The Internet is so vast that the only real way to realize its usefulness is through search. These days when people want to find something out they go straight to their computer. They go through layer upon layer of Microsoft software, all those mouse moves, clicks and keypresses, to get to what? Google.
If I were Bill Gates there'd be a few more holes in the walls at Microsoft.
1. The user turns on the computer and 90% of the time they're going into Windows. At this point, can they search the Internet ? No.
2. So they double click Internet Explorer. At this point can they get what they want? It seems not.
3. They're taken to msn.com. This is a portal that offers a search capability. But is this good enough for the consumer? It appears not.
4. They go to Google. Using Internet Explorer, Microsoft's own browser software, and DHTML, a technology Microsoft mostly pioneered. Isn't that a slap in the face?
Those are very real opportunities that Microsoft have missed to get customers.
I read the other day that Gartner think Microsoft missed an opportunity to turn their killing of WinFS into a public anouncement reinforcing their focus on Live services. What this means is, they think the reason Microsoft dumped WinFS was because it just isn't needed considering most people these days work in the browser and not on their own filing system.
I really don't agree with them. Search is a very primitive way to find information. WinFS was a very innovative move towards making information organization more efficient, improving the exposure of file metadata and linking it together in ways that search cannot. We need to move beyond search. Ideas like WinFS represent new opportunities for Microsoft. This is client-rich technology that Microsoft does best. Dropping it or putting it on the backburner was a bad idea.
If Microsoft can innovate beyond search and integrate this into the operating system, then they will capture a whole new customer base at stage 1 - before they even click on Internet Explorer.
Given this is all it would take to derail Google, remind me again why Google's stock price is so high?