The Two Horsemen of Tech: Google and Apple
For years, the four horsemen of technology were Microsoft (MSFT), Intel (INTC), Dell (DELL) and Cisco (CSCO) (though some argued that IBM was the 4th). The first three dominated the desktop PC environment, while the fourth sold most of the plumbing used on the Internet.
During the past few years, there were debates over whether there were a new four horsemen. As recently as 2007, Cramer suggested that the new big four were Apple, Research in Motion, Google and Amazon.
What’s becoming rapidly clear is that for the foreseeable future, there are really only two horsemen of tech – Apple and Google, who together are poised to dominate almost every significant segment of the industry.
In some ways, it’s amazing to think how quickly Google and Apple have become competitors. It was only last August that Google CEO Eric Schmidt resigned from the Apple board due to potential conflicts of interest. At the time, those conflicts were largely focused on Android and Google Chrome O/S. Now, 9 months later, it seems almost unfathomable to think of Steve Jobs and Eric Schmidt sitting around the same boardroom table.
Today, Google and Apple are vying for virtually every important technology space.
It will be interesting to watch how this plays out. Google taking the “open” approach, much as Microsoft and Dell did in the PC world, while Apple stays in the world of proprietary hardware and software. It's not clear which path will win, and I think it may vary by market. The multi-channel approach of Android is likely to give Google greater market share in mobile and tablet devices over time. And strong partnerships with both television and set-top-box manufacturers may allow Google to succeed in a market where Apple has failed to make headway. Yet the Apple approach has merits. If users view these devices as consumer electronics - like an iPod or a VCR, as opposed to computers, plug and play will be attractive to the mainstream user.
And where are Microsoft, HP, Cisco, RIM and other technology providers during all this? They still play important roles inside the enterprise, but are ceding the key advertising and mobile platforms to Google and Apple, the Two Horsemen of Technology.
During the past few years, there were debates over whether there were a new four horsemen. As recently as 2007, Cramer suggested that the new big four were Apple, Research in Motion, Google and Amazon.
What’s becoming rapidly clear is that for the foreseeable future, there are really only two horsemen of tech – Apple and Google, who together are poised to dominate almost every significant segment of the industry.
In some ways, it’s amazing to think how quickly Google and Apple have become competitors. It was only last August that Google CEO Eric Schmidt resigned from the Apple board due to potential conflicts of interest. At the time, those conflicts were largely focused on Android and Google Chrome O/S. Now, 9 months later, it seems almost unfathomable to think of Steve Jobs and Eric Schmidt sitting around the same boardroom table.
Today, Google and Apple are vying for virtually every important technology space.
- Android is quickly closing the technology gap on the iPhone. And while Apple is working hard to marginalize Adobe’s Flash; Google’s new Froyo version of Android includes Flash support.
- In mobile advertising, the imminent release of Apples iAd platform was a critical factor in the FTC’s approval of Google’s acquisition of AdMob, a target Apple had pursued as well.
- While Apple TV remains a poor stepchild, Google’s announcement last week of Google TV gives them the upper hand, at least in the near term.
- There are rumors that Google is considering an acquisition of Catch Media, providing a platform for users to access music via Android devices. Previously, Apple outbid Google for Lala, a leading provider of streaming music in the cloud. It would not be surprising to see Google soon challenge iTunes with a cloud-based subscription music service.
- And while the iPad is today’s must-have gadget, there will be a wide range of Android-based tablets hitting the market in the coming months
It will be interesting to watch how this plays out. Google taking the “open” approach, much as Microsoft and Dell did in the PC world, while Apple stays in the world of proprietary hardware and software. It's not clear which path will win, and I think it may vary by market. The multi-channel approach of Android is likely to give Google greater market share in mobile and tablet devices over time. And strong partnerships with both television and set-top-box manufacturers may allow Google to succeed in a market where Apple has failed to make headway. Yet the Apple approach has merits. If users view these devices as consumer electronics - like an iPod or a VCR, as opposed to computers, plug and play will be attractive to the mainstream user.
And where are Microsoft, HP, Cisco, RIM and other technology providers during all this? They still play important roles inside the enterprise, but are ceding the key advertising and mobile platforms to Google and Apple, the Two Horsemen of Technology.
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