Microsoft, Google Battle on

May 15, 2007

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Gartner: Microsoft after Google’s advertising jugular
[Linda Tucci, Senior News Writer]

The battle between Microsoft and Google Inc. took a lively turn last
week, when reports surfaced and then were quickly batted down that
Microsoft was once again in merger talks with search firm Yahoo Inc.

Whether the discussions are happening or not, any doubts that
Microsoft — not Google — is the company on the offensive can be
dismissed, said David Mitchell Smith, an analyst at Gartner Inc. in
Stamford, Conn.

“Microsoft is clearly going after Google’s core business,
advertising,” Smith said. “Google is trying to distract Microsoft, so
a company with its resources can’t apply 100% of its focus on the

The chatter in recent months has been that Google is going after
Microsoft where it hurts — in the realm of work. Last year’s
acquisition of Writely by Google shows that office applications —
albeit Web-based, free and available at the click of a mouse — are
of interest to the Mountain View, Calif.-based search engine firm.

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