Looks like Microsoft Corp. (NASDAQ: MSFT) will be working with longtime nemesis Research in Motion Ltd. (NASDAQ: RIMM) to bring its Windows Live services to the BlackBerry mobile platform. Windows Mobile, the smartphone operating system made by Microsoft that is a direct competitor to RIM's BlackBerry smartphone operating system, is already integrated with Microsoft's Live services, naturally.

While RIM figured out long ago that instant access to secure email in a small, portable device was the key to its fortune, Microsoft took years to discover that same fact, and now provides a similar solution on its Windows Mobile platform. But providing access to Windows Live to the biggest competitor it has in the smartphone arena can mean only one thing: Microsoft is trying to fend off Apple Inc.'s (NASDAQ: AAPL) iPhone.

At the same time, Microsoft wants to get as many customers using its Windows Live services on those mobile phones as possible. The iPhone reportedly will shortly work with Microsoft's Exchange corporate email servers to allow the same "push email" functionality that put the BlackBerry on the map. That is, instant, real-time email wherever you are. Those with Microsoft's Hotmail email service will also enjoy real-time "push" email with this new partnership. But make no mistake -- RIM and Microsoft will need to do more to fend up the upstart competitor, Apple. If a new iPhone is announced this summer as expected, both RIM and Microsoft will see even more turbulence in the mobile markets.

Microsoft Corp. (NASDAQ: MSFT) CEO Steve Ballmer told an audience yesterday that the world's largest software company won't stop supplying its online services with cash in light of continued losses from that business unit -- for fear of ceding the race to rivals. In other words, Microsoft won't close its billion-dollar checkbook and give the world of online advertising and services to Google, Inc. (NASDAQ: GOOG).

Is Microsoft this afraid of Google, or does it see a fundamental shift of services moving from the desktop software program Microsoft owns (like Microsoft Word) to web-based replacement services? Or, does Microsoft just want a larger piece of the advertising revenue from web search -- an area that Google dominates completely and where it has made all its money? It's a little bit of both.

Don't put anything past Microsoft, I say. The company in some ways looks like a laggard, but it has the cash (net of a tiny amount of debt) to do anything it wants. Google's cash pile is growing tall as well, so although the Microsoft-Google debate will rage on, both companies will continue sparring inside the field of internet advertising. Both have the fortitude and cash to square off for a long, long time. Ballmer is no wimp by any means, and in 10 years we could have an internet ruled by both companies if this punch-counterpunch competitive strategy continues as it has. Someone call Evander Holyfield and Mike Tyson, please.

Windows Live services and applications were honorably discharged from "beta" status this week as Microsoft Corp. (NASDAQ: MSFT) gave the entire world full access to www.live.com, along with releasing email addresses at the live.com domain name. Get yours today!

In addition to officially launching Windows Live, the world's largest software maker is preparing an online advertising blitz that will reach "billions" over the next few months, according to the company. In terms of actual impressions to customers, the company expects about 10 billion of them through the end of the year (roughly). That's quite a push, yes?

Windows Live is Microsoft's attempt to offer a complete suite of online tools from email to maps to social networking to instant messaging -- and all available from a single "dashboard" where all products are cross-promoted and fully integrated. Google (NASDAQ: GOOG) has been doing this too in the last year, part of its iGoogle initiative.

This is being seen as Microsoft's largest effort yet to recruit and keep eyeballs to its cross-linked array of consumer web offerings so it can glean more advertising revenues from those eyeballs a la Google AdWords. The software maker is well behind its rival, in seeing revenue from advertising, but it is making progress here. Time will tell if it is enough progress.

DISCLOSURE: I own MSFT shares as of 11-8-07.

The sharing of videos on YouTube and images on Flickr is an indication -- says the Economist -- of bad news for Microsoft Corp.'s(NASDAQ:MSFT) upcoming Windows Vista release. The widespread use of e-mail, spreadsheets and Internet-based software is a sign that "more PCs now talk to one another using open standards rather than proprietary ones," making operating systems less relevant.

