Microsoft’s cash cow in both business and consumer software is their Office Suite of productivity tools. Word and Excel are the de facto standards as vehicle of knowledge packaging and even transfer. But in knowledge transfer PDF is gaining ground.

I think that Google is not aiming to be the contender of Microsoft in the productivity tools. Google is aiming for something else. They are going for the the new computing platform of the mobile in the emerging regions. And office productivity is easier to implement on a web 2.0 application, for these thin clients.

Of course Microsoft is investing heavily in online productivity tools. And with Hotmail and MSN they are serious contenders for a strong market position. And of course they are looking at emerging regions. But their business model is their main obstacle.

Google’s business model is ‘first people have to use it, then we will figure out how to make money later’. Microsoft’s business model is selling software by in packages. In their product development process they have to satisfy the financials immediately.

Google’s strategy is to gain ground in emerging regions like Africa. That strategy is what they are focussing on. The strategy of Microsoft is to make money on emerging regions. That is THE fundamental difference.