Google vs Microsoft

NY Times Article

The growing confrontation between Google and Microsoft promises to be an epic business battle. It is likely to shape the prosperity and progress of both companies, and also inform how consumers and corporations work, shop, communicate and go about their digital lives. Google sees all of this happening on remote servers in faraway data centers, accessible over the Web by an array of wired and wireless devices — a setup known as cloud computing. Microsoft sees a Web future as well, but one whose center of gravity remains firmly tethered to its desktop PC software. Therein lies the conflict.

“It makes no sense to run your own computers if you are a small business starting up,” Schimdt says. “You’d be crazy to buy packaged software.”

"Boy, there’s no question that we are. No customer on the planet thinks about Microsoft without thinking about Office. It’s part of the DNA of Microsoft.
Needless to say, we are going to do everything we can to remain the leader in this space,” Chris Capossela, a vice president in Microsoft’s Office group. “And whoever comes our way, we’ll certainly be waiting for them.”