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Sunday, August 28, 2005
Rajesh points to a guest post in Om Malik's Blogsite by Robert Young wherein Bob highlights that the internet has a deflationary effect on every industry it touches, whether it be financial services, travel, printing & publishing, media & entertainment, or telephony. Google’s strategic plan it seems is to obviously leverage deflation to its own advantage. He adds, "Google’s recent moves show that they are using “free” to gradually devalue of Microsoft’s assets, and thus its market cap. This is part of a mutation of the OS into a whole new animal. Google with their desire to build a comprehensive “platform will make Microsoft’s entire strategic plan and mission, which revolves around the continued proliferation and dominance of the desktop PC operating system, obsolete by making Google itself the (virtual)operating system". In the future, all computing devices, whether it be the PC, mobile phone, TV, etc., will simply be terminals that “plug-in” to Google’s massive server grid and application services. With the increasing price/performance of CPUs, memory, bandwidth, and storage, Google’s strategic edge will be based on their advantageous cost of processing bits. Free services, supported by advertsing become the new model (user should be comfortable sharing data & behavious though). In future google shall provide solutions for meeting all computing needs & Bob writes tantalisingly that hardware devices shall be bought based on such criteria. This way, Google is using the internet to systematically devalue Microsoft’s assets, forcing a “Microsoft’s Black Monday” on the wall street in future. David card adds Google is leveraging themantra that built Microsoft: who controls the UI controls the user; who controls the API controls the programmer. Great businesses are made of this.
Category : Google, Desktop |
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