(public).sospep.subjects ~ view article ~ google-is-the-new-microsoft

<h1 style="text-align: center; padding-left: 30px;">google is the new microsoft</h1>
<h2>[WHAT]</h2>
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<li>]&nbsp;by <a href="/view/person?id=305" target="_blank">Katie Benner</a> @BloombergView - Benner outlines why she feels that Google could be headed down the "failure to innovate road" that msft travelled in 2000, her advice, Look north to Redmond, Googlers, and worry.</li>
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<li><strong>[ASSERTATION] The Google of 2015 is not unlike the early 2000s Microsoft</strong> &ndash; a hugely profitable company that is having a hard time innovating around its core product. <span style="text-decoration: underline;">Unless something is done,</span> it will likely go through spasms of flailing and discontent that will be similar to msft flailings. "the company is still basically a purveyor of cheap online ads that it sells at massive volume against the things that we search for online.</li>
<li><strong>] Google is a 55,000-person behemoth,</strong> and it&rsquo;s nearly impossible for any company to move quickly and creatively at that size. Among tech giants, only Apple has managed to innovate after becoming so big. Hewlett Packard? Nope. IBM? No way. ( Fear of killing the golden goose )</li>
<li><strong>] google X&nbsp;(aka the moonshots division)&nbsp;- "The most valuable thing that it's produced is good PR"</strong></li>
<li><strong>[ASSERTATION] seismic shifts - </strong>As it always does, tech has shifted seismically once again, and right beneath Google&rsquo;s feet - thanks to mobile computing and apps and social networking. Google hasn&rsquo;t effectively responded to those trends so it hasn&rsquo;t been innovative where it counts.</li>
<li><strong>] "FORGET about a moonshot&nbsp;catapulting Google to the forefront of innovation"</strong> can Google ever catch up in image search, storage and messaging (which will soon anchor products like payments and on-demand apps)? Probably not. Would it be so crazy for Google to go out and buy Pinterest, Dropbox and Snapchat? Probably.</li>
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<h2>[WHY]</h2>
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<li><strong>]&nbsp;printing money, growing revenue BUT stock has underperformed</strong></li>
<ol>
<li>FACT] <a href="https://investor.google.com/financial/tables.html" target="_blank">last full FY 2014</a> Revenue, 56B, net 13B</li>
<li>PRED] <a href="http://news.investors.com/technology/010815-733828-google-facing-more-competition.htm#ixzz3OKxzWVsj" target="_blank">analysts predict</a> it will add 31B in revenue in the next 5 years</li>
<li>FACT]&nbsp;Share price&nbsp;down 11 percent over the last year, versus a 14 percent gain for the Nasdaq and a 36 percent gain for Facebook.</li>
<li>FACT] Advertising accounted for $51 billion of the company&rsquo;s $56 billion in revenue last year.</li>
<li>] Citigroup analyst Mark May says that <a href="http://news.investors.com/technology/121114-730087-google-could-lose-big-if-it-loses-apple-safari.htm#ixzz3OKzeWHDY" target="_blank">60 percent of Google's mobile search revenue</a> in 2014 came from the Apple deal</li>
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<li><strong>] losing search market share, more losses in sight</strong></li>
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<li>v FACT] US search market share dropped slightly, 79.x to 75.x&nbsp;(partly b/c of firefox deal)</li>
<li>] more drops coming if Apple drops google as default search provider (see 1.5)</li>
</ol>
<li><strong>]&nbsp;google 2015 VS msft 2000 </strong></li>
<ol>
<li>ASSERTATION] The Google of 2015 is not unlike the early 2000s Microsoft &ndash; a hugely profitable company that is having a hard time innovating around its core product. <span style="text-decoration: underline;">Unless something is done,</span> it will likely go through spasms of flailing and discontent that will be similar to msft flailings</li>
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<li><strong>]&nbsp;behemoth </strong></li>
<ol>
<li>] Google is a 55,000-person behemoth, and it&rsquo;s nearly impossible for any company to move quickly and creatively at that size. Among tech giants, only Apple has managed to innovate after becoming so big. Hewlett Packard? Nope. IBM? No way.</li>
</ol>
<li><strong>&nbsp;] google X (aka the moonshots division)</strong></li>
