Is Microsoft's Impact On The Economy Bigger Than Google's? - InformationWeek

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1/25/2007
08:22 PM
Stephen Wellman
Stephen Wellman
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Is Microsoft's Impact On The Economy Bigger Than Google's?

Donna Bogatin asks a thought-provoking question: Who has more impact on the economy, Microsoft or Google? During his annual predictions for 2007, futurist Mark Anderson said that Google and Microsoft represent two very different types of money. Microsoft is plumbing money, Anderson said, while Google is

Donna Bogatin asks a thought-provoking question: Who has more impact on the economy, Microsoft or Google?

During his annual predictions for 2007, futurist Mark Anderson said that Google and Microsoft represent two very different types of money. Microsoft is plumbing money, Anderson said, while Google is ad money.A Microsoft-commisioned study claims the following:

In New York, each dollar of Windows Vista-related revenue earned by Microsoft in 2007 will generate more than $19 in revenue for the ecosystem beyond Microsoft. We expect that in the first year of Windows Vista shipments, this ecosystem will sell more than $7 billion of Windows Vista-related products and services in New York.

That's pretty impressive and if cast against both the U.S. and world economies, it's obvious that Microsoft's Vista release will be good for the global IT market.

Looking back at the Anderson dinner last month:

On the technology front, Anderson differentiated between Microsoft, a company that is "making plumbing," and Google, a "river of money." This means that Microsoft makes technology that businesses and consumers need for everyday tasks while Google is sitting on top of a macro-trend as advertising dollars drift online.

Anderson stressed that "plumbing money" is different than ad money and that the differences in money would continue to define these two companies. Countering prevailing thinking, Anderson said that Microsoft isn't going anywhere. He also repeated an earlier warning about Google, calling it one of the "most fragile" financial structures ever.

Microsoft's impact on the economy is still bigger than Google's, but is Anderson right? Will Microsoft remain the backbone of the global IT market? Or will Google soon become the bigger player?

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