Microsoft Responds to Gmail
November 6, 2009
I heard about a price cut last week. I noticed an article by Dina Bass that provided more information. In “Microsoft Cuts E-Mail Price, a Bid to Ward Off Google”, I learned that in Bloomberg’s view, Google is making life a bit unpleasant for Microsoft. Ms. Bass wrote:
Microsoft and Google are seeking customers that want to outsource the management of e-mail systems. The competition has helped buyers negotiate lower rates from Microsoft. Even before the price cut, Rexel SA got Microsoft to slash about 30 percent off its cost to roughly match Google’s offer, said Olivier Baldassari, Rexel’s chief information officer. “Google somehow in the process disrupted the landscape and forced Microsoft to become a bit more aggressive,” Baldassari said. “Microsoft has been very aggressive in terms of price.”
Google and Microsoft have similar views about capturing market share. In today’s financial climate, price cuts are potent weapons. Forget deflation. The goal is to do whatever it takes to win customers. The notion of paying customers is not a new one for Microsoft. Google has its own variants. You don’t need a book on “free-conomics” to understand how predatory methods work.
Good news for some, but I think the road kill on the information highway will increase as these two semi trucks speed forward. Just my opinion.
Stephen Arnold, November 5, 2009
Dear OSHA, no one paid to write this story about the danger on the information highway to small critters in the email game.
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