Despite recent search developments and a respectable third-place market market share, Microsoft is still not a competitor in Google’s eyes. Addressing the audience at the Technology Alliance luncheon yesterday, Google’s chief executive Eric Schmidt identified Yahoo! as their main competitor. He downplayed the notion of Microsoft as a main competitor in the search market. Schmidt explained that Google’s focus is to innovate and less concerned with competiting corporations.
Microsoft, however, seems to be very focused on Google. At the D3 conference in Carlsbad, Bill Gates expressed skepticsm over Google’s ability to continue its domination of the search market. Both Bill Gates and Steve Ballmer have previously said they will continue to improve Microsoft’s search offerings.
Google may not consider Microsoft a competitor right now. But with Microsoft releasing tools like Microsoft Toolbar Suite and developing products like Virtual Earth, it won’t take long before Microsoft forces Google to take notice.