For the first time ever today Google as a company has become more valuable than fellow tech giant Microsoft. While this might only be temporary for now, it reflects a much bigger pattern that’s been shaping for the last several months.

Google’s stock has been slowly rising while Microsoft has been doing pretty much the exact opposite. Their paths were destined to cross eventually.

Now that Google has the high ground, what can it do to maintain its advantage?

The Future of Google

Google is now more valuable than Microsoft.Google has done well in mobile markets and are expected to continue developing technology on that front. The same phone I’ve used for over a year now is actually already co-branded with Google.

I don’t expect Google to compete with the monster that is iPhone but no one else can really compete with that either, especially Microsoft. There is room for them to grow though.

Google also has a knack for pushing out new technology. For instance they’ve been developing a pair of glasses that keep you connected as you go about your daily business, completely hands free.

They could also try to capitalize off the recent flop of Apple Maps. There has already been a call for Google Maps to release on the iOS6, and this is a great chance for Google to stand out against its competitors.

What Can Microsoft Do?

Microsoft is now less valuable than Google.Microsoft has the added burden of fighting the stigma that the PC industry is dying. That alone might account for the dip in stock price.

They have also made a big push for their search engine Bing. A recent wave of side by side comparisons has been done trying to prove their search supremacy and convince users to make the switch.

Microsoft is also preparing for its release of Windows 8. Let’s be honest though, previous operating systems from Microsoft have been pretty or miss depending on the edition.

If Windows 8 is everything that Microsoft claims it is, it could be a small turning point for the company. If nothing else it can serve as a rallying point for potential investors to get behind.

Microsoft is only a few years off from launching the successor to the X Box as well. While still not announced, launching a next generation gaming system should be a huge boon for the company.

Obviously both companies have the potential and resources to continue trying to outgun each other. Both have a fully integrated revenue source in the form of paid search advertising. It would seem Google has the momentum and market conditions on its side to keep outpacing its competition though.

What can either company do to gain a competitive edge? Does either company have a chance to catch Apple?

photo credit: Robert Scoble via photopin cc
photo credit: hunxue-er via photopin cc

Rob Hughes
Rob Hughes is a Paid Search Analyst at Big Leap who enjoys the creative aspect of online paid advertising. In his free time, Rob is a 3x Intramural Champion, a 17x Intramural Loser, and an avid climber of local mountains.