoo! Inc., Microsoft Corp., Mergers & Acquisitions, Corporate Law, Investment, Finance, Business Operations, Garett Rogers

In a press release from Microsoft yesterday, Steve Ballmer said that it officially withdrawals it’s bid for the acquisition of Yahoo, and cites the deal with Google as the main contributing factor for his decision.

“In our view, such an arrangement with [Google] would make an acquisition of Yahoo! undesirable to us for a number of reasons” - Microsoft Press Release

Now that the dust is settling, we can see what kind of impact this withdrawal will have. As Larry Dignan says on BTL, Google is the big winner. Not only do they not have to worry about a combined Microhoo working together to destroy them, they could also get a lucrative ad deal with Yahoo!.

Before Ballmer withdrew his offer to purchase the company, Yahoo! did everything it could to try and derail the efforts of Microsoft. That included reaching out to Google, and asking them to try using AdWords on their own search engine. Mind you, this is still only a “test”, and it could be subject to close scrutiny by regulators, but it is still looking pretty good for Google.

March 9th, 2008

The Google Apps Appliance would make Microsoft sweat

Posted by Garett Rogers @ 8:28 am

Categories: Google, Microsoft

Tags: Google Inc., Google Apps, Microsoft Corp., Financial Accounting, Finance, Garett Rogers

Out of all other Google services, Google Apps is the product with the most potential to put a dent in Microsoft’s earnings if it ever took off. As we’ve seen in the recent past, both companies will do almost anything to one-up the other — and that should worry Microsoft.

Given Google’s dominance over Microsoft in the search space, it’s strange to think of them as “the little guy” in the enterprise. Since Microsoft is so far in the lead, they don’t Google seriously — that could be a problem.

According to Bill Gates, the enterprise is a beast only they know how to tame:

“[Google Sites doesn't] understand the special needs of business” … “If you’d seen what the Google tools that have tried to do productivity type things, they really don’t have the richness, the responsiveness,” he said, later adding, “for most of these Google products, to be frank, the day they announce them is their best day.”

Google has been throwing pebbles (Google Sites, Google Apps Team Edition, and Postini), but there could be one boulder in their arsenal they are just waiting to hurl — the Google Apps Appliance. Google already has an “appliance” for the enterprise, but the only thing it does right now is search. The Google Apps Appliance could be an upgrade to that, or something completely new that is designed to plug right into your existing IT infrastructure. This could be the enterprise home run they have been looking for.

The main reason Microsoft products are consistently chosen over switching to Google Apps is because most companies, of all sizes, don’t trust anyone with their data but themselves — and rightly so. Google has two options:

1. try and convince people that their most private information is safe behind their doors, or
2. start swimming downstream by offering a hardware solution that users control

It will be easier for Google to shift it’s enterprise strategy than shifting the minds of potential customers when it comes to privacy.

Launching the Google Apps Appliance will put Google on a level playing field with Microsoft — and the lower price-point of Google services will look more attractive than ever before. Microsoft will either be forced to reduce their price to compete, or lose some customers. Both will negatively impact their earnings.