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17 May 2010

Latest salvo in battle between Google and Microsoft

Microsoft has fired the latest salvo against search engine giant Google in its ongoing battle for domination of the internet.

The software company has launched its flagship product Office 2010, aimed at businesses and home users that includes a free online component, Office Web Apps.

Analysts believe the web element has been included in response to Google's free online tools, which have been encroaching on Microsoft's core business.

Crucially, Microsoft will also offer its online office suite to all users of popular social networking site, Facebook.

In recent years the battle between the two companies has intensified as they increasingly stray into each other's traditional markets. Microsoft has developed its own search engine Bing, whilst Google is about to launch its own operating system, known as Chrome OS.

The conflict over the Office software market started in 2006 when the search giant launched the first elements of its Google Docs, which currently holds just 4% of the market. This is expected to grow significantly with the launch of Chrome later this year.

Meanwhile Microsoft dominates the office software market, with a market share of more than 94%. But analysts say that Google's offering will appeal more to a younger generation who have not necessarily grown up using Microsoft products.



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