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March 31, 2008

Taking aim at Microsoft’s cash cow

gears.jpgGoogle’s anti-Microsoft strategy continues to unfold. Today brings news that its online Docs applications will soon step beyond the Web and onto the desktop. (This is accomplished with the Google Gears browser plug-in, which lets you access internet applications while offline by using the hard drive as a cache - a company representative offered to “whitelist” me so I can start using it today, but the less privileged among you will have to wait until this feature becomes generally available over “the next few weeks.”)

Google likes to cloak its new product features in uplifting rhetoric: the company only looks to delight its users, it isn’t motivated by the sort of competitive strategy that other companies employ, and so on. But the evolution of Docs has always looked like a very deliberate plan hatched with its Redmond rival in mind.

Early on, CEO Eric Schmidt talked down the capabilities of Docs as a rival for Office: the main attraction was the ability to share documents, spreadsheets and other files over the Web, and anyway browser-based apps were very poor relations of their desktop cousins. 

Then, nearly a year ago, the tune changed. Having rounded out Docs into an Office-like suite of apps, Google said it was adding “applications” to its corporate mission statement (alongside search and advertising.) For good measure, Schmidt said that online apps were starting to become a real alternative to desktop software since browser technology had advanced far faster than he had expected (what a surprise!)

Extending Docs offline looks like the next step. Giving users the ability to write, edit or view files while not connected to the Web (any changes are automatically synchronised with the version on Google’s servers once the machine goes online again) removes one of the main disincentives for using Docs.

Google’s leaders have at times given tell-tale hints about the real strategy here. Last year Mr Schmidt conceded that while many companies might not yet consider adopting Google’s applications, they were still likely to use the threat of switching away from Office as a way to get a better deal out of Microsoft. Thanks to the new offline capabilities, this negotitating leverage is about to get stronger.

2 Responses to “Taking aim at Microsoft’s cash cow”

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  1. Richard, please join a day without Google search on April 1st

    Posted by: Yakov | March 31st, 2008 at 10:17 pm | Report this comment
  2. There is, unfortunately, one piece of evidence against this: I’m still amazed that OpenOffice has not captured a substantial slice of the market from MS Office. (Perhaps with version 3.0?) It’s free, it improves by leaps with each new version, it does all one normally does with MS Office, it’s compatibility with MS Office files is great, etc. And yet, it hasn’t taken off.

    Since OpenOffice is so much more than GoogleDocs (at this stage in GoogleDocs’ life, at least), why will GoogleDocs work where OpenOffice hasn’t? Because it’s Google?

    Is it a brand-name recognition issue? (In which case, GoogleDocs might catch on.) Or is it that the bulk of users are really that herd-minded? (In which case, MS Office will be able to reign almost-monopolic a little longer.)

    Posted by: ram | April 1st, 2008 at 11:04 pm | Report this comment

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