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Faster, smarter, and more able to leap profit margins in a single bound; look up in the cloud, its Google! This would be the image that Larry Page, one of the co-founders of Google Inc. and its recently named second time CEO. The shakeup has significant implications for the future, and two things stand out as being glimpses of the future. First, Larry Page, in one of his first official acts as the new head of Google, promoted seven executives to run the seven most important divisions in the company. This is a Google first, since it is the first time that Google will run as a normal corporation does.
No More Playtime
As big and as successful as Google is, it has not done well with many of the ventures it has developed. The Google Wave project, touted as the future of messaging, was not. Nearly all of Google’s social networking efforts have met with failure. Gmail and Google Apps for Domain are the two bright spots, technically one, as they both depend on Gmail. Google Docs is is not a competitive threat to some of the other productivity offerings on the Internet.
It would seem that between the farmer update, that may be responsible for a 16 percent jump in revenue for the first quarter 2011, it the opening shot in the coming Google campaign. As a measure of how serious Google is, future employee bonuses will be tied to the company’s success with its social networking efforts, even if the employee is not directly involved in that development. The message is clear; Google has to start working for a living.
Recently, the US Government approved Google’s purchase of ITA software. ITA makes and maintains most of the software running airline booking systems and discount airfare aggregators. While the deal was approved with restrictions and will entail Government monitoring, it puts the company in a position to capitalize on the lucrative market. Perhaps a custom Google Airfare discounting a booking system is coming.
Google also announced a major upgrade to the YouTube video service that will involve a complete new look and feel, the creation of channels, and original content distribution. Recent shifts in the media market with Netflix going independent and major cable providers scrambling to open their offerings up to mobile subscribers make the YouTube move logical and a little aggressive.
Tough Google
More than anything else, this is a fundamental change in the corporate culture of Google. For years they were seen as the playground of the ubergeek and about as un-businesslike as possible. These new moves seem to introduce a Google committed to compete in the technology sector and not just have fun with the permanent advertising revenue. Google’s lock on search engine revenue may have been the thing that kept them from really developing. There was no need to earn a living, just experiment with the money that was there. The “one day a week spent on a personal project” rule for Google developers may soon end. As powerful as Google is in the present Internet market space, an aggressive “winner-take-all” Google could be a warring idea. The company could dominate in several markets, and it would be hard to stop them in some. A concerted and well-focused social networking effort could begin to grow and threaten real competition for Facebook. A more extensive Google Cloud could alter the budding Cloud industry. Android has shown the way and now Google may be getting serious about exploiting that opening.
About the Author:
Jon T. Norwood is a managing partner at High Speed Internet, a site dedicated to providing information on Internet Providers and Technology. Jon can be reached at jon[at]velocityguide.com.
[Image Credit: Flickr]
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Google is on the top right now and a lot of people really wanted to be part of them. Because of the frequent updates of their algorithm, other search engine is having hard time to cope up and compete with them 😀