In the few short years of its existence, Google has come a long way, simultaneously striking fear in the hearts of major players in the computer industry and also arousing their curiosity.
Its search engine is so ubiquitous that "to Google" somebody or something is now part of the lexicon of hard-core knowledge workers and casual web users alike. Google also has become a gateway to the Internet and taken steps to develop desktop applications, such as Google Toolbar and Google Desktop, not to mention other products like Gmail and Google Earth. The company's initial public offering was a big success and its stock has risen ever since. What, everyone wonders, will Google be up to next?
While Google, of Mountain View, Calif., is keeping all competitors on their toes, it poses a special threat to one particular company -- Microsoft. Why? Because Google's existing and potential products -- as well as those of other firms -- raise the specter that the behemoth of Redmond, Wash., may witness the erosion of its control over the platform for the next generation of software application development, according to Wharton faculty members who follow the technology sector.
"What Google wants to do is strategically decrease people's reliance on Microsoft. It's as simple as that," says Wharton management professor Raphael Amit.
But being a threat -- even a formidable threat -- is one thing. Actually beating Microsoft would be a different accomplishment altogether, the Wharton experts agree, and only time will tell how this David-and-Goliath-style rivalry will fully shake out.
Microsoft's concern over Google has been evident recently on several fronts. Microsoft recently announced a major reorganization designed to streamline the company's huge bureaucracy and make the firm more nimble -- a move that the Wharton scholars say was in direct response to fear of continued inroads made by competitors, especially Google, on Microsoft's turf.
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