Should the Facebook-Microsoft Alliance Worry Google?

Ben Bajarin / July 7th, 2011

The Facebook announcement of Skype integration was also an announcement in the next stage of the relationship between Microsoft and Facebook.

Austin Carr wrote an interesting article this morning over at Fast Company titled: “Why The Facebook-Microsoft Alliance Should Worry Google.” The article is worth reading and I agree with several conclusions.

What I think many people overlook or perhaps don’t realize is that Facebook and Google really are competitors. Google wants to monopolize consumers Internet time in their services walled garden and Facebook wants to do the same.

Both of them entered their strategies differently with Google focusing on search and Facebook focusing on social relationships.

There is a heated debate, which we will cover in more detail here at Tech.pinions in the coming month’s, over the closed vs. the open web. I’ve spoken publicly about this at several industry summits and I will share more thoughts in an upcoming column.

There was one quote in particular in Carr’s article from Zuckerberg I wanted to point out.

“We have a really good relationship with Microsoft,” Zuckerberg said. “Now that you [Skype] are owned by Microsoft, that gives us the sense of stability that it’s going to be with a company we can trust–that we know we have a longstanding relationship with.”

Mark Zuckerberg used an interesting word toward the end of that quote “a company we can TRUST.” I’ve commented frequently on the industry mumblings we hear about a lack of trust in Google and it was interesting that Zuckerberg hinted that Facebook trusts Microsoft more than Google.

What’s more concerning -if true- are the comments from Eric Schmidt who seems to be dismissing Facebook as a viable Google competitor. Any time a technology gets engrained into our social fabric, as Facebook and Google have, the more lasting power they have. It is unwise for anyone executives or leaders at Google to underestimate the many business models still to be implemented by Facebook.

Facebook’s alliance with Microsoft is a strong one and one that we will be watching very closely as an analyst firm, especially given its strategic nature.

Ben Bajarin

Ben Bajarin is a Principal Analyst and the head of primary research at Creative Strategies, Inc - An industry analysis, market intelligence and research firm located in Silicon Valley. His primary focus is consumer technology and market trend research and he is responsible for studying over 30 countries. Full Bio
Protected by Gerben Law