RSSIn Browser War, It's Really Google vs. IE
By Nate Mook | Published October 24, 2007, 2:55 PM
While Mozilla may get all the credit for finally dethroning Internet Explorer as the only dominant Web browser with its development of Firefox, the man behind the curtain continues to be Google, which provides the vast majority of the cash that keeps Mozilla going.
According to financial statements posted this week by Mozilla CEO Mitchell Baker, the company brought in $66.8 million in revenues during 2006 - a 26 percent improvement from 2005's revenues of $52.9 million. A full 85 percent of Mozilla's revenue for 2006 came directly from Google through its search box partnership.
Mozilla even cautions about this reliance on the search giant in a footnote; Google's deal with Mozilla expires in November 2008. But it's unlikely that much will change come next year, as Google benefits quite a bit for being Firefox's default search provider, in addition to seeing Microsoft's IE market share continue to drop.
Out of the nearly $67 million in revenue, Mozilla only had about $20 million in expenses, most of which went to paying the company's 90 full-time and part-time employees. Aside from Google, Mozilla says revenues came in through the company's store, along with public donations and interest on its investments.
Because it is spending far less than it is making, Baker says Mozilla has gone "beyond sustainability" and is now able to expand its hiring, and give grants that fund programs. $300,000 went to these efforts in 2006.
"This is a small first step as we learn to spend money without causing unintended consequences in our community. We expect the amounts to expand significantly in 2007 and beyond," Baker explained. "For example, so far in 2007 we provided a grant to the Open Source Lab at Oregon State University for its ongoing operations in support of open source projects and the Participatory Culture Foundation for improving open source-cross platform video on the Internet through its Miro Player project."
With a new datacenter open in Europe to serve 600,000 downloads per day and 120 million people using Firefox actively, Mozilla is establishing itself as a powerhouse on the Internet. "We've always had high mindshare but combining mindshare with a significant number of users makes an enormous difference. As a result, good things happen," Baker says.
But a big question remains: How long can Mozilla stay independent? With Google ostensibly bankrolling the company and Firefox becoming a driving force on the Web -- in both browsers and Web standards -- the search giant could see a prime opportunity to expand its own reach and better compete with Microsoft and Yahoo. With the search deal expiring next year, Google may also find itself in a bidding war to retain its stake in Mozilla.
I used both latest IE7 & Firefox but personally though Firefox is the best. Using another browser that used IE platform likes Avant Browser makes me feel better than IE.
Good posting to "promote" seamonkey & latest Netscape, maybe worth to try both.
Score: 0
To sounds like fishes against seawater :))) Mozilla working IN WINDOWS and ver depend on microsoft HTTP and COM technology. In just one click Microsoft can destroy Mozilla browser on Windows platform.
The same story about Google. Just include anti-Google filter into network libraries and bye bye Google. :)))
Everyone just forget that we are just small fishes in ocean called Microsoft Windows!
Score: 0
Wow.
This guy skipped the whole tinfoil hat routine and went straight to having it implanted permanently in his skull.
Unfortunately, it seems to have caused some damage...
Score: 0
For once, I agree with you, PC_Tool. That would be a move, for microsoft, tantamount to painting itself with a red targeting scheme and mooning the E.U. while simultaneously pissing in the U.S.'s antitrust laws *and* initiating a program wherein users must obtain permission from Clippy to run any program.
Score: 0
Luckily Firefox has a plugin that allows you to block all of Google's ads and such. :-)
Score: 0
Lovely, how Sociallistically Ungrateful! Isn't that special????
Score: 0
No, he's entitled to the content without the ads.
...because he's "special".
Score: 0
i like OPERA .
Score: 0
Which is an amalgamation of Google and Yahoo.
Score: 0
Whatever happened to Netscape?
Score: 0
Aol swallowed them and basically let them die. Netscape is now basically nothing more then a webpage that copies other people, digg.com and yahoo for example. There has been some new releases of the web browser called Netscape, naturally its nothing more then a themed firefox that is very busy and annoying.
gotta love firefox, I hope they continue to gain share and help bring standards to the web so you can actually use them AND make Microsoft put out IE 8.
You know its impressive when a free browser that basically has nothing more then word of mouth advertising can pick up 15 percent of internet users (firefox runs on linux, mac and windows so you can't say windows users) I am sure that really irritates microsoft, probably almost as much as Google does.
I mean how embarrassing must it be when a free open source browser can mopp the floor with a multi billionaire titan like it does with ie.
The answer is when you win a war, sit on your butt for years and basically give your user base the middle finger.
Score: 0
Yes, I agree with you on Firefox. Compared to IE which gradually became totally annoying over time, it's a no-brainer.
As for Netscape, they probably deserved it.
Score: 0
Netscape Navigator 9.0 is actually a very good browser unlike the past few releases, and it is not just a themed Firefox. It's based on the Gecko engine and does support most Firefox extensions but it is a complete browser suite.
However I personally would use Seamonkey, if I had not already switched to Opera.
Score: 0
Netscape has been recently improved & considerably-- it's now ideal for a prodution system: has NONE of the constant FF senseless makeovers/bugs/addon incompatibilities.
Moz Foundation has lost its way after initial acclaim.. I hold out more hope for Safari for instance.
Score: 0
First of all, full disclosure here: I'm a happy Firefox user, but I use IE as needed for sites that just don't play nicely with FF. I also believe that competition is a great thing and that FF is doing a great job at competing with Microsoft.
What I'm reading in this editorial is that since Google has a heavy investment in Mozilla, it's really Google that deserves the credit for competing with Microsoft... that Mozilla couldn't do it without Google's support. I'm not going to disagree that financial support made a huge difference, because it allowed Mozilla to really market their product-- something that competitors past failed miserably to do.
