May 26th, 2006

Isolation of Microsoft

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Microsoft is getting increasingly isolated. Other tech companies are fast building partnerships that may undermine Microsoft’s grasp on the market and consumer share. Google and Dell inked a deal that would pre-install Google software on millions of Dells computers sold henceforth. Google Desktop search software and toolbar, apart from GTalk, Earth Mapping program, Firefox browser, and Norton’s anti-virus will be standard on Dell PCs exposing millions of users to Google and other ancillary products that would have otherwise used Microsoft products.

Similarly, Yahoo and eBay signed a deal that would let Yahoo have exclusivity on branded advertising on eBay and in exchange, Yahoo would use eBay’s Paypal for all transactions for Yahoo services.

Where does Microsoft stand in all of this? Does it need to partner up with other tech companies to maintain its hold on the market or is it strong enough to still brave it out on its own? Windows Vista which supposedly has search capability built into the OS (protested by Google but in vain) might change the equation but we have to see how the market develops. Until then, we just might see a new player that is laying low for now.

Update: Microsoft seems to be eyeing eBay to gain some leverage.

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