Google is growing. Recent post in NYTIMES talk about how Google's share in search market grew.
The research firm Hitwise, which measures Web audiences, said that Google accounted for 58.3 percent of all searches in the United States in March of 2006. By November of 2006, Google’s share had grown to 61.8 percent, and by this November, to 65.1 percent. That’s more than triple the share of its nearest rival, Yahoo, and more than nine times that of third place finisher Microsoft.
Microsoft has been trying out and out to kill Google's growth. To an extent where they are paying corporates for using Live Search and trying to raise concerns over Google's acquisition of DoubleClick.
NewYork times article has also mentioned that:
“As long as Google’s competitors are aiming to be like Google or almost as good as Google, Google will continue gaining share,” said Jordan Rohan, an analyst at RBC Capital Markets. “It has more resources and engineers focused on search. It is an arms race that they’ve won by a landslide.”
Competetion is going to grow, but with speculation about Google's intention to launch Androind powered phones in February can leave competetors way behind.
Year 2007 was about iPhone. Year 2008 will be about Android.
Updated: Here is an article at slashdot.org which portrays Google and OSS as big threats to Microsoft's survival. Linux is increasingly being used and market share is growing. Unless, Microsoft revisits it's pricing and "openness".