A Shot Across The Bow

Google has changed their policy on computers used internally within the company, away from Microsoft products. Employees will now use PCs with Linux or Apples with OS X.

This has got to be bad news for Bill Gates and Steve Ballmer. They claim their products are as innovative and attractive to consumers as ever. The free market will tell the story eventually.

Just last week, Apple stock outstanding exceeded the value of Microsoft's but Apple is a different kind of company.  Apple makes it's money on hardware. They sell a wide range of hardware all across the market spectrum, with their own branded content. Their hardware and content may be superior, as they like to claim but that's debatable and it is more expensive than competitors. Their proprietary software applications are the big draw,  perceived to be superior, more secure and they almost give it away.

Google is yet a third type of company. They provide access and make their money on advertising. The common wisdom is that they will take the consumer into the age of cloud computing. How they will do that, what it will mean to the consumer and how Google will turn that into profit is any body's guess.

I tell you what, though. If Google keeps its focus on providing a media experience with an advertising profit base and the expense to the consumer is minimized, they will dominate. People are always willing to  sacrifice quality and put up with advertising, even if it is intrusive and obnoxious, if the cost to them is minimal.