However, I don't think it's the only factor to their success. Marketing a crappy product doesn't make it successful (just look at Windows Vista). Marketing a well-developed product makes you successful, so Mozilla was able to take their great product and using Google's funding for marketing.
Moreover, I think that the claim is a bit like saying Apple only succeeded because of the massive (at the time) investment that Microsoft made in Apple in the mid-90's. Certainly, I think it helped keep them afloat, and I wonder if Gates and Jobs are kicking themselves now, but as much as I *HATE* Apple, they are just as good at marketing their products as Microsoft, even if their marketing is less-than-honest (sorry, but they are NOT the first/only to offer touch phones, landscape screen viewing, or mobile email/blogging tools, despite their commercials' claims)(by comparison, Microsoft advertising says, "Our product can do this and that" without the claim of being the only/first to do it... EDIT: there's always plenty of criticism that their products don't do enough, of course, lol).
Anyway, interesting perspective, Nate... I think you're on to something in your last paragraph-- how long before we see Firefox get sucked up by Google, or-- how long before we see your suggested bidding war for search? Well, I don't think Mozilla would go for a deal with Windows Live Search, since the whole point is to get away from Microsoft. That leaves a renewal with Google (most likely) or a deal with Yahoo (not likely) or Ask.com (possible).
Score: 0
Would it lead to a renewal with Google? I suppose as long as they are making more money by having clients search on Google than they are paying Mozilla for the pushes, then yes, I could see them renewing the deal (Google that is).
I do disagree with saying that Mozilla couldn't have done it without Google's support or at least the revenue that was brought in by pushing users to Google. The article mentions that the money allowed them to pay their staff ~30% of their revenue went to that. Which means that $57m out of their $67m was all from Google.
If they hadn't had that revenue stream, would the product be as good if they only had 10 people on staff? What if they had to go back to having people on the side working on it? Would it be as good going forward when these people had full time jobs to deal with?
Hopefully we'll not have to find out. But even if their share continues - I don't see them completely or even majorally (is that a word) replacing IE. Think about how many users you have out there (not to mention IT shops) that are not going to replace the default stuff that comes on a desktop. I think they might someday get around 25%-30% of the market, but I don't know if it will ever really get higher than that.
Score: 0
Here's a question - would Betanews be willing to post their browser/os/resolution/ip location/etc? I'd be curious as to who, what and where people are coming from and using.
Score: 0
When you refer to the revenue stream to pay employees, you have a point, although I guess what I was suggesting is that had it not been Google it would be someone else. :)
That said, I agree... Firefox will probably never see the 85% and higher that IE has enjoyed. I predict that within 2-3 years it will balance out to a point where FF and IE each have about 45% and the other 10% will be divided amongst Opera, Safari, etc.
Score: 0
i read "i hate apple" and instantly knew this comment wasnt even worth skimming.
Score: 0
Ah, but obviously worth commenting on. Thanks for wasting your time! :)
Score: 0
I'm using IE right now, why would betanews post the ip's of their users?
Score: 0
You're wrong. It's an opinion, so it IS worth skimming...
BTW, I hate apple too, so what?
Score: 0
Have you taken a look at the "IE Tab" extension? You don't have to leave Firefox to browse those poorly written IE only sites.
Score: 0
IP Location, IE where the readers are located. It would be interesting to see if more people in silicon valley are using FF than those in the mid-west or rednecks in the south. I don't think billweh wants personally identifiable information, just a cross-sketch of who is using what.
I usually use IE7, but have FF2 something installed for when I have trouble with IE.
Score: 0
Actually its your comment that is worth skipping over.
Score: 0
You know what?
So do I. Bid deal.
Score: 0
Aint just rednecks in the south no more.
Score: 0
As a matter of fact, I just installed it last night after using IE View for the longest time. Thanks. :)
Score: 0
Nope - we're everywhere BWAH HAH AH AH AHAHAHAHA! All Ya'll
Score: 0
Search youtube for the Top Gear ep where they drove through alabama.
Funny as hell.
Score: 0
HEADLINES TODAY....
Nov 3, 2008 Mozilla & M$ announce that Mozilla has agreed to be bought out in the amount of $$Billions. So much for competition...
Score: 0
Funny, but I really don't see them going this route. Google & Mozilla announce that... well, that I can believe.
Score: 0
you replaced the S in MS with a $...that's funny, very original.
Score: 0
thats funny, seeing as Google practically owns mozille by providing over 50% of its revenues.
oh wait .. let me be clever google$
Score: 0
Google$
Score: 0
Go gFox. Competition is GOOD!
Score: 0
I hope they don't change the product name if/when it happens. The Mozilla core has been through enough name changes over the years. Firefox is a well-known, reputable name now... why ruin a good thing? :)
Score: 0
Firegoogle? Gfox? Fooglox? :))))
Score: 0
The GooFox
Score: 0
Gee...how about the obvious:
Google Browser
Score: 0
I always thought Firefox was a stupid name myself. Phoenix was the best, meaning that the browser had risen from the ashes of the original Netscape Corporation. Then some stupid company started whining "that's our name!" and made them change it, so they chose the closest thing to a Phoenix they could think of which was Firebird. I didn't like it though, the first thing I think of is the car. Then some other company comes along and says "That's our name!" so once again they change it. This time to Firefox, wtf? What does a flaming fox have to do with Phoenixes or web browsers?
You're right though, it is well known now and I doubt they'll change it again, even though I think the name has held them back. A web browser name should tell a person what the program does, or at least give them a vague idea. Netscape Navigator, Internet Explorer, Opera...well ok Opera doesn't make any sense either.
Score: 0
I'm still waiting for Goonix, their Linux-based OS.
Score: 0
GooOs?
Score: 0
Figglegox
Score: 0
Durka Durka.
Score: 0