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The question that seems more important than all the rest is "Can I afford to switch vendors?" Let's consider some examples. When printers wear out, you can buy new printers from whoever with little concern for switching cost. If you're unhappy with your current servers, you can replace them with models from lots of vendors (Sun, Dell, HP, IBM, others) without worrying too much about compatibility (well, you may have some racking and cabling pain); the issues are price, performance, and support. If you're grouchy about your OS, you can move between *n*x flavors like Debian, SUSE, and Solaris pretty freely in most (granted, not all) cases; with maybe some deployment and sysadmin pain. If you're unhappy with your desktop environment, well too bad, you're stuck. Your users are too deeply bought into some combination of Outlook calendaring and Excel macros and Sharepoint collab. The price of rebuilding the whole environment is simply too high for most businesses to consider. If you're unhappy with your Oracle licensing charges, you probably have to suck it up and deal with it. SQL is a good technology but a lousy standard, offering near-zero interoperability; the cost of re-tooling your apps so they'll run on someone else's database is probably unthinkable. Like they say, you date your systems vendor but you marry Larry Ellison.

Last week, Microsoft reported that revenue from the Microsoft business division (MBD) grew 20% year over year to US$4.95 billion in the most recent quarter. That is more than Microsoft's client division, which makes Windows. Most of MBD's revenue comes from Office, though Microsoft doesn't break out an exact percentage. Windows has 1 billion users. Office has only 500 million. Consumers will be able to subscribe to Office Web and even get it at a discount price, provided they are willing to view Web ads. Business customers seeking "more manageability and control" will be able to buy subscriptions to Office Web similar to the subscription Microsoft offers for a bundle combining Web-based versions of Exchange and SharePoint. That costs $3 per user per month. Enterprises may also get Office Web through conventional volume licensing software contracts, which will allow them to either install Office on desktop and other client PCs, or have Microsoft host it on their server. Unlike non-Microsoft products (Google Docs - ZOHO - BuzzWord), Office Web will guarantee that the "viewing experience is fantastic" and that formatting and meta data from Office documents don't "get munged up,". Office Web will provide a superior "end-to-end solution" by letting users view and edit documents whenever they want to, including browsers such as Firefox, Internet Explorer and Safari and Windows Mobile smart phones. The Office Web focus will be on business productivity according to Chris Capossela. The Office Web experience can be enhanced by Silverlight (Microsoft RiA).

Nick Carr gives us an insight into the future of the Web from the perspecive of Google's business model. No doubt the Chrome "omnibar" is revolutionary in th esimple way it leverages Google search and index services to extend web surfers experience. Truly great stuff tha tNick ties back into the basic business model of Google. What Nick doesn't cover is how Chorme is desinged to bridge that gap between Web surfing and next generation Web Applications (RiA). Microsoft is in position to dominate this next generation, while Chrome represents Google's first step into the fray. Sure, Google dominates consumer applets and services, but RiA represents a model for enterprise and corporate business systems moving their core to the Web. It's a big shift. And Google has some serious catching up to do.

It's this natural drive to reduce the cost of complements that, more than anything else, explains Google's strategy. Nearly everything the company does, including building big data centers, buying optical fiber, promoting free Wi-Fi access, fighting copyright restrictions, supporting open source software, launching browsers and satellites, and giving away all sorts of Web services and data, is aimed at reducing the cost and expanding the scope of Internet use. Google wants information to be free because as the cost of information falls it makes more money.

Once you add in better email and calendar support WebEx could become more appealing to the enterprise. PostPath has a Linux based collaboration system built on an AJAX client that doesn't need a browser. Cisco added that the company's strategy is to develop "an integrated collaboration platform designed for how we work today and into the future. And better yet: PostPath's pitch is that it is an Exchange alternative and a "Linux-based corporate email server." Let's read between the lines: Doesn't this sound a lot like an end-run around Microsoft Office, Outlook and Exchange just like Google is trying to do with Google Apps? Cisco probably has no desire to compete head on with Microsoft (or at least admit it), but the company obviously sees something here and coupling PostPath with WebEx could be a threat to Redmond. In fact, Cisco could be a bigger threat to Microsoft in the enterprise than Google. Why? Cisco already sells enterprises a lot of stuff. Isn't a collaboration suite really just an extension of the network?