Microsoft and Google Set to Wage Arms Race

MICROSOFT AND GOOGLE SET TO WAGE ARMS RACE
[SOURCE: New York Times, AUTHOR: Steve Lohr & Saul Hansell]
The rivalry between Microsoft and Google is growing more combative, and with good reason: the outcome is likely to shape the future of competition in computing and the way people use information technology. A measure of how seriously Microsoft takes the challenge came last Thursday when it announced that its spending would rise sharply next year, about $2 billion higher than previous estimates. Much of the extra money, analysts say, is going to meet the threat from companies offering advertising-supported Internet services and software, led by Google. To succeed, Microsoft has to make strong inroads into Internet services and software, where Google is a leader. Microsoft enters that battle from a stronghold: its lucrative, powerful business in personal computer software. Google has asserted that Microsoft's next Web browser typically steers users to Microsoft's search service, limiting consumer choice and potentially hurting Google, the leading Internet search engine.
http://www.nytimes.com/2006/05/02/technology/02google.html
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