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Google and the Golden Goose
by Andrew McCaskey
Why Threaten the Golden Goose ?
Why would Google threaten the Golden Goose of search based targeted advertising by picking a fight with handset and netbook manufacturers ?
Because they must. In ten glorious years Google has established and dominated the search category, but as the demographic baton gets passed to Baidu – the Chinese search engine – and with Bing gathering close to 10% market share a few months after launch, competition has arrived in full force.
Gigantic companies have to make really big moves in order to move the needle at all. A succession of Google initiatives that have failed to gain traction have at least failed fast. A small few, such as the location based Latitude fit well within a mobile focused universe, and when combined with search could leap to the next level.
The recent acquisition of Gizmo5 puts Google at last in a firm connect to the public switched network. A data only Google-phone, marketed in parallel with a carrier but not as a phone-offering (much like Amazon does with the Kindle and the Sprint 3G network) might keep carriers happy. The handset and netbook manufacturers will be bent out of shape for a short time – then figure out what their odds of success might be trying to develop a worthy competitor to Android and the iPhone.
Netbook manufacturers will stretch XP for another year or two – but that long in the tooth strategy is going to run out of steam fast, and by that time, Chrome OS will have traction.
Google’s not killing the Golden Goose. Just moving to a greener pasture. {sharethis}
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