Cringely: Biggest threat to Microsoft might not be Google at all, but Apple
Friday, August 26, 2005 - 04:39 PM EDT"What the heck Google is up to is a favorite topic of conversation this week in high tech circles. What's driving this is a combination of things including the new Google Toolbar, Gtalk, but most especially the company's announcement that it will shortly sell another $4 billion in shares," Robert X. Cringely writes for PBS. "What does Google plan to do with all that money, people are wondering?"
"Nothing at all," Cringely writes. "It's just a hunch of mine, but with more than $2.5 billion in cash already on-hand, I don't think Google has any plans at all for that extra $4 billion. The company just knows that this is the time when it can probably get the most money for the least stock EVER, so selling a few million extra shares now is just a cheap insurance policy against some later day when Wall Street might not be so enamored of the giant search company."
Cringely writes, "Microsoft is totally obsessed with Google because Bill Gates is obsessed with Google. In a way, Bill needs a bogeycompany like Google to motivate the troops, since they are no longer being wowed by Microsoft's stock performance. Not long ago, I spoke with someone from MSN who said the mood there was so tight that his co-workers were acting like 'mad dogs.' Bow-wow. But what if everyone is mainly wrong?"
"Here's where I go out on a limb, but I think Microsoft's clearest threat still comes from Apple, though not the way most people expect. Yes, Apple is about to take Microsoft to the woodshed when it comes to Internet movie distribution. Yes, Apple already super-dominates the music player market where Microsoft doesn't even really exist. But the real jewel is one Microsoft has to lose, not gain -- the PC platform, itself," Cringely writes. "Microsoft is woefully late with its next Windows upgrade, while Apple is far ahead with even the current version of OS X. Apple is moving to Intel processors and hackers have already shown that OS X can run fine on non-Apple hardware. But Apple doesn't want to give up its profitable hardware business to compete head-to-head with Microsoft. And remember, Apple totally dominates the portable music player market and will probably sell 25 million iPods or more this year."
Cringley writes, "Every one of those iPods is a bootable drive. What if Apple introduces OS 10.5, its next super-duper operating system release, and at the same time starts loading FOR FREE the current operating system version -- OS 10.4 -- on every new iPod in a version that runs on generic Intel boxes? What if they also make 10.4 a free download through the iTunes Music Store?"
Cringely's full article: http://www.pbs.org/cringely/pulpit/pulpit20050825.html
MacDailyNews Take: Interesting? Crazy? Plausible? What do you think? To work, Mac OS X 10.5 Leopard would have to be very compelling, as Mac OS X 104 Tiger is already a very fine operating system. Heck, Mac OS X 10.2 Jaguar was a very fine OS. What if Apple did the Cringely's freebee with Mac OS X 10.2 instead upon the release of Mac OS X 10.5?
Related articles:
Apple CEO Steve Jobs' ultimate goal: 'to take back the computer business from Microsoft' - June 16, 2005
The OS Wars heat up: Apple paves way to release Mac OS X for off-the-shelf x86 hardware - June 14, 2005
iPod success opens door to Mac OS X on Intel - March 04, 2004

What is that guy smokin'?