We realize this may not be the "politically correct" thing to say but let's not forget what Google really is, a software company. Search is software; period.
In fact, Google is the most software of all major "Internet" companies. Let's compare: (be nice, we are quite cognizant that we are being ridiculously simplistic with the following analysis)
Amazon sells stuff via its virtual store and manages the entire customer and supplier process with software. Makes money by buying stuff cheaper than it sells it.
EBay created a virtual flea market with software that allows buyers and sellers to communicate on all pertinent issues associated with a purchase/sale. Makes money by charging a fee for the right to use the marketplace.
Yahoo of course started with search (pure software) and has become one of the great aggregators of content on the Internet; a new media company. Makes money by selling advertising.
Microsoft's real business today is selling software that sits on PCs and servers. We all know that their feeling pretty vulnerable right now, rightly so, and are trying to become the next Google, Yahoo, Amazon, EBay. Oh yeah, let's not forget their burning desire to be the next Oracle, SAP, EA, Nintendo, Sony, Disney, ... (Is this a focus issue or is it okay not to have focus when your huge?)
Google is search, search and more search. Or in other words software, software and more software. Of course, their revenue model is strikingly different, they sell highly targeted advertising. It's the traditional media revenue model applied to the software business.
What's next for Google? Well, more software. We laughed out loud when we heard that Google announced its spreadsheet product today. We laughed even louder when we see some interpreting this as Excel light, implying its not a threat to Microsoft's core business. Wrong! Google's out to lay waste to Microsoft and while their at it, taking on the entire traditional software business model. They, not Software.com, are the masters of the software as a service (SAAS) model.
Comments