Microsoft has been nervous about Google's growing power for a long time. The software giant hasn't really been able to make a dent in Google's colossal share of the search market. Now, Google is taking on Microsoft where it lives — in the operating system business. Acer, Elitegroup Computer (ECS), and Asutek plan to introduce new low-cost netbooks that run on Google's operating system Android. The Acer netbooks with Android will be cheaper than the ones that run on Windows, presumably because Acer won't have to lease the operating system from Microsoft.
Google has also been challenging Microsoft with its cloud applications that provide online based document, spreadsheet, and other office applications.
Microsoft CEO Steve Ballmer can't be feeling very happy about all of this. A few years ago he told me that "Google was a nice little company." Balmer explained that he meant that Microsoft had once been a nice little company and then they became the subject of anti-trust law suits. It was shortly after that comment that Microsoft began raising red flags about Google's growing power and pushing for anti-trust suits against the search engine giant.
Microsoft had its own announcement today. It's going to release its new operating system Windows 7 on October 22nd. Hopefully, consumers will be happier with it than they were with Vista, which had many computer users staring cross eyed at their computer screens.