Tuesday, April 17, 2007

Official Google Blog: We're expecting

Official Google Blog: We're expecting

As many of you know, Google acquired Writely, an online word processor service, and combined it with Google Spreadsheet to create Google's Docs and Spreadsheet. Now, there is news that Google will add a presentation module to Google's Docs and Spreadsheet. It looks like Google is creating an online clone of Microsoft Office. Google's CEO Eric Schmidt denies that Google is trying to compete with Microsoft Office. For one thing, Google Docs and Spreadsheet does not nearly have the same features as Microsoft Office. I am not entirely convinced. Earlier this week, Google announced that it had worked out a deal to buy DoubleClick for an astounding $3.1 billion USD. Google's cash cow is its online advertisement business. With its purchase of DoubleClick, Google has firmly cemented it dominance in online advertisement. Microsoft had high hopes to increase its presence in the online advertisement industry but that hope has evaporated. Unlike Google, Microsoft's cash cow is in its software products. With the exception of its Windows operating system software, Microsoft Office brings in the greatest revenue. Should Google be able to offer a viable free alternative to Microsoft Office, Microsoft can see its revenue from its software products evaporate as well.

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