I noted before that Google is mostly ignoring the enterprise market in favor of maintaining their huge share of regular user traffic and targeting small content producers with Adsense and small advertisers with Adwords. In fact I think FAST, rather than Google, is the top contender in enterprise search. As the internet itself becomes the network, I can see Google grinning in meeting rooms as they chart out the competition with Microsoft which is still heavily chained both economically and philosophically to Microsoft Office, big enterprise applications, and big companies in general.
Incredibly, Microsoft seems to ignore (or perhaps they just can’t cope with) forces that Google correctly sees now and on the horizon. These forces include:
* Company sizes will tend to shrink as internet efficiencies allow “mom and pops” to compete globally.
* Small companies, blogs, local companies, and other small “long tail” online entities market share will continue to grow, and may even become the largest share of total online advertising activity. (though I think this could take many years).
* Many USA, and (most?) Indian and Chinese companies often use bootlegged software. No problem for Google who gives it away anyway. MS office at perhaps $479 per lost license? OUCH!
It’s a tough spot for MS because their online revenues are trivial now, so even with the major allocations to the LIVE project it’s not clear that changing course can ever replace the enterprise and office suite revenues for a company built around “old style” computing.