Hugh Pickens writes: "There is a long article in the NYTimes well worth reading called "Google Gets Ready to Rumble With Microsoft" about the business strategies both companies are pursuing and about the future of applications and where they will reside — on the web or on the desktop. Google President Eric Schmidt thinks that 90 percent of computing will eventually reside in the Web-based cloud and about 2,000 companies are signing up every day for Google Apps, simpler versions of the pricey programs that make up Microsoft's lucrative Office business. Microsoft faces a business quandary as they to try to link the Web to its desktop business — "software plus Internet services," in its formulation. Microsoft will embrace the Web, while striving to maintain the revenue and profits from its desktop software businesses, the corporate gold mine, a smart strategy for now that may not be sustainable. Google faces competition from Microsoft and from other Web-based productivity software being offered by start-ups but it is "unclear at this point whether Google will be able to capitalize on the trends that it's accelerating." David B. Yoffie, a professor at the Harvard Business School, says the Google model is to try to change all the rules. If Google succeeds, "a lot of the value that Microsoft provides today is potentially obsolete.""
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