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The Rise of Google

The article starts with the author's realization that Microsoft is no longer a fearsome entity in the tech world. He describes a conversation with a young startup founder who doesn't understand why anyone would be afraid of Microsoft. This reflects the shift in power, with Google now occupying the position of the dominant force.

• Google's dominance is described as a "big man in town" scenario, where only one company can hold the top spot.
• Google's rise to power is attributed to its innovative products, like Gmail, which showcased their ability to do more than just search.
• Gmail also demonstrated the potential of web-based software, paving the way for the decline of the desktop software era.

The Demise of Desktop Software

The article further explains the factors contributing to the downfall of Microsoft's desktop-centric approach. The advent of broadband Internet and the rise of web-based applications, fueled by "Ajax" (Asynchronous JavaScript and XML), made the desktop a less critical component of the tech landscape.

• The "x" in Ajax refers to XMLHttpRequest, a technology developed by Microsoft in the late 90s for Outlook, ironically becoming a key driver for the shift towards web apps.
• Javascript, a programming language running in the browser, played a crucial role in the development of Ajax. Despite Microsoft's efforts to limit Javascript, the open-source community countered by creating libraries that worked around Explorer's limitations.
• The increased accessibility of fast Internet connections made it less necessary to rely on desktop software for many tasks.

The Apple Factor

The article also credits Apple's resurgence with contributing to Microsoft's decline. Apple's OS X operating system and its innovative products, particularly laptops, have captured the attention of tech-savvy individuals, making Windows a less appealing choice.

• Apple's dominance is seen in the use of Macs among startups and computer professionals, further diminishing the relevance of Microsoft's products.
• Apple's success in the music market, with the iPod and iTunes, and its expansion into mobile devices with the iPhone, have solidified Apple's position as a major player in the tech world.

Microsoft's Missed Opportunity

The author believes that Microsoft had the potential to regain its dominance but missed crucial opportunities. He suggests that Microsoft could have acquired promising web 2.0 startups and focused on developing web-based products, similar to Google. However, Microsoft's reluctance to embrace this shift and their reliance on their traditional strengths in the desktop world ultimately led to their decline.

The Legacy of Microsoft

While Microsoft still holds a significant market share and generates substantial revenue, it is argued that the company is no longer a force to be reckoned with in the tech world. The rise of Google, the shift towards web-based applications, and the resurgence of Apple have created a new landscape, where Microsoft has lost its dominance.

• The author acknowledges that Microsoft's software may still be viable for certain users, but argues that its influence is diminishing rapidly in a world increasingly dominated by Google and Apple.
• The era of monopoly in the software industry, which Microsoft inherited from IBM, appears to be coming to an end, bringing a sense of optimism and innovation to the tech landscape.