Google splashing in Microsoft's pond

As if we didn't already know, Google has its sights set on Microsoft's cash machine -- the applications market:

(Via Red Herring)

Google today officially confirmed what many analysts have been saying for months: the Mountain View, California-based search leader is going after the software market in direct competition with Microsoft.

Reflecting the company’s explosive growth, Google’s new tagline will be “Search, Ads and Apps,” said CEO Eric Schmidt in a speech at its annual shareholders’ meeting.

Last year Google launched a package of online applications such as browser-based word processing and spreadsheet software that look much like Microsoft’s bread and butter Word and Excel programs.

And the Googlers did talk about the free, open-source OS that is nibbling on Microsoft's other moneymaker:

In a question and answer session with shareholders, one woman asked Mr. Schmidt and Google co-founder Larry Page how they would avoid becoming known as “the new Microsoft, and not in flattering terms.”

Mr. Page added, “It’s natural to be concerned about it… We’re not the same kind of company” as others out there, Mr. Page said. “Our engineers all run Linux. It’s free. You can hack on it. It’s deep in our DNA”