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« Microsoft to Kill Google? No. | Main | Google to Kill Microsoft? Please Explain. »

October 04, 2005

Google and Sun Welcome You To a Non-Event

Despite the instantaneous press description of today's Google-Sun announcement as a declaration of Valley-Redmond war--"Google Sun Challenge Microsoft Office"--it was nothing of the sort.  Fortunately for Google, the announcement was a non-event.  The parties have simply:

agreed to explore opportunities to promote and enhance Sun technologies, like the Java Runtime Environment and the OpenOffice.org productivity suite.

This is great news for Google fans, who fear that Google might one day succumb to the same Captain-Ahab obsession that buried Netscape--a desperate need to fight Microsoft on Microsoft's home turf.  Free or nearly free office suites have been available for years, and, on its face, today's partnership will merely make one of them more available.  As Goldman's Rick Sherlund pointed out this morning, free office suites are likely to appeal to only a tiny segment of the office productivity market--mainly consumers working at home who don't mind using a stripped down product--and no distribution deal is likely to change this.

Had Google actually committed to attacking Microsoft's Office franchise, reasonable observers would have been forced to conclude that Google did, in fact, have Netscape-Ahab disease and was willing to risk a wonderful future in blind hopes of taking down Redmond.  As it is, observers merely have to worry that Google is expanding horizontally faster than Emeril and wonder whether any company--even Google--can do this without loosening its grip on its core franchise (in this case, search).

Posted by Henry Blodget on October 04, 2005 at 02:10 PM |

Comments

Hey Henry, welcome back to the web waters. The temperature is pretty warm and only getting warmer. Quick thoughts on your take on GOOG and Sun. The fact that they called a big press conf. to bascially announce a toolbar distribution deal only underscores Goog's desire to take on MSFT. The announcement wasn't toolbars, it's watch your six because we can overcome your hold on box makers with direct delivery. MSFT should read this announcement as a wake up call to accelerate the velocity of their own developent efforts. Either way, consumers win and the Tech is back!

Posted by: Pat | October 04, 2005 at 05:08 PM

I agree with Pat. While the announcement had all the excitment of watching grass grow, it was the fact that the two CEO's got together to make it that is significant. Why didn't each company simply do a press release? They new the buzz this was going to generate and now they want to see what happens next.

Posted by: Joe | October 04, 2005 at 07:01 PM

Redmond should simply make Office 12 free and try to figure out a cool way of making money selling ads by running AdSense-like advertising from within their Office applications. The trends seems to be web-based apps. Ajax-based email clients already give Outlook a run for its money. Why doesn't Microsoft simply give Outlook for free and have a pane with Outlook that serves up Microsoft Ad Network's ads. I am sure that is what Google is upto to with the OpenOffice deal.

Posted by: Atul | October 04, 2005 at 08:01 PM

What’s the big deal? Google and Sun work together. Officially. Microsoft is the target. Period.

Posted by: Dimitar Vesselinov | October 04, 2005 at 09:44 PM

Here's what I wrote down at GigaOm.com:


Maybe they will merge.

Create a company called SUoggle. Then will be bought by Oracle that can add a AJAX-injected Office Suite into their offerings..

So we would have a company Called OrOOGle which could then sell a database driven Ajax-infused office suite as a streroid infused front end to all their CRM/SRM applications (Siebel + PeopleSoft).

They can also then give everything away for free over the GoogleNet and then makes billions in profits from the “Thank You” notes from the people of SFO that they can sell on eBay..oops..shouldn’t ebay be in the mix too??

I can’t even smirk at this bubble…..

Posted by: java2king | October 05, 2005 at 01:43 PM

If you had any clue about economics, you would realize that this announcement is nothing more than applied game theory.
Someone at Google/Sun might have read the book written by this year`s Nobel Economics Prize winners "The Strategy of Conflict" (1960).
Nice work about the role of threats and promises in conflict situations, which shows that an actual threat is less effective than a possible threat.

Posted by: read a book | October 11, 2005 at 01:38 PM

meaning: this is by no means a "non-event"

Posted by: read a book | October 11, 2005 at 01:41 PM

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