In their annual report about the state of their company, Microsoft has defined their opinion of their competitors by defining the competitors business. Though the companies are not mentioned by name, it is fairly obvious that Microsoft is addressing Apple when they state:

A competing vertically-integrated model, in which a single firm controls both the software and hardware elements of a product, has been successful with certain consumer products such as personal computers, mobile phones and digital music players.

For Google we have:

An example of an advertising-funded business model is Internet search, where providing a robust alternative is particularly important and challenging due to the scale effects enjoyed by a single market dominant competitor.

The report also points out that Microsoft employ’s about 17,000 people has over 13 million square feet of office space in the Seattle region and took over 21 companies thus far for 2008. Now aren’t you glad you now know all of these facts? 🙂

It appears that the bottom line is that Microsoft sees Apple and Google as their main threats. What do you think?

Comments welcome.