How quickly we forget. Robert X. Cringely states:
Having been shown the way by Apple, I expect Google to shortly do the same thing, adding automated backup, synchronization and migration to Android and Chrome.
Uh, didn't Google show off new hardware support for doing just that like a month ago? Chrome OS is completely networked. There's no local installation of anything. The next logical step for Google is to enable that capability on a phone. You login to the phone's hardware with your Gmail address and boom, the phone has your phone number, your apps, your music, all ready to go. Log out of that phone and into another one and all of the connections, apps, and data are there again. **Note** This capability doesn't exist, but it is what I believe to be the next logical step forward for Google.
Google and Apple are having some fun. Each are taking turns innovating solutions and improving existing interfaces. Apple's new notifications are an improvement on Google's notifications. Eventually, the two will drive each other to implementations that please their users. For example, I would love to see the notifications get screen realestate on the Android lock screen.
Google has the pieces to compete. It is just a matter of putting them all together in a cohesive way that improves the lives of their users. They have to figure out how to make it seemless. Apple has figured that out and shown their path forward. If Google hasn't already defined a path forward, they will be working on that now.
Apple's way forward is the most integrated and simple solution to a problem many people have. Everything they are doing with software and services sells more hardware. Giving the non-techies avenues to keep their data backed up and access it from anywhere will sell more hardware. The cost of the software is embedded in the hardware. Apple took the cellular industry's strategy, tweaked it, twisted it, and now are profitting like no one else.