View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
June 1, 2006updated 19 Aug 2016 10:10am

Why Google attack is Microsoft’s not-so-secret secret sauce

It's official - Microsoft is playing catch-up with Google, and putting its back into the task in the form of that massive increase in R&D spending in the area.Microsoft chief executive Steve Ballmer yesterday spent an hour at the Sanford C

By

It’s official – Microsoft is playing catch-up with Google, and putting its back into the task in the form of that massive increase in R&D spending in the area.

Microsoft chief executive Steve Ballmer yesterday spent an hour at the Sanford C Bernstein & Co Strategic Decisions Conference in New York seeking to reassure Wall Street that Microsoft’s surprise $2bn increase in R&D spending, revealed a month ago, is justified. It needs to catch up with Google.

“We’ve got to make this transition, which our industry is making, from software as a product to software as a service,” he said. “If you want to be a leading software company, you’ve got to be a leading software-as-a-service company.”

This transition is “not optional”, he said. “There was one big opportunity – advertising as a software business – where we weren’t first,” he added, with a nod to Google. “Being a little bit more generous on R&D, rather than a little less, I think is a smart thing.”

My colleague Kevin Murphy goes into some depth on Ballmer’s statements here. The only surprising thing about all this Google catch-up noise from Microsoft, in my view, is why it took them so long to truly realise the threat that on-demand, or hosted, or whatever else you want to call it, is a major threat to its business.

Content from our partners
European Technology Leadership: Deutsche Bank CTO Gordon Mackechnie
Print’s role in driving the environmental agenda
What finance leaders get wrong about digital transformation

Websites in our network
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
I consent to New Statesman Media Group collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU