Vista Makes Run at Google

Much was made in the quality-of-search debate about the announcement earlier this week by the high-profile search start-up Powerset that it had licensed "natural language" search technology from Xerox(XRX Quote). But while Powerset, which hopes to let users search through queries that use normal words instead of particular key terms, hopes to outdo Google through better searches, it's really Microsoft that Google should worry about.

Several commentators have suggested that because so many Web surfers are accustomed to launching their searches through Google, this is almost as much of an asset to the company as its search technology. But even more users may be familiar with the Microsoft desktop environment than with the Google search box.

Google, for its part, seems to be anticipating the threat. The company has been beefing up its suite of online tools, which are similar to Microsoft's Word, Excel and PowerPoint, but which the search giant is giving away for free. Finding a way to decrease the popularity of Microsoft's staple franchise would be one way to blunt a potential attack.

Still, investors expect big things from Google, not the least of which is continued dominance over the one business that makes up nearly all of its revenue. And while Google is eager to tap adjacent, new markets, those efforts remain decidedly mixed. The company keeps increasing the amount of money it makes per search; this led to fourth-quarter results that again surpassed Wall Street expectations.

But it's important that Google show investors it has a solid plan in place to make money in some other endeavors. Otherwise, it will begin to look like a one-trick pony that's trapped in a cage with the 800-pound gorilla of the tech world.