Microsoft strategies VS. Google strategies
Some would argue that the last few years Microsoft was sleeping while Google was building an Empire, while the search giant was building or buying very important services, Microsoft was standing still.
In reality the software giant have an entirely different approach, instead of buying startups with big potential or building services to compete with these startups, MS prefers to bet on the winning horse, helping them when they need and landing an exclusivity to bar out competition.
What strategies are best? it’s not a black or white answer, in some cases Microsoft strategies were better in other cases Google’s were, i’ll try to analyze some of these decisions, not to judge but only to compare the different approaches.
Google Wave: Initially released in May 27, 2009 by Google, on August 4, 2010 the project was aborted due to a lack of interest.
Google Plus: Initially released in June 28, 2011 by Google, the service so far has failed to become an active social network, even-though Google have taken giant steps to make all it’s services orbit around Google+ (ex).
Microsoft & Facebook: Instead of launching it’s own social network, MS decided to bet on Facebook, a startup launched in 2004 and that was growing very fast. On October 24, 2007 Microsoft purchased a 1.6% share of Facebook for $240 million, but also the rights to place international ads on Facebook. Microsoft helped Facebook grow but in return got a big partner, the cooperation between the 2 companies is very tight (Facebook status translation powered by bing, search powered by bing, maps powered by bing …).
Mobile / Smartphones:
Google Android: Google released Android in September 23, 2008, the Operating system was a big success and by the end of 2012 Android had a 75% share of the global smartphone market. Android OS is free and thus Google is not really making any direct revenue from the O.S. itself. Later Google started producing the Nexus handsets in partnership with main mobile handsets manufacturers (Samsung, HTC,LG)
Microsoft & Nokia: 2 years ago, Microsoft started paying $250 million each quarter to Nokia, the biggest mobile handset producer, these were platform support payment, which means that MS is paying Nokia to make Windows phones, in reality these payments were to help Nokia and thus make sure that the handset leader will be a windows only handset producer. This year Nokia is expected to pay $1 billion to Microsoft , it is the cost of software licensing – platform support, which are in MS favor for the first time since 2 years.
Microsoft & Dell: Recently Dell decided to go private, and Microsoft was there to lend it $2 billion, what would that mean for both companies and especially for M.S., it’s still too early to say, but we can expect a kind of exclusivity similar to the Nokia deal, but focused on tablets instead of mobile handsets. Microsoft is already selling the M.S. Surface tablet under it’s own brand.
That’s our analysis, if you feel we missed out something do contact us to rectify it!
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