Google Services vs Microsoft Software

Google released their Q3 earnings report, which seems to be very good.
Here’s briefly some of the figures from the report
EPS $5.89 (better than analysts predictions)
Net revenue of $4.4 billion
Revenue up 7% sequentially
Google Sites revenue up 8%
Paid clicks up 14% sequential
Price per click drop a modest 6%
Free cash flow was $2.5 billion
If you are interested in more details , you can check the complete report here
However, what is really interesting to show is actually the graph from SiliconAllayer Insider showing Google’s free cash flow trend.

If this trend continue they will reach Microsoft in about a year.
Microsoft has been dominating the software market for personal computers with their windows and office packages. Their dominance is not going to last long and I have several reasons to prove it.
Besides the fact that after all these years in the business, Microsoft is still delivering fragile products that crash several times a day.
Apple’s market share going up.
Google’s strategy of pushing desktop applications into the browser.
While Microsoft is struggling to release the next version of their software (watch out for Windows 7), Google is proving that you can make a good profit on services (playing the middleman between consumers and advertisers).