Microsoft has always dominated the PC market. I will go so far as to say without Microsoft the PC would not have evolved to today’s standards. But why does it fall behind Google and Yahoo in web-market dominance. A quick look at a Compete.com graph shows Big G and Y! are playing in their own private league while Microsoft watches from down below.

Microsoft has seen many ups and downs and has survived every hurdle thrown at it. It has managed to fight long legal battles against US anti-trust agencies and their European counterparts. But the software powerhouse seems to be losing its edge when it comes to the internet. Monstrous corporations have limited success on the web which is mainly dominated by small startups which are eventually bought out by other companies. But there are no small ideas at Microsoft. If they decide to power in to the online business realm, Yahoo may be their best hope. This may be one of the reasons why it makes sense for Microsoft to acquire Yahoo! Too bad Yahoo! has turned down the initial offer. Yahoo! may be playing hard to get but will Microsoft take the bait and increase their offer? Too soon to tell. Steve Ballmer and his posse have a tough choice on their hands.