<ol>
<li>] Despite all the talk about Google&rsquo;s much vaunted moonshots including ...</li>
<li>] glass,- self-driving cars, internet-connected balloons and drone deliveries &nbsp;</li>
<li>] "the company is still basically a purveyor of cheap online ads that it sells at massive volume against the things that we search for online.</li>
<li>] "The most valuable thing that it's produced is good PR. "It's" codified the idea that Google is always trying new stuff and failing because that&rsquo;s what true, crazy, bountiful innovation looks like."</li>
<li>] covers for failed products - like social networks&nbsp; (R.I.P. Google Plus and Google Buzz), payments (Google Wallet, in remembrance) and storage&nbsp; (wither Google Cloud Platform?). - that could be more germane to its core business</li>
<li>] like msft - reliance on core products - didnt want to kill the golden goose - it was hard to see a world in which Microsoft wouldn&rsquo;t be the backbone of a PC-centric tech industry.</li>
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<li><strong>] core products</strong></li>
<ol>
<li>] Google, too, has a suite of products that are the backbone of post-Microsoft tech growth, which has long been all about the Internet, and it&rsquo;s been hard to see a day when we wouldn&rsquo;t use Google search to sort through massive amount of data online. YouTube is indexing all of the world&rsquo;s video information. Our personal data is being stored in our Gmail and, to some extent, our Google Docs.</li>
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<li><strong>] seismic shifts in tech</strong></li>
<ol>
<li>] As it always does, tech has shifted seismically once again, and right beneath Google&rsquo;s feet - thanks to mobile computing and apps and social networking. Google hasn&rsquo;t effectively responded to those trends so it hasn&rsquo;t been innovative where it counts.</li>
<li>] Facebook captured 28 percent of the advertising moving from offline to online in 2014, up from 22 percent the year before, while Google grabbed 55 percent of that market, according to the bank Stifel.</li>
<li>] could lose the international search market, given that big countries like China and Russia prefer homegrown products like Baidu and Yandex for that service.</li>
<li>] While Google dominates text and video search (thanks to YouTube), Pinterest is way ahead in image search. Amazon and other huge e-commerce sites like Alibaba dominate commerce-related search. Apple is poised to be the big tech company winner in mobile payments. In the race to dominate search apps, there&rsquo;s no clear winner - yet.</li>
</ol>
<li><strong>] "FORGET about a moonshot&nbsp;catapulting Google to the forefront of innovation" </strong></li>
<ol>
<li>] The worse case scenario for Google is that it continues on its Microsoft-like path and lets the world change even more dramatically, leaving it further behind.</li>
<li>] Google should be buying innovative companies, as it did with YouTube, and letting those bets flourish with the company&rsquo;s ample backing. Would it be so crazy for Google to go out and buy Pinterest, Dropbox and Snapchat? Probably.</li>
<li>] But can Google ever catch up in image search, storage and messaging (which will soon anchor products like payments and on-demand apps)? Probably not.</li>
</ol></ol>
<h2>[WHERE]</h2>
<ol>
<li><strong>] READ THE FULL ARTICLE</strong></li>
<ol>
<li><a href="http://www.bloombergview.com/articles/2015-01-12/google-is-the-new-microsoft-and-that-should-freak-it-out" target="_blank">http://www.bloombergview.com/articles/2015-01-12/google-is-the-new-microsoft-and-that-should-freak-it-out</a></li>
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<h2>[WHEN]</h2>
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<li>] 2015-01-12</li>
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<h2>[EXAMPLE]</h2>
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<li>]</li>
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<h2>[HOW-TO]</h2>
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<li>]</li>
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<h2>[REFERENCE]</h2>
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<li>] author <a href="/view/person?id=305" target="_blank">katie Benner</a></li>
<li>]</li>
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<h1 style="text-align: center;">&nbsp;</h1>

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