Sunday, June 15, 2008

Analysts to Google: Buy Salesforce

Analysts to Google: Buy Salesforce

For some reason unknown, once in a while some analysts may decide to step up and tell a company how to run itself.

Let's skip the obvious and go deeper into the right question: does Google want to succeed in anything other than advertising?

Google Application, although well developed and well integrated into SF.COM, is still an experimental toy for Google. Yes, it has potential, but a company can only focus on limited number of thing at a time.

Google has proven to be extremely efficient in terms of monetizing search related technology. From the proportion of spotlight that Google's products received, it is easy to conclude that essentially the next big thing is still advertising. Youtube and Android, for example, are just new platform for advertising, and we can't really say the same for Google Applications.

To promote Google Application aggressively is to fight a war in a battlefield that Google has not yet claimed dominance. It's time-consuming, resource-draining and profit-thinning. Why would Google do that right now?

Of course, Google has interest in this market, but it's not time yet for Google to become serious.

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