Sen No Sen

A real humdinger article in Fortune: GATES VS. GOOGLE: Search and Destroy.

“There’s companies that are just so cool that you just can’t even deal with it”
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In fall 2003, Microsoft briefly considered buying Google, only to realize that even if Brin, Page, and their board could have been persuaded to sell—which seemed unlikely—Microsoft would have been left to explain to the world why it was now running a search engine built entirely on Linux instead of Windows.
(…)
Microsoft always had a powerful trump card: It controlled the Windows operating system. That meant that when consumers bought a PC, Microsoft had a powerful say in what products and services they saw first. It had pricing power and distribution power over competitors. Because of that, its applications didn’t have to be superior to those of the competition—just roughly equal. Windows wasn’t better than the Macintosh; Word didn’t improve on WordPerfect, or Excel on Lotus. Even Explorer was only as good as Netscape. Microsoft’s genius was integrating them seamlessly to make them easier for customers to default to, and then using its marketing, distribution, and pricing clout. It won by attacking competitors’ business models, not their technology.

Microsoft’s array of weapons has so far proved next to useless against Google. For one thing, any attempt to bundle search with its products will probably be scrutinized by antitrust regulators. Meanwhile, you no longer need a PC to use Google—it works fine from a Treo, a BlackBerry, a cellphone, a television, an Apple, or a Linux computer—any device with some kind of keyboard and Internet access. Nor can Microsoft undercut the price of Google software as it did with Netscape: Google is already free.

The Slashdot exchange is still heating up…