Tuesday, February 03, 2009

Microsoft losing online battle

Microsoft is loosing the online battle. First and foremost, they're losing it to Google but (maybe a wee bit of a surprise), Apple is regaining authority on the web as well. A recent stat analysis by Net Applications showed that the Internet Explorer marketshare has dropped to an all time low of just (cough) 67,55% amongs the surfing crowd.

Most notable online competitor of course is the Mozilla Firefox, with a 21,53% market share. Take heed, Firefox is not the adversary from the old days, Netscape (which is down to a mere 0.57%), but a Google funded open source community thingy, which is rapidly reaching its end of life status. Chances are it will eventually be replaced with Google Chrome, which is up from nowt to 1.12%. As said in the introduction, Apple is slowly gaining weight again, with its popular iPhone and iPods, more and more people start the like the Apple way of life. In the last year, the Safari webbrowser increased it's market share from 5,82 to 8,29%.

Mind you, we're talking percentages here of web broswer users, so every percent counts for tens of millions of users. The image below is a summary of the first and last line of the Net Application results, showing the statistics for January 2008 (topline) and January 2009 (bottom line).

The upside of losing millions of customers

What we're looking at is a bunch of statistics, numbers and percentages. However, when you translate it, Microsoft has lost millions of customers on the online market in the past year. However, this loss may hold a bright spot for Microsoft in the European Union.

Microsoft and the European Union have been clashing heads over Microsoft's market dominance for years on end now. The EU has been investigating to see if the company has taken advantage of its position by offering the Internet Explorer as an integral feature of its Windows OS and deliberately straying away from internet standards making other browsers to work incorrectly.

Microsoft has noted that it's marketshare is going down and isn't as oblivious as it was before, hence there can be no talk of unfair competition.

Dominance or Survival?

Well, we've taken out a few million IE users, so what? Microsoft still is the preferred supplier to the vast majority of websurfers. What's the big deal?

The big deal is that we're seeing the first signs of Microsoft loosing the online battle, the war of the web. And they're loosing it to Google. I've written a few blogposts on this before (see referal list below) as I wrote that Microsoft desperately needs the cooperation with Yahoo to strengthen its online position.

More blogposts on Google, Microsoft & Yahoo:

Beware of Snakes dressed as Spiders

A lot of people I know are welcoming the downfall of Microsoft and Internet Explorer. Throughout the web we're familiar with the anti Microsoft campaigns, the Bill Gates parodies and we all cheer the efforts of the European Union to crack Microsoft's market position, but in the mean time, Google crawls its way to the top. Just earlier today I wrote how Google teamed up with Nasa to get Mars into Google Earth and in November I blogged the Google Flu tracker, which they'd developed in close cooperation with the government.

Whereas Microsoft seems to get the full load from Governments, they're actually helping Google to take over the position...

and worse.

More blogposts on Google's rising dominance:

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1 Comments:

Blogger Christian Renaud said...

Veejay,

Excellent post as usual.

I suspect that there are two internal 'camps' at MSFT. One are the people who built the dominant marketshare and therefore think that they are unassailable, and the other, the young-turks who see the impending threat from every dot-com that comes along.

They have an installed base that they can steer in one direction or another, and an enviable position in the value chain for undermining other companies' technology, however it may be in their best interest to have a strong competitor for no other reason that to get the regulators off their back so they can go make money versus fighting with idealistic bureaucrats. I'd take a 20% share competitor (and the requisite drop in revenues) if that would free me up to be able to do whatever product strategy and direction I chose best for my company. Otherwise, regulators with little understanding of business, and less of technology, will be artificially dictating technology to large swaths of society with no market demand repercussions.

Keep up the excellent blogging. Christian

Wednesday, February 04, 2009 3:38:00 PM  

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