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Is Google on the way out?

by on August 5, 2010

After reading a recent article in Fortune Magazine entitled “Google: The search party is over” the author brought up a good point that got me thinking about how fast technology grows and how far ahead of the game you have to be.

When Google was first created in 1998, while Larry Page and Sergey Brin were wandering the halls of Stanford, they could never imagine what their precious PageRank algorithm could bring to life.  The two graduate students, single-handedly changed the way people access information on the internet and how people communicate.  However, that was 12 years ago, and the technology market has changed drastically in that time period.  Google has done some pretty good things over that time period, gobbling up such companies as YouTube, Admob and DoubleClick.  The company’s name has gone from just that to a verb.  When you want don’t know what something is or where something is, nine times out of 10, someone will tell you to just “Google it.”

They have also created a TON of other applications that all filter essentially back into their crowning jewel, the search box.  Whether its Google Adwords, Apps, Docs or any of the other numerous applications they have created, the ability to use the applications via search is always paramount.  According to a number of industry analysts, 91% of Google’s revenue is from Adwords and 99% of their profits from last year was from that same program.  Google is also projected to have an earnings growth of 18% this year which is absolutely ridiculous for most companies but not for a tech conglomerate at the top of the mountain.

If Google doesn’t come out with or be an integral part of the next best thing then they run the risk of being the industry’s next Microsoft.  The boys in Redmond burst on to the scene with their brand-new OS but other ventures throughout the years, have not taken off as they would have wanted to (see: Windows Mobile, Bing).  However, they have continued their success with the staple program for any successful business, Microsoft Office.  They are also coming back with newer iterations the programs I just mentioned which are supposedly stronger, easier to use and more targeted to what consumers want.

Ironically, it is this model that Google needs to take from Microsoft, figuring out what consumers want and the way that the access their data is going to be crucial for them to grow in the future.  Many more people are on sites such as Facebook and Twitter which give people data quicker than ever.  Social networking is the next mountain that needs climbing and Google better get on board before it gets left behind. There are rumors throughout the interwebz that Google is working on a program, “Google Me” that will dwarf what Facebook has done to date and yet again revolutionize the way we do things on the web.  This could be it for Google if this new application isn’t a sure-fire winner.  They could very well be relegated to having total revenue estimates of 18%-19%, which is just a measly 6.5B.


From → Tech

  1. jspartansc permalink

    I do not think google needs to do anything… is doing what it always has….searching, and then letting you click on search links that make them money. The reason google allows their services to be free is cause of ads.

    Why stop whats good? I know one day they will have to, but thats not for another 10 years…by then ill have my hover board and be set….but until then ill click on links making google money.

    Estimates say that almost all business will be done over the internet in 25 years, well that will mean google will make more money with their online ad business….

    yes Android is great, but all it truly will accomplish is the same thing google does now…connected phones to the internet making money on ads in them…

    I dont want google to change…cause then that means i have less of a shot to take over the world i mean internet…

    but all in all great article, its all about spurning critical thoughts, and that my friend is what you have done…

  2. noajayne permalink

    I agree with the previous comment. Google doesn’t need to change… just yet. Eventually, sure they’ll have to grow. Which is what they’re trying to do. Which is what they attempted to do with Wave, but obviously that didn’t work out. Google is making changes, small changes, but they’re growing with the rest of them. Honestly, I don’t see Google going anywhere, and I would totally follow them to the ends of the earth.

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