Filed under: Products and services, Rants and raves, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Marketing and advertising, Sony Corp ADR (SNE), Headline news
In the world of Google Inc. (NASDAQ: GOOG), each passing day brings more news about some added feature, idea, business partnership or gadget, and this day it is no exception. Despite much hype that Google would be announcing the “gPhone” today, instead: “Google along with 33 other companies are announcing Android, the first truly integrated mobile operating system.” What’s particularly notable is that it’s available under a mobile open source license.
This is becoming very Google-esque — a major partnership announcement! Google watchers (and shareholders) can appreciate that Google does not want to be in the hardware business, at least not right now. The company is in the partnering business. It has made the very wise decision to create as many partnerships as it can, attractive to both celebrations given that partners will make money by working with Google, without a new cost. Its selling point to Internet users: we are the nice guys and we bring you so many features that make your life easier and fun (sounds like Apple Inc (NASDAQ: AAPL)). How can someone resist that?
Google hopes to create not ‘a’ new platform for cell phones, but ‘the’ new platform for cell phones. In doing so the company will be expanding the Google universe.
Google has already supplanted Yahoo Inc (NASDAQ: YHOO) as the leader in search and advertising on the Internet and the company wants to do the same on cell phones; to be the “ultimate relationship guys.” The company is positioning itself to become the de facto software company for the internet in the same way that Microsoft Inc (NASDAQ: MSFT) was and is for most of the personal computer industry. And the Internet is going wireless and growing wireless, and sales of wireless devices and cell phones is outpacing PC’s by a wide margin.
In the past, when other companies came up with product ideas that either threatened Microsoft’s existing businesses — or created new products that management thought would be good for the software giant to compete in — it was able to overtake its small competitors. WordPerfect, WordStar, Lotus Notes, NetScape, and Sony Corp ADR (NYSE: SNE) PS3’s all were pushed to the sidelines. However, Google has grown so large, so fast, and in an area that Microsoft did not have a solid grasp upon, that it is now the 1000-pound gorilla in the room. Google has the momentum, and is making it very compelling for other companies to want to join up with whatever new developments it embarks upon. This, in turn, has created momentum in Google stock, which is now trading around $725 per share, up about 55% for the year.
Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm.
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