Microsoft is hoping to offset this trend by working with open-software firms like Novell (NASDAQ:NOVL), and with initiatives like Office Live, which helps small businesses create websites; and Windows Live, a search engine/e-mail service extraordinaire.

Vista, the latest version of Microsoft's operating system, will be released on January 30th. And while customers will be able to purchase and download the software online, it is expected that most will buy the shrink-wrapped boxes in a store, like the old days. We will see, however, if the lines stretch as long as the last Windows release.

B. Brandon Barker is the author of Operation EMU

We continue to hear about how Google could face stiff competition in the Internet search arena from the likes of a re-energized Yahoo! and Microsoft. Both competitors have been reinventing their search businesses in an attempt to get in on the lucrative paid-search advertising business that Google now essentially owns.

But Google has an advantage: The core competency of the company is search. That is Google's brand identity and therefore, the one core service that customers turn to it for.

I mention this because try as it might, Yahoo! won't be able to compete to the point of causing Google lost sleep in the Internet search business -- and strangely it has even admitted this. It plans instead to focus on building content relationships with its customers and offering distinguishing services that are compelling.

Microsoft, arguably the toughest competitor in the computing age, also will not be able to take much share away from Google regarding search. It may be able to beef up search relevance under the new Windows Live moniker. But branding is all important in the consumer mind (just ask Nike or Apple about this). And, try as it might,  Microsoft's brand will never stand for search.

With newspaper circulation declining 2.6% and more news, audio and video content shifting from old mediums to the web, it's no surprise that those companies which are at the forefront of capitalizing on this trend stand to do quite well. Google is a chief front-runner in this global arcade, and it closed up $0.48 today to $394.78.

We've already written a lot about the competitive battle developing between Google and Microsoft, as people worldwide continue to shift behavior patterns and spend more time on the web -- wherever they may be and whatever device they may have. What effect will all these consumer tastes have on the future of the web front-runners?

As broadband Internet, next-generation cellphones and high-speed wireless Internet connections consume pieces of global culture -- all at the same time -- Google stands poised to capitalize. That is not to say others won't, because clearly they will. But the companies that forge that initial hard-to-break brand and product offering will be first in consumer mindshare -- and sometimes that advantage can prove insurmountable by the competition.

Well, this week has seen a downward spiral in Google Inc.'s stock since announcing first-quarter results back on Thursday, April 20th, causing a share rise to over $440. As of yesterday, GOOG closed down over $20 for the week, ending the trading day at $417.94 on 4-28-06. With such stellar results, the stock -- as they sometimes do -- peaked right after the quarterly earnings call and then steadily dropped throughout all last week.  With the leveling-off -- the reason for being quite muddy -- is GOOG still worth its valuation? Your thoughts? Leave us a comment - we'd love to hear from you!

While we pour through our brains trying to see the market's reason for such a peak-and-valley session with Google this past week, here are some Google-bloggin' highlights from last week's activity here at goog.bloggingstocks.com:

Google's WiFi wireless internet plans in San Francisco under some scrutiny (that darn privacy angle again)

Google's pittance against Microsoft (yes, it's a war folks) further dampens Microsoft's quarter

It's Yahoo! and MSN (or Windows Live, perhaps) in one corner, Google in another

Microsoft's stock price hasn't moved much since 2002 and Bill Gates signaled he's ready for a leadership makeover. The winner for that challenge is Ray Ozzie, who joined Microsoft just a year ago after his company, Groove Networks, was bought by Microsoft.  In just one year's time he's proved his value to Microsoft and is slated to lead Microsoft's strategic thinking efforts for new software development.

Ozzie will webify everything -- finding ways to weave Microsoft's entire product line into the power of the Internet.  "Everything we do should have a presence on the Web," Ozzie told Fortune magazine.

Microsoft started its march to the Web last November when it launched Windows Live, which includes a search service, news and e-mail to compete directly with Google and Yahoo.