Cringely on Google and Microsoft

Robert Cringely writes:

Where Microsoft’s theory of business is built around the platform and its domination, Google has built a theory of business that is independent of the platform, and therefore their software runs (or can run) on any platform. The issue around “advertising based revenue” isn’t really the key differentiator. What counts is that for Microsoft the platform is the PC while for Google the platform is the Internet and nobody can hope to control the Internet — not Microsoft OR Google.

Maybe Microsoft’s new Internet ad business will turn the tide. Wrong! How many web sites do you visit primarily for the advertising? Not anything from Microsoft to be sure, yet that’s essentially what people do with Google – going TO the ads.

And look at those Google ads. Here’s the most important key to Google’s success: Most Google advertisers don’t advertise ANYWHERE else. Its mainly small and medium sized companies whose advertisements the average person would NEVER have seen before the Internet. Google is making a ton of money from people who never advertised before. Heck, Google is making a ton of money from people who never were even in business before. This is not only a fundamental change in how advertising is done; it is a fundamental change in how BUSINESS is done.

Published by

Rajesh Jain

An Entrepreneur based in Mumbai, India.