BUSINESS

Technological Giants

Table of Contents

Introduction2

Business Models3

Financial Ratio Analysis of Google5

Financial Ratio Analysis of Microsoft7

Analysis9

Profitability9

Liquidity9

Per Share or Investor Ratios10

Assets Management10

Conclusion11

Appendix13

Financial Highlights - Google Inc.13

Financial Highlights - Microsoft Inc.16

Technological Giants

Introduction

The growing battle between Google and Microsoft calls to mind the character of competition within the tech trade and where things are headed. Microsoft is engaged in developing, producing, licensing, and supporting a variety of software merchandise and services. Microsoft's merchandise embody operating systems for private computers, servers, phones, and different devices; server applications for distributed computing environments; productivity applications; business applications; desktop and server management tools; software development tools; video games; and on-line advertising. Microsoft conducts its businesses through 5 reportable segments: Windows & Windows Live Division, Server and Tools, on-line Services Division, Microsoft Business Division, and Entertainment and Devices Division.

Google provides advertising and world net search services and hosted applications. Google provides users with merchandise and services that enable folks to seek out, create, and organize info. additionally, Google provides advertisers with ways in which to deliver on-line ads, additionally as offline ads on tv, to customers across Google sites and thru the Google Network, a network of on-line and offline third parties that use its advertising programs to deliver ads with their search results and content. Google provides the web and offline members of its Google Network with its Google AdSense programs, that embody AdSense for search and AdSense for content on-line services.

Business Models

A business model is the "way of doing business," pun intended, by which a company generates income. It describes in detail how the company makes money by clearly defining its place in the value chain. The business model is built from various components of the business, which include entrepreneurship, strategy, economics, finance, operations, competitive strategy, marketing strategy and sustainable growth. Simply the business model describes how the business is positioning itself in the value chain within their industry and how it's going to provide for themselves, i.e., make a profit. In the most general terms, the business model - a method of sustainable business.

Microsoft

Over the years, Microsoft has conducted its business as pure software company; however, in recent years there has been a transition from a traditional software company to offer the software together with the services. For few years, Microsoft will continue to sell traditional software, but slowly and gradually due to the fierce technological competition and requirement, it is moving towards a hybrid model.

Microsoft is experiencing slow transition to a hosted service provision, which forced on to the company by the nature of the competition. With the entrenched business enterprise and consumer software Microsoft cannot move quickly to offer a hosted service, like its competitors such as Google and Salesforce.com, which started as service providers based on the Web. Meanwhile, the market for corporate software is clearly moving in that direction, as companies become more comfortable, in addition to e-mail and surf, get online and other services.

Transformation will affect every area of business to Microsoft, but some changes will be noticeable ...