They expanded their product line through acquisition to include an operating system for personal computers, and sold it to IBM-which dominated the microcomputer market when it entered in the early 1980s. However, Microsoft did not sell DOS only to IBM; they also sold it to competitors and clone makers through licensing agreements. This was a new business model which would eventually force IBM out of the market that it helped create, and which would set the tone for Microsoft pursuing market domination of its own through the next several decades (Carr, 2005).
Today, Microsoft has five distinct business units: Windows and Windows Live, Server and Tools, Online Services, Microsoft Business, Entertainment and Devices. All divisions except Entertainment and Devices are software divisions; E&D includes hardware for the Xbox, Zune and automotive products ("Microsoft's Business," 2009). Thus Microsoft has business units rather than functional units with possible duplication of effort occurring across business lines. However, this specialization can give the company more focus in each of the business areas (Nagappan, Murphy & Basili, 2008).
Founded in 1998, Google is the newer of the two companies, but has had no less astounding a history. Originally begun as a search engine by two Stanford University graduate students, the company has grown to encomp