Microsoft takes Google Head On.
Microsoft on Thursday urged a US Senate Panel to oppose Google’s Purchase of Online Ad Targeting giant DoubleClick, arguing that 3.1 Billion Dollar Deal threatens competition and privacy.
Sources for Microsoft said “If Google and DoubleClick are allowed to merge, Google will become overwhelmingly powerful medium for all forms of online advertising.”
Google in turn defended the deal stating that Worlds leading search engine and DoubleClick were complementary companies and not competitors. Google’s Chief legal Officer David Drummond explained it by saying that the simplest way to look at this is by the way of an Analogy : “DoubleClick is to Google what FedEX is for Amazon”
He also pointed out that rivals like Yahoo, AOL and Microsoft themselves recently acquired Ad-Specialty Firms. Microsoft has agreed to pay six billion dollars for ad-targeting firm aQuantive and Yahoo paid 680 million dollars to acquire Right Media. Also AOL recently bought ad serving companies ADTECH and TACODA,which specialize in behavioral targeting of Online Ads.
A few external sources like Internet right advocates are trying to stop the Google - DoubleClick Deal from going through by bringing it front of a US Senate committee. US senators do not have the authority to block the deal but can sway the opinion of anti trust officials at Federal Trade commission, which is looking into whether Google would get unfair marketplace advantage by by owning Double Click.
Now How does this affect us,the regular internet user.
1)Google collects an enormous amount of information on computer users search history and Internet preferences.
2)And DoubleClick plants cookies (which isn’t bad, just used for tracking)in Internet users computer, to understand where they go online and which pages do they view.
Microsoft and the privacy Advocates fear that these two companies can merge their expansive databases regarding peoples Internet activities.
In a way this is a good thing because, Google would be able to serve better ads and provide even better services by understanding the Internet user behavior.
The main concern of Microsoft and other companies more than anything else, is regarding the Advertising Behemoth that would be created once this deal gets through.
Face it boys, Google is looking towards the future and is already referred to the heart of the internet, If you wanna stand up to it, become more innovative like Google is.
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13 Responses to “Microsoft takes Google Head On.”
By Quais on Sep 29, 2007 | Reply
Google is so powerful already, and this deal will give them so much more power that can be scary to think about. It certainly has scared the hell out of poor old Bill Gates
By Vik on Sep 29, 2007 | Reply
Haha! Well said.
I am an avid Google fan, its not that I am against Microsoft, but Google’s Business model is built for the people, hence its so successful.
This deal should go through!
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By Wayne Smallman on Dec 24, 2007 | Reply
The ultimate goal is make adverts less annoying — the accuracy of the targeting is a key element, here.
However, that’s not what’s at stake.
I think the point that Microsoft are most concerned about is that Google would move into a position where they could flood the various channels with such a volume of advertising that they could very well influence pricing to their own advantage.
This is exactly what Microsoft did with the PC market in the 80’s, which serves them well to this day.
Fate it seems, isn’t without a sense of irony…
By Vikram on Dec 24, 2007 | Reply
Well said Wayne.
Google has made some changes and adopted certain policies, that made people label Google as EVIL. Microsoft is already bashed up by many for their monopolistic regime in the PC market.
Although this merger would make Google an advertising power house, I see them using this for mutual advantage for them and their users.
Unlike Microsoft, who have had a history of releasing softwares that need updates quite often, Google will do its best to make its services very efficient, to stay on the top of the game.
This would be an interesting merger to follow!
By Kaleb on Dec 25, 2007 | Reply
Microsoft is just scared that the company that is going to have all the control is a benevolent one.
Just look at their corporate philosophy, specifically number six.
By Vikram on Dec 25, 2007 | Reply
Kaleb, I had not seen Google’s Corporate Philosophy before. I read it, and found it really interesting.
Thanks for the link.
By Wayne Smallman on Dec 25, 2007 | Reply
Bigger challenges lie ahead for Google. Much of the software they’ve produced is relatively small and so far free of major problems.
But in the software industry, that rarely lasts. And at some point, Google will make a mistake.
However, it’s not so much the mistake they will make, but how they respond which is going to be the most telling story…
By Vikram on Dec 25, 2007 | Reply
@Wayne
Google has always been a major online “services” player. Even now the softwares they are experimenting with are mostly deemed as online services.
Also with the kind of expertise and reach they have and a huge database of user behavior, I dont see them making a mistake while creating a software.
Did you know that the free Google Maps helpline, which actually costs them money and isnt profitable, is run to test a new voice recognition software they are developing?
These guys know what they are doing. They are like ducks really, calm and steady above the water, but aggressively moving their legs below it.
Its tough to beat their approach and reach!
By Wayne Smallman on Dec 25, 2007 | Reply
Like any other business, Google aren’t wholly altruistic.
I’ve been writing about Google for a number of years, and the one underlying theme is one Google positioning themselves as an enabler — or the glue to other services.
When you look at the software that Google have in their portfolio, none are even remotely comparable in the number of features or scale of code base to even the most modest Microsoft offering.
Once we see Google moving into those areas, that’s when we’re going to see security lapses and customer data loss…
By Vikram on Dec 25, 2007 | Reply
I see where you are coming from here Wayne. However, I think Google may not take that plunge at all.
They know that MS has deep penetration in desktop related software, and may not venture into that territory.They are looking to take everything online.
Chances are, what Microsoft is to Desktop software, Google would be to Online “services” and software, but still thats quite far away.
Speaking of which you have inspired me once again to write a post about Trends on Internet in 2008.
Speaking of which,I see you have some predictions about Technology in 2008, would you be kind enough to post that link in a comment.
From next month I am going to start Speed-Linking with Fellow Bloggers. I would like to include that in the list!