Cloud Computing: Zoho CEO Says The End is Near for Microsoft’s Office Monopoly
October 30, 2013
Grazed from TalkinCloud. Author: CJ Arlotta.
Zoho CEO Sridhar Vembu accused Microsoft (MSFT) this week in a blog post of having an "oxygen supply problem," claiming that "Microsoft Office has long been the de-facto monopoly." "That is the nice thing about facing a monopoly in an adjacent market – every player other than the monopoly would win if they get a non-zero share of a massively shrunk market," he said.
"If the $20 billion market shrinks to $2 billion, we at Zoho would celebrate it, as long as we can hope to get a share of that shrunken market." Vembu clarified his comments with us in an interview by pointing to how companies can still innovate the office suite market through research and development (R&D) with smaller revenue…
"After all, Microsoft has 90 percent operating margin on the Office suite, which by definition means that a competitor making just 10 percent of the revenue can actually invest as much as they [Microsoft] do in R&D and innovate."…
Read more from the source @ http://talkincloud.com/cloud-computing/zoho-ceo-end-near-microsofts-office-monopoly