Microsoft have always been accused of resting on it's laurels and cashing in on someone else's hard work and ideas. When this happens, they do two things. First, they try and buy the new upstart out with their vast reserves of cash. If this is refused, they get tough and release something similar and again use their marketing muscle to squeeze the competition out.
There have been many casualties along the way, such as Netscape Navigator which was considered a superior web browser, proven by it's peak of 80% market share. Microsoft then launched Windows 95 with their own browser Explorer bundled for free. Despite Netscape's functional superiority, Explorer eventually came out as the winner with it's freebie and vast distribution network.
This is bad news for consumers where Microsoft's inferior products are stifling the competition. However, this has not gone without notice, as the EU recently charged the company for breach of monopoly rules with a $690m fine.
But Google is a different beast altogether. Previously, competition were dependent on the Windows OS. Google is not. Because it's applications are based online, it can work though any browser, sweeping away Microsoft's advantage.
It's no small wonder why Microsoft has reluctantly been dragged into online applications. But, with Google encroaching in it's comfort zone with Chrome OS, they have had to act. And so we have Office online (albeit a Lite version) vs Google Docs.
