Google leads, Microsoft follows

So Microsoft is getting into municipal wi-fi services. There have been some strange postings on the internet about this, expressing the opinion that this is not just a matter of Microsoft following Google. They're wrong. That's exactly what Microsoft is doing.

Business Week Portland reporter Olga Kharif says in a posting:

"The move by Microsoft ... is more than just a me-too gesture following Google's (GOOG) decision to build out ... a Wi-Fi network in San Francisco. "

But there is no evidence in the article that I can see to support this argument. Kharif goes on to say people in the municipal wi-fi market can capture more eyeballs to home page and search products.  If so, then Google's wi-fi efforts, especially if it decides to go nationwide, will hurt Microsoft. So Microsoft decided it had better get into the business as well by offering wi-fi services that will  try to circumvent this. Isn't that the definition of following Google's lead?

Sorry, but I think Kharif's statement that this is not just a "me-too" move was either inspired by the fact that she bought Microsoft's spin on this, or just made the statement to sound like she has a different angle on the story.

This is Microsoft's classic strategy. It did not get into applications until after Lotus Development and Word Perfect led the way. It got into browsers after Netscape led the way. It didn't take search seriously until Google showed the potential. It came out with Zune after Apple Computer showed how it's done.

The difference, of course, is that Microsoft used its operating system as leverage to give a boost to its new offerings, while its competitors fumbled in their panic at Microsoft's direct attacks.

Microsoft's OS lead is not giving it the same advantage these days. Kharif points out in her article that Microsoft is falling behind Google. Despite the fact that it puts MSN as the default home page when you use Windows/Internet Explorer, MSN and MSN Search are losing ground to Google. People are not as easily led to the default settings anymore.

Plus, Google doesn't seem to be stumbling much.

In fact, Google seems to be more prone to buying leading companies these days instead of trying to re-invent everything the way Microsoft does. Does anyone think Zune really has much of a chance?

Sorry, Mr. Ballmer, but the old strategy doesn't seem to work any more. What you ought to do is start following Google's latest strategy. Buy, don't invent.

As for linking up with wi-fi, it looks like a weak defensive move to me. Google did it first.