Thursday, December 30, 2010

On google like Shaq

Google is best a search, but Bing is not far behind. I am would be willing to bet that if user interfaces were exchanged with results less than 5% of users would notice. So Google is profiting on a combination of preset search settings and familiarity. Their other area of homegrown excellence is Adwords. The auction mechanism of placing ads according to expected revenue as opposed to highest bid, like yahoo, was a relatively obvious but huge innovation and diferentiator so far as revenue per page view is concerned.

Kudos Google.

But at what else are they the best rather than the simply the cheapest?

I love gmail. But the developer is no longer at Google. was bought as the front runner and they did not Yahoo! it. (mmm tasty)

Docs is good for simple stuff sharing, but for a complicated sheet or pretty document it can't hold a prayer against Office.

A bunch of hobbies are cool. I like, but doubt it is positive net present value.



Voice=I like but niche and no revenue model yet.

Bottom line, as Shaq is a very good dunker who grabbed rebounds and dunked those too, Google Combines search and Adwords. Shaq has rapped, acted, and participated in reality shows, etc. Did he make much money or was it simply fun? I'm guessing fun, and that's good for Shaq. But for a company who's fiduciary duty it is to maximize shareholders' value their hobbies are occasionally hard to defend. In their defense Android is a sucess so far as market share and likely search revenue are concerned, but again, how does Google make money. Adwords. Oh and Doubleclick makes money. So what. Another acquisition. Ironically googles search is no longer their most secure business. Adwords is their claim to fame, but Facebook and others are threats. Other than their ad networks and search loyalty on what else will Google make money?

Microsoft has Windows, Office, Server, SQL, CRM, Sharpoint, Exchange, Officelive,, ect. Phone 7 is also a winner according to all reviews. MS has the framework and need only iterate and exploit existing enterprise relationships.

2010-2020 is MS over Google. Apple will hold their niche but Jobs has no intention of being an open enough platform to be the market leader. History repeats...

No comments:

Post a Comment