Wednesday, July 08, 2009

Google vs Microsoft: How to Earn Money?

I could find a thought provoking blog entry written by Saul Hansell: Does Being Free Cheapen Google’s Brand? From the title, you can understand that the writer has talked about Google’s way of earning money. In good old days, Microsoft and Apple used to fight and both of them charged good money from consumers. Google emerged with a new strategy. It started to give everything free. Think of Gmail. I am the biggest fan of Blogger. Here, you can get huge amount of space and almost unlimited bandwidth and Google does not charge anything for that. Instead, its main goal is to earn money through its advertisement programs. So, you get many amazing applications from Google that are excellent. One of my favorite things is the gmail for Domains.

Microsoft has opposite style of earning money. They love to sell their products. That is perhaps why they lost to Google in Internet. Microsoft is not good at giving free products.

With the arrival of Chrome OS, we will see which business model thrives in our time.

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