Microsoft's New Building Blocks

Microsoft has developed a reputation as being weak on virus protection. Explorer has lost market-share to Firefox, an open-source browser that's harder for viruses to penetrate. Microsoft bought Sybari Software in February to attempt to plug this leak in the hull.

Sybari makes software products that protect servers from viruses, worms and spam. It's enterprise-focused, and Sybari has discontinued its sales to Linux-based systems.

To beef up security, Microsoft also acquired FrontBridge in July and Giant Company Software last December. FrontBridge offers software that scans for viruses and spam. It also has products for encryption, disaster recovery and archiving for email and IM.

Giant is a provider of top-rated anti-spyware and Internet security products. On Jan. 6 Microsoft announced the availability of the first beta version of MS Windows AntiSpyware based on Giant technology.

Google's roots are as a business-to-mass-consumer play. While it's attempting to sell search services to the enterprise sector, that's not Google's forte. Nor is selling products and services to individual customers.

Microsoft, with its recent spate of acquisitions and deals, still has the opportunity to hold on to its status as the most successful company ever. But Google is nipping at its heels (and the consumer is bound to benefit whatever the outcome).

That said, the fact that Microsoft seems to "get it" in terms of where it needs to build out, plus the fact that the basic valuation metrics are so cheap, make Microsoft a compelling buy.