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Is Microsoft threatened by Box.net? Should Google buy it?

Google Inc. (NASDAQ: GOOG) and Microsoft Corp. (NASDAQ: MSFT) have been working on online storage services for what seems like forever. Microsoft's Live SkyDrive is still in beta (pre-release) but is functional. But there are quite a few gyrations just to log in to the service and access it (like many Microsoft services). Google's famed vaporware "GDrive" product has not made it to the public yet, leading many to believe if a product even exists.

Google's Gmail and Picasa products provide a good amount of storage, but the primary function of both services is not standalone online storage. Box.net, a small startup that is dedicated to online storage (and lots of it) is set to outpace innovation by these much larger rivals.

Additionally, it has some killer features, such as OpenBox Services -- this allows online applications to be accessible anywhere a web browser exists, much like Google Docs & Spreadsheets. However, there are applications from many vendors available, not just simplified online tools like Google currently provides.

Is that a huge value add? You bet. After having checked it out, I'm amazed that Google or Microsoft have not gotten there first. Startups are where magic happens in many cases, and this begs a question about Box.net: when will Google acquire it? I doubt Microsoft wants to acquire a software-as-a-service company that runs applications from multiple vendors over a web browser, but I could be wrong. Google has built an amazing business around software-as-a-service (at least from my perspective), and a move into further competition with Microsoft's Office software franchise would seem appropriate.

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Last updated: December 05, 2008: 07:10 AM

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