On Monday, Google Inc (NASDAQ:GOOG) jumped over Microsoft Corporation (NASDAQ:MSFT) and become the world’s second-largest technology company.

Its ascension comes as Internet computing has cut the demand for software installed on desktop computers.

Microsoft and googleGoogle’s Inc (NASDAQ:GOOG) stock increased 0.7 percent to $759.98 at 11:13 a.m. in New York and reached an approximately $249.2 billion market capitalization.  Meanwhile, Microsoft, the world’s largest software maker, saw its stock drop 0.3 percent to $29.67 with a $248.7 billion valuation.

Google Inc (NASDAQ:GOOG) started as a search-engine, and now it is the world’s most widely-used mobile operating system and tool for seeking Web information. Its rise is also evidence of the Internet, which is utilized as a delivery channel for more software and computing tasks that had once been the domain of the Microsoft-lead PC industry.

Martin Pyykkonen, a Wedge Partners Corp analyst said via Bloomberg, “The PC hardware business is obviously struggling. The transition here is pretty straightforward in terms of where things have moved to, and certainly that’s cloud, that’s Web.”

So who’s Google’s competition? Yes, Apple  Inc. (NASDAQ:AAPL) sits as the world’s most valuable company, at $632.9 billion. As it once sat behind Microsoft, Apple passed the company in 2010, thanks to its increasing sales of iPhones and iPads.

Google as a Leader 

Today, Google has a 66 percent control of the U.S. search market, reported Bloomberg, with Microsoft coming in a far second place with 16 percent. Google is on pace to overtake Facebook Inc. (NASDAQ:FB) in the U.S. as the largest outlet for display advertising, including banner ads, said EMarketer Inc.; it will also stay at the top for mobile ads.

Other positives for Google include its Android software.

During the second quarter, it powered 64 percent of smartphones; this is up from last year’s 43 percent during the same time period, reported researcher, Gartner, Inc. (NYSE:IT)

Apple’s software came in at a second place, at 19 percent and Microsoft limped in at No. 3 with 2.7 percent.

As for Microsoft Corporation (NASDAQ:MSFT), it has an online business with the Bing search engine, but most of its revenue comes from Windows and Office software, that is primarily utilized on PCs.

But Windows sales have dropped, as consumers are using tablets, rather than laptops with Microsoft’s software. On Oct. 26, the next version of Windows will come out. It has a new design for the touch- screen technology found in tablets and it will also run handheld devices, such as Surface; this is Microsoft’s first entry into hardware, reported Bloomberg.

Google Inc (NASDAQ:GOOG) has already introduced a tablet, the Nexus 7.

In July 2000, Microsoft Corporation (NASDAQ:MSFT) had a market capitalization of more than $430 billion, according to Bloomberg but by March 2009, it had dropped to about $135 billion.

On Monday, Google’s stock closed up .96% to $761.78