Edmund O’Reilly Graphic Design

Microsoft Pays $6 Billion for aQuantive Inc., Gaining on Google for a Slice of the Pie

In what is now the largest acquisition in the company’s history, Microsoft is following in the footsteps of rival juggernaut, Google, by purchasing aQuantive Inc., a leader in Internet ad services.

Google already offers a growing number of online services and applications; it would seem that their goal is to provide quick and easy access to virtually all information that can be found on any computer, anywhere, while allowing users to utilize tools online that once had to be bought in a box at the computer store.

I had said, a few years ago, that software would move from the store shelf to use through the browser. It seemed like a practical solution for access, storage and collaboration. Moreover, I think Google’s products and services are, for the most part, very useful and it appears that Google, as a brand, would be the natural choice for the average person who wants tools with a simple interface and access to these tools (and the user’s creations) from any computer.


While Microsoft has fallen behind Google in the online advertising business, which has been the key to Google’s huge success, this acquisition could help Microsoft gain some ground by offering advertising across several platforms. But Google offers spreadsheet and document creation tools, among other brower-based applications, which may seriously cut into Microsoft’s profits from its flagship Office suite of applications.

And the irony in all the billions of dollars changing hands is that Microsoft, the “Evil Empire”, might be the one corporation that can prevent Google from becoming the only company on the planet with all the information about every single person.

Perhaps the speculation about Microsoft purchasing Yahoo will prove to be the truth, and the purchase could plug a very large hole in Microsoft’s business.

Article by Edmund O'Reilly, posted on 21 May, 2007 at 11:24 am, filed under Business, News, Technology. Bookmark the permalink. Follow any comments here with the RSS feed for this post. Post a comment or leave a trackback: Trackback URL.
 

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