I give Microsoft a better chance of toppling Google's dominance in search than I give Google of toppling Microsoft's dominance in the OS arena. Both companies are going after the other's bread and butter, but Bing is an actual product that is taking market share away now, and Steve Ballmer has committed $4-5 billion over the next few years to improving Bing and going after Google. Chrome is an anouncement not yet a product.
Second, both companies have a lot of money and both companies hire the best and the brightest in the industry. But Microsoft is in the top 10 on Fotune's list of most profitable companies. They made $17 billion in profit last year. They have the resources to fend off any of Google's attacks on their OS while still funding their attack on Google's search dominance.
Google is still a one-trick pony, whereas Microsoft is more diversified. It seems to me that Google is the more vulnerable of the two.









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