There's a memorable scene in Crocodile Dundee where a would-be mugger pulls a switchblade on the hero Mick and his girlfriend Sue:
Sue: Mick, give him your wallet.
Mick: What for?
Sue: He's got a knife.
Mick: [chuckling] That's not a knife.
Mick: [draws a large Bowie knife]
Mick: That's a knife.
A similar scene is playing itself out between Google, Microsoft, and the Web 2.0 pundits:
Pundits: Microsoft, give Google your users.
Microsoft: What for?
Pundits: They've got an Internet-enabled office suite.
Microsoft: [chuckling] That's not an Internet-enabled office suite.
Microsoft: [pulls out Office and Office Live Workspace]
Microsoft: That's an Internet-enabled office suite.
Google Docs and Spreadsheets is incredibly useful because (1) it's free and (2) it allows you to securely share documents online instead of emailing them back and forth. The downside is that its interface is web-based and therefore inherently clunky compared to native desktop apps.1
With its just-announced but not-yet-shipping Office Live Workspace service, Microsoft aims to equal Google's free document-sharing capabilities while vastly exceeding its user experience by tying directly into Microsoft Office.
Web 2.0 pundits are pooh-poohing the announcement. The usually clearheaded Richard MacManus calls Microsoft's strategy "muddled". Lifehacker calls it "dumb". Dennis Howlett calls it "confusing". Nonsense. Google CEO Eric Schmidt once penned an article for The Economist titled Don’t bet against the Internet. He would be wise not to bet against Microsoft Office.
One Lehman Brothers analyst believes that Google Apps could generate $400 million annually by 2010. But Microsoft is coming to this fight armed to the teeth with the result of untold thousands of man-years' worth of development: Microsoft Office, which is alone predicted to reach $20 billion in annual sales.
Google can answer Microsoft's challenge in several ways. They could build components to integrate Google Apps with Microsoft Office—or with StarOffice, which is now included as part of Google Pack. Or they could bet against Microsoft Office , hope the Web 2.0 pundits are right, and do nothing.
In the movie, the mugger sizes up the situation and runs. It will be interesting to see what Google does in the same situation.
1 Don't argue with me on this; it's just true.
Tsk task Charlie: read what I said again. I said nothing of the sort. I described M$'s ability to confuse the market as 'crackers.'
Posted by: Dennis Howlett | October 01, 2007 at 11:45 PM
Dennis,
I've updated the post to read, "Dennis Howlett calls [Microsoft's strategy] 'confusing'." Is that more accurate?
-c
Posted by: Charlie Wood | October 02, 2007 at 05:21 AM