Microsoft and Google appear to be arming up for a whole new cold war of their own à la Coca Cola vs Pepsi. The outcome of their current hyper-competition may well determine the way we use information technology in the future.
As we all know, Google is currently the leader in internet services and internet-based, advertising-supported software while Microsoft remains the giant only when it comes to PC software. Microsoft tries to give its internet based products a boost through Internet Explorer. While Google used to be just a search engine, it has entered Microsoft territory with its free internet-based and often superior software products. By buying Writely, a web-based word processor, Google is moving directly into Microsoft’s core business (btw, I have some Writely invites left, please leave a comment if you’d like one 
). Latest addition on the battlefield being SketchUp, a powerful free tool for 3D imaging.
Microsoft in the mean time if grabbing in its deep pockets to keep up, announcing last Thursday that its spending will be rising sharply next year, about $2 billion higher than previous estimates.
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