Google vs. Apple vs. Microsoft

A decade ago, there was Microsoft and then everyone else. Today, many think alpha dog status is a contest between Apple and Google. In reality, all three will be chasing each other's tails in pursuit of the other's market share amidsth the consumer's tech real estate in homes and businesses.

Microsoft has made it abundantly clear they are seeking to capture some of Google’s dominance in the search engine space. Deals with Yahoo! and the introduction of Bing were the first steps in trying to narrow the huge gap with Mountain View (Google’s headquarters).

In addition to the xBox gaming console, Microsoft is also expanding its hardware presence with a forthcoming tablet-sized computer. Although Microsoft did not debut its hotly anticipated tablet at the 2010 Consumer Electronics Show, it will only be a matter of time before they do since Apple unveiled their iPad in January.

Tablet-sized computers will just add to the list of markets that both Microsoft and Apple are now active competitors in. Amongst others, Apple’s iTunes and Microsoft’s Zune compete directly in the music space.

Apple is widely considered the premier designer of sleek, sexy electronics hardware, while Google remains the god of Internet advertising and applications. But Google’s Android operating system was a clear shot across Apple’s bow, and Apple’s $275 million purchase of Quattro Wireless is a transparent sign they intend to compete for advertising with Google.

Still, Google and Apple aren’t the natural competitors in the way Microsoft and Google are. Google’s primary operations will continue to revolve around Internet advertising while Apple’s success hinges on the appeal of its hardware.

While all three tech giants will be chasing the same dollar, euro, and yen on many platforms, it seems likely that Google will continue to find themselves the target of the rest of the field. Players like Mozilla Corp and News Corp may join Microsoft in trying to knock Google off its Internet advertising revenue and search perch.

Looking forward, the Google versus Microsoft battle will remain a war waged over a canvas of theaters, ranging from Internet search and browsers, to operating systems and enterprise solutions. Both tech conglomerates realize that growth drivers must be had at the other's expense. Microsoft must poach market share from Google's dominant Internet position. On the other hand, Google must branch out from the web into some of the many markets which Microsoft has a foot in.

There are concerns that Google, and Apple for that matter, run the risk of overextending themselves, as much as Microsoft seems to have. But when it comes to Wall Street, Google and Apple have had Microsoft’s number. While Google and Apple have been highly cyclical, and mostly hot trading stocks - Microsoft has been considered dead money for years.

Since Google’s IPO in August 2004, the stock has risen over 450%. Over the same period of time, shares of Apple have risen nearly more than 1,200%. Meanwhile, Microsoft has earned its dead money reputation at trading desks by posting a paltry 16% advance since the summer of 2004.