Microsoft, Google, and Sun Microsystems

News today:

Google, Sun Challenge Microsoft's Office

Note in the 4th paragraph that Office is referred to Microsoft's "cash cow". This is a perfect example; Microsoft, of course, has the vast majority of market share and most people have an office package (so not a lot of market growth).

But the really interesting question is whether or not Sun & Google can displace Microsoft. [Note here that the 2 companies are hoping that their partnership will create synergy -- remember that concept? Some feel, though, that the big winner here will be Google, that "partnership" really isn't in the picture]

Microsoft has a big competitive advantage here. Its office suite is on most everyone's computer, meaning that:

1. Support and help (college & continuing ed classes, magazine articles, etc.) assume you're using Microsoft Office -- so if you go with a different product, where's the support?
2. Most companies and schools use MS Office -- if it's on the computer at school, you might as well have the same program at home.
3. Sharing files -- passing on a document to co-worker for editing, for example, is possible because everyone is on the same platform.

Here's the big if, though. We also said that competitive advantage had to be sustained, as well as created, and that sustainable competitive advantage depens on innovation. Ok. What Google and Sun are talking about is a competing way of distributing software.

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