10 Reasons Why Google Should Still Fear Microsoft

There's no debating that Microsoft fears Google. In almost everything it does, the company is responding to Google. That's especially true when it comes to the software giant's online endeavors. If it weren't for Google, Microsoft would have never considered brokering a deal with Yahoo. But it did. And it was born out of fear.

But Google should also fear Microsoft. The software giant might still be trying to gain its footing online, but it's a massive company that won't quit. And in the past, when Microsoft faced uncertain odds, it did a fine job of overcoming them. Rest assured, the software giant won't simply roll over.

Let's take a look at exactly why Google should still fear Microsoft.

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1. It's huge

Google might be a massive company with an impressive stock price, but Microsoft is still a monstrosity in the tech industry. The company generates billions of dollars in profit each quarter. It's the most powerful software developer in the entire industry. And it has the coffers to invest in just about anything it wants. In the business world, money can solve many issues. And Microsoft has the money.

2. Google is a newbie

Although Google is trying to make its way into the software space with applications such as Chrome and Android, it has yet to gain a real footing. For now, Internet Explorer still reigns supreme against Chrome in the browser market. And although it's gaining steam, Android has yet to establish itself in the mobile space. Chrome OS is also very much a question mark. All the while, it's Microsoft that Google is looking up at.

3. The Yahoo deal matters

Although Microsoft's partnership with Yahoo won't help it rule the search-engine space, it does improve its chances of getting closer to Google. Thanks to the Yahoo pact, Microsoft could soon make the search market a two-service competition. Undoubtedly, those looking to advertise will take notice. The stronger Microsoft's position is in search, the more Google should consider the possible ramifications of Microsoft getting too big.

4. Windows is still powerful

It might not garner the kind of respect it once did, but Windows is still an extremely important application. It runs on the vast majority of computers. It's the top enterprise operating system. Most users are loath to switch to something new. Realizing that, Google, which is investing considerable cash in Chrome OS, should be concerned. How will it take out Windows? How will it see a return on its investment? The more people enjoy using Windows 7, the worse it will be for Google and Chrome OS.

5. Microsoft is improving

A few years ago, I would have been hard-pressed to say that Microsoft really understands its users. It seemed that, for a while, the company was content to maintain status quo while other firms, like Google, set the new pace in the industry. I don't think that's true anymore. Today, Microsoft seems to understand what its users want. Nowhere is that more evident than in Windows 7 and Bing. Google isn't the only company that understands its users any longer.