Deterrence

Today’s Wall Street Journal includes a great article on the cold war between Google and Microsoft (subscription required). The author looks at why Microsoft is launching a free, online-only version of Office, and why Google is responding in part by launching its own OS. He believes that “neither Google nor Microsoft really have an interest in challenging each other’s core franchises if it means risk to their own. Their posturing is primarily defensive—fear of loss is greater than hope of gain.”

A good read for a Wednesday morning.