beyond 140 for @lewmoorman

"Google is not offering something substantially better. They are offering something cheaper."

I have to disagree with that statement. The collaboration functionality of Google Apps is really excellent and very useful. For me at least, the collaboration abilities outweigh most differences in features. Nothing yet from Microsoft comes close. I recently, in real time co-edited a document with 4-6 other people simultaneously with rich formatting (CSS driven) in Google Docs. We built a comprehensive and complex software specification document on a single phone call that was the on-going basis for a longer project. It was extremely productive.

Having said that, I am interested to see what Microsoft has coming up though! The market/we need to Google vs. Microsoft. It spurs innovation dramatically. Microsoft was not threatened for far too long in the core business.

Kent Langley

As a collaboration tool, I absolutely cannot argue with you. But, two issues, with this. One, that is what google docs is: a collaboration tool. It is not a full fledged replacement for office. And two, MS will have the same features. Just wait.

Fully agree, great picture! Did you create it yourself?

"Google is not offering something substantially better. They are offering something cheaper."

Since Kent points out the collaboration features of Google Apps. Here is another substantial improvement: "Ask any GMail user why don't they use folders to classify their mail, their answer will simply be why bother I can get to anything in 2 sec by searching my mail box". Just try doing that in outlook !

I think what Google is offering is profoundly different to what Microsoft has been offering. Google is laser focused on delivering simple tools that as a collection work to solve 80%-90% of a users problems. The largest cost to productivity is collaboration, Google is aiming to solve this in a simple, platform neutral manner that will work well with connected devices.

I think as you say the consumer is the winner here. The shareholder will also win, the rapid expansion of digital life will only increase the need for better tools and services, so the market as a whole will be bigger. In 10 years from now, we probably will not recognize the digital landscape.

Another point of view:

http://mashable.com/2009/07/11/google-equation/

Chrome OS: Keeping you on the web

Google Revenue = Amount of Time on the Web

I think that is also very relevant to what Google is doing.

Roger, folders are not a problem. Email search can be solved. So can basic document collaboration. MS will solve them too. Their is no competitive difference in what Google is offering.

Good article. I happen to share a differing view however. I do believe that since it will be an open source project, it can never really "be killed".

I posted a small write-up on my blog here: http://www.chrome-os-blog.com/will-chrome-os-simply-serve-as-a-reason-for-microsoft-to-lower-prices-133/

chromeos:
Well, you are right, nothing dies that is open source....but, that does not mean it will severely impact the market. Ubuntu is much loved but has not impacted Windows or Mac. My hunch is Chrome will fare even better than Ubuntu on the desktop, but that is a far cry from making a real dent in the MS kingdom.

The question is WHEN will MS solve these problems. Clearly from Kent's vantage point Collaboration was a problem and a competitive difference. I wonder how many more people think like him ?

I issue here is that anything that erodes the Windows/Office revenue stream will hurt very noticeably while keeping people online will only benefit Google.

Firstly, MS will continue to retain it's grip on the enterprise market. Savvy user's gripe, but sysadmins know what they're getting with MS apps. Second, Internet savvy users, from the general populace, are adopting the the Web 3.0 philosophy even without their knowing it. Google has been at the fore front in this area with their gApps. The introduction of a web oriented OS will really propel the idea of computing in the cloud even further.... but it will be another 5+ years before you see enterprise move to a Web 3.0 infrastructure.

Bottom line is, if MS can catch up with Google regarding in-the-cloud computing, they stand to make much more than Google because their adopters will be large companies first, and the individual user second. Google will continue to have a shallow presence in the enterprise market. Will their revenue, generated by the general user, via their less direct plan of stimulating ad revenue be enough to sustain them?

Amen to "say goodbye to monopoly rents"!!!

Hmmm......