Fortune has a story on the classic challenge of today: Microsoft (Gates) vs Google.
Google has become a new kind of foe, and that’s what has Gates so riled. It has combined software innovation with a brand-new Internet business modeland it wounds Gates’ pride that he didn’t get there first. Since Google doesn’t sell its search products (it makes its money from the ads that accompany its search results), Microsoft can’t muscle it out of the marketplace the way it did rivals like Netscape. But what really bothers Gates is that Google is gaining the ability to attack the very core of Microsoft’s franchisecontrol over what users do first when they turn on their computers.
Inside Microsoft, the battle with Google has become far more than a fight over search: It’s a certifiable grudge match for king of the hill in high tech. “Google is interesting not just because of web search, but because they’re going to try to take that and use it to get into other parts of software,” says Gates as he leans forward in his chair, his body coiled as if he could spring to his feet at any second. “If all there was was search, you really shouldn’t care so much about it. It’s because they are a software company,” he says. “In that sense,” he adds later, “they are more like us than anyone else we have ever competed with.”