The software industry does not lend itself well to direct competition. One technology will usually be the winner for a particular set of use-cases and others in

The software industry does not lend itself well to direct competition. One technology will usually be the winner for a particular set of use-cases and others incompatible or lagging too far behind. If you don't distinguish yourself on use-cases it's a losing battle against the establishment. A better strategy is to find use-cases that make your competitor obsolete. Microsoft lost some of its significance when Google started producing office software for the web. Google lost some of its significance as the starting point of the web when Facebook became successful. Microsoft could make Google less relevant in search by commoditizing and commercializing Bing's search technology as part of Azure. Google is dependent on it's screen real-estate and has been reluctant to open up APIs to developers. That's where Google is weak and vulnerable, while it's one of Microsoft's core strengths.