Why Is Microsoft Afraid of Google?

Very good analysis, but missing the most important factor, FOSS. To counter all their contenders, MS has to allocate major resource of funds and developers. Google doesn't have to, they will depend and use many of the FOSS technologies and build upon them. MS has too many fronts they have to worry about, Google doesn't. These are major advantages Google has over MS. The article sums it all out in one statement, "Microsoft is a threat to, in some ways, virtually everyone in the industry and likewise everyone is a threat to Microsoft.” . Will MS eventually get overwhelmed and overcome with the onslaught or is it going to survive it like they did against Netscape? I doubt they will survive, relatively speaking, Netscape threat was a drop in an ocean.

Microsoft is also afraid that businesses and analysts may start to notice that the profitable dot.com businesses use FOSS software, not Microsoft or Sun.

Google is a Linux shop. Amazon turned profitable after switching to Linux.

FOSS is saving companies money and it reflects in their bottom line. Microsoft has consistently posted extremely high profits. How can they do this? By charging more for their products than it costs them to produce those products. That means that companies who buy Microsoft's products are paying too much, and sacrificing their own profits.

The more companies that show how FOSS can be used to run a business, the more businesses will drop MS for a cheaper alternative.

Google shows that a succesful. profitable business can use FOSS. Other businesses will notice. Microsoft fears this.