Eric Schmidt, however, doesn't include Microsoft into "gang of four" companies that rule technology.
Google executive chairman Eric Schmidt believes Microsoft's forthcoming Surface tablet could make its mark on the market, but only if the product works.
Schmidt was speaking with All Things D's Walt Mossberg and Kara Swisher when he said he isn't ready to include Microsoft into the "gang of four" firms (Google, Apple, Amazon and Facebook) that spearhead the technology market.
"Let's see what this new set of products does," he said. "There are well-funded, smart, well-run companies that have not been able to bring up state-of-the-art products."
Schmidt added that the software giant has built a "structural monopoly" centered towards Windows for PCs. However, he believes that's not the right model to go forward with in the mobile market. The executive foresees firms who implement hardware and software the best will be the most successful in the competitive market.
"There's going to be an explosion of integrated hardware/software solutions that manage your car, life, music, refrigerator," Schmidt stated.
Microsoft's Surface, a tablet that will feature Windows 8 and may be priced between $400-$899, will launch alongside the operating system at a midnight launch on October 26.
Google, meanwhile, is reportedly working on a 10-inch Nexus tablet in collaboration with Samsung.