Google Chrome: Direct attack on Microsoft
Posted
Sep 02 2008, 12:28 AM
by
Andrew Horowitz
Rating:
The browser war just heated up. Actually, it has now gone nuclear. It was one thing when open-source Mozilla had a "cute" idea for an Internet browser and was considered a fringe product, but it's now quite another since they have effectively stolen approximately 20% of the market share over the past five years or so.
Now Google, the market share leader for Internet search, is looking to chip away even more from Microsoft's foothold by introducing a browser of their own. Available in a beta version, Chrome is Google's open-source browser entry and hopes to gain traction with its legion of loyal followers that are devoted Google-ites. That could easily push it into third place, just behind Firefox but ahead of Netscape, Opera and Safari.
This is especially worrisome as Microsoft's Internet Explorer has been consistently losing market share since 2002, when it had a 90% share of the browser market. That has since dropped to 72%.
What is interesting to note though is that Google chose to introduce and announce the new browser through a comic book-styled presentation. Was this designed to specifically taunt Microsoft or does it mean that perhaps Google isn't taking this initiative too seriously? If the comic book entrance is any indication and if that is added to the somewhat sloppy product announcement (admittedly sent out in error and earlier than was planned), it would appear that Google believes that this is nothing special. Maybe Google's management believes it is just another project with no direct target. Yet, Michael Arrington, founder of the popular TechCrunch blog, believes that this is clearly a direct attack on Microsoft and more specifically an assault on Windows:
Make no mistake. The cute comic book and the touchy-feely talk about user experience is little more than a coat of paint on top of a monumental hatred of Microsoft.
Chrome, the Webkit-based Google browser that launches tomorrow at Google.com/chrome, will give them a real foothold on the desktop and way more control over how web applications perform. While it seems that Chrome is aimed at IE and Firefox, the target is really Windows.
The comic book is somewhat simply designed, with a blue monotone coloring and generic enough as it discusses what most would expect: safety, speed, reliability and the benefit that it is built from the ground up. These are clearly the hot buttons for any user, but I can't help to notice the similarities to this and impassioned promises put forth in political speeches. The same speeches with just as many pokes and jabs skillfully directed at their opponent(s). The good news is that many of the answers surrounding Chrome's abilities will soon be known as blogs will surely be quickly filled with the results of stress tests and side-by-side comparisons.
On the investment side of the discussion, Microsoft does not need any more negative PR. Between the relentless attacks by Apple, which has effectively created consumer doubt, to the more recent Yahoo fiasco, the stock has been under significant pressure. Over the next few days, it will be interesting to watch how the introduction of Chrome will play out and affect both Google's and Microsoft's stock price.
In his closing comments in the same article referenced, Arrington also expressed his thoughts on Google's outlook, though I can't help to wonder if Google has finally "jumped-the-shark" with Chrome:
I love Chrome already and I haven’t even tried it yet (nor will I be using it much soon, since it will only work on Windows for now). But Google’s days of unchecked growth may soon come to an end. They are quickly becoming the new Microsoft.
The biggest concern I see is the potential for Google to have a greater ability to access buying and shopping habits. This could be very useful to a company that makes its money through advertising revenue and one that is intimately involved with online shopping. While subliminal advertising is illegal, pattern recognition algorithms are not and are used frequently to help suggest opportunities through advertising supported search engines and retail websites.
A good example of this is the always "helpful" feature by Amazon that presents you several books that you may also like, "based on your purchase history." Does this concern you? Are you going to run and download the Chrome browser?
Related Reading:
Yahoo's stock: Back to pre-Yahoo levels
The Disciplined Investor Podcast with MSN Money
Microsoft's new marketing weapon: Seinfeld
Disclosure: Horowitz & Company clients may hold LONG position of securities mentioned as of the publish date.
Andrew Horowitz is a money manager and the founder of Horowitz & Company. He is also the author of the bestselling book, The Disciplined Investor . Check out his latest investment idea or listen in as he hosts, The Disciplined Investor Podcast.