My Blog Ulterior Motives

Google goes BIG with Google+

When Eric Schmidt stepped down as CEO of Google earlier this year, it gave way for Larry Page to take over the position.  He was the co-founder of Google and its first CEO, and only gave up the position because high-profile investors wanted to bring in someone they deemed as “more serious” before the company went public in 2004.  In many ways Eric Schmidt brought great leadership to the company, and took Google from a search engine and transformed it into a Technology company.  The irony lies in a smiliar situation seen with Facebook.  Mark Zuckerberg has also been pressured to sell his company, or give up his post, but unlike Larry Page he never did.  You have to think this is something that has bothered Larry Page over the years as he’s watched the success of Facebook under Zuckerberg, and you have to wonder what Google would look like if Page had never stepped down.

Google has expanded its profile with its Android operating system, Gmail and its acquisition of YouTube.  Its only true failure has been in social media.  In a previous post (from last year), I discussed Google Buzz, which was Google’s combination of a Facebook news feed and Twitter.  It really never took off, and although its still built into Gmail, I have to imagine its usage rate is low.  However, as we’ve watched Google’s acquisitions and product releases over the last few years it was obvious they were up to something.  PC World dug into this fact slightly deeper, discussing the many products they’ve bought or released.

All this makes sense.  Every tech company has been trying to combine products into one clean stream of information for users, based on both outside info and info based on what your friends are doing or have done.  Think about it.  Facebook wants you to check in everywhere you go, maybe add a user review or picture, and have your friends see this and comment.  This builds on the ‘social buying’ trend, with the idea that it will lead others to also attend these venues.  Through all this Facebook can sell localized deals/ads, and drive revenue.  This is only one facet of the potential growth these companies see in coupling all of these products into a clean stream of information.

In 2009 Google announced a partnership with Twitter, to include Twitter’s stream of real-time tweets in Google’s search results.  This meant if you searched for, Casey Anthony, it would show standard search engine results as well as real-time information from Twitter.  The partnership was one of the first integrations of social information in main stream search.  However, that partnership ended this week.

All of that, brings us to Google+.  Google’s answer to well, everything.  The rumors have already begun that Google will start to fold many of its products into elements of Plus, and that everything Google will flow through this stream of information.  Some of the features announced seem very interesting, such as individual circles of friends (ability to restrict access for certain users to certain items), real-time collaboration features and group video-chat “hangout” sessions.  The reactions have already been fantastic.  Google’s stock price has gone up significantly, and Analyst’s think there is promise based on the fact that 70% of Google’s current revenue is search.  Facebook leads the digital ad space market with a 17% market share, where Google only holds 9%.

The outcome, is anyone’s guess.  When Eric Schmidt commented on his tenure at Google, he stated that his biggest downfall was in social.  With Page taking the reigns and igniting a new spirit in Google, I think Google+ has a real chance to be successful.  Google’s Android mobile operating system has lacked a sort of “competitive advantage” to differentiate from Apple.  Now, Android will have strong integration with Google+ and develop features that will make people want an Android phone. 

When I saw the iCloud that Apple announced a few weeks ago and saw it in person I thought, “how is anyone going to compete with this?”.  From the things I’ve read on Google+ I’m starting to think, “God only knows what Apple and everyone else is going to try to invent in an attempt to compete with Google+.”