Gartner analyst David Smith said press coverage often gives the impression that Google is able to leverage the work of a four-person startup to give away productivity apps equivalent to what Microsoft (Quote) has spent hundreds of millions of dollars on developing -- and, of course, does not give away.

"Browser-based applications are useful, but they don't offer everything a rich-client application does," said Smith. He also said that the popular perception that Google (Quote) is "going after" Microsoft's Office applications market is off the mark.

Google is also often perceived as a "bully," Gartner said, in its relationship with content providers, an area where Microsoft does a much better job.