It's always a good idea to take any competitor seriously. After all, just a few years ago, Google Inc. (NASDAQ: GOOG) was a fairly small company.

However, as for Microsoft Corp.'s (NASDAQ: MSFT) CEO, Steve Ballmer, I'm not sure he thinks Google is a threat. He recently gave a presentation at the Stanford Graduate School of Business.

Ballmer was really just stating the obvious. He noted that Google is growing extremely fast. To him, it's too fast., although I'm sure Ballmer would like to grow Microsoft's search business like Google has.

Next, Ballmer said that Google is a "one-trick pony." Again, I'm sure he has wanted to ride this pony but just couldn't get on. It's also true that all great tech companies eventually have problems. Google will be no different.

As for Microsoft, however, I think it needs to realize that it got beat, at least in internet search. So, instead of talking smash-mouth about Google, maybe try to find a way to win?

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.