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Google's Revenues Outpace Sales Of Windows

For the first time, Google's revenue edged out Microsoft's sales of Windows for PCs in quarterly results last week, underscoring the rise of the Internet as a focal point of the modern computing world.

Overall, Microsoft as a company still posts considerably higher revenue than Google, and it still makes a much bigger profit from its PC operating system than Google makes from its business. But the results show the growing financial clout of Google, founded less than a decade ago. And it explains why Microsoft--at more than 30 years of age--is trying to make itself a viable competitor in the online market that Google has largely defined.

A simple comparison provides a sense of where things are headed: Microsoft is projecting revenue growth of 9% to 10% in the PC Windows division this fiscal year. Google's revenue growth during the first six months of this year was 60%.

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