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GOOGLE (Symbol: GOOG) and Microsoft (Symbol:MSFT) have been battling for Internet supremacy for the past 4 to 5 years. Google leads, or rather has the higher percentage in the Internet search market. Microsoft owns a monopoly in the computer operating systems with its Windows products and controls the lead in the Internet browser market with the Internet Explorer. Google, although 10 years young and counting may grab a large share of Microsoft’s browser %.

The Internet browser battle began only a few days ago. Google released a beta version of its new Internet browser, GOOGLE CHROME. Is this GOOGLES’ attempt to control the Internet?

Microsoft spends about $5 billion/year in Research and Development (R&D) but they have not produced anything sexy or iPhonish in years. The closest they have come is with the XBox. However, the components they use to design the machine are so expensive that Microsoft has not yet made a profit on this gadget.

The really interesting thing about this new 2.0 war for Internet supremacy that it has occurred before. Microsoft vs. Netscape, EXCITE, GO.com, etc… These companies are now history. GOOGLE, if successful will not completely eliminate Microsoft (Microsoft has too much cash on its books), but they could make them irrelevant.

On the other hand, GOOGLE is growing at an alarming pace. History tells us that the larger a company grows and expands the more bureaucratic it becomes, like government. It then ceases to innovate (Ex. AT&T, GE, Cisco Systems). Then it uses acquisitions to compensate for its stagnation of innovation. CASH then becomes the new king of Innovation.