How are any of those companies going to compete when Google offers a free product that does everything they do for free?
Interesting train of thought, however, the same arguments were being thrown about when open-source software grew in popularity. It was going to be the end of paid software. The fact is it costs dollars to create, maintain and support software AND one company cannot be all for everything. Generally speaking, I don't think the quality of Google software is great and I think there will always be room for quality paid software. Not sure that's where Google want to be anyway.
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