Holding Google to Its Promise: "Don't Be Evil"
The Google Revenue Equation, and Why Google’s Building Chrome OS
Excerpts from Mashable.com
It’s not about how Google makes money, it’s about where
Google generated about $21 billion in revenue last year. The vast majority of that revenue, well over 95%, comes from advertising via its search engine and its AdSense program, which places ads on millions of websites, including Mashable (Mashable).
The Google Revenue Equation
Thus, while Google has a lot of complex algorithms that go towards improving its revenue, it really has one overarching equation and correlation that always holds true. I have faith that you’ve guessed it by now. Here it is:
Revenue = Amount of Time on the Web
Google Chrome and Google Docs have not only increased web-based use, but they have spurred their competitors to build products that bring users onto the web more and for longer periods of time. In fact, it’s rumored that Microsoft Office is coming to the Cloud very soon. Google Docs changed the game, and Microsoft reacted.
Google hopes for the same reaction from Microsoft and Apple to Chrome OS. Its biggest selling points, directly from Google, are that it will “get you onto the web in a few seconds,” that “most of the user experience takes place on the web,” and finally that “all web-based applications will automatically work and new applications can be written using your favorite web technologies.”
This doesn’t sound at all like Google’s trying to build a competitor that users will choose over Microsoft. Instead, it sounds like its goal is to get people onto the web faster and for longer. Getting you to spend more time on the web is why Google based its OS on Chrome. You can expect that Microsoft and Apple will incorporate the best features of Chrome OS in their future iterations. That’s exactly what Google wants (and by the way, since Chrome OS is open-source, Google’s making it easy).
As long as you’re on the web, Google wins. So we need to stop framing the Google-Microsoft battle in the context of “Chrome OS vs. Windows,” because Google will not win a straight up battle. And guess what? That’s not Google’s goal. We need to frame it in the larger context of the Google Revenue Equation and how much time we spend on the web.
Chrome OS is just another step in getting us online, both directly and indirectly. If you view the battle with this in mind, then you realize that Google will almost certainly succeed. Google will have won once again.
It’s not about how Google makes money, it’s about where
Google generated about $21 billion in revenue last year. The vast majority of that revenue, well over 95%, comes from advertising via its search engine and its AdSense program, which places ads on millions of websites, including Mashable (Mashable).
The Google Revenue Equation
Thus, while Google has a lot of complex algorithms that go towards improving its revenue, it really has one overarching equation and correlation that always holds true. I have faith that you’ve guessed it by now. Here it is:
Revenue = Amount of Time on the Web
Google Chrome and Google Docs have not only increased web-based use, but they have spurred their competitors to build products that bring users onto the web more and for longer periods of time. In fact, it’s rumored that Microsoft Office is coming to the Cloud very soon. Google Docs changed the game, and Microsoft reacted.
Google hopes for the same reaction from Microsoft and Apple to Chrome OS. Its biggest selling points, directly from Google, are that it will “get you onto the web in a few seconds,” that “most of the user experience takes place on the web,” and finally that “all web-based applications will automatically work and new applications can be written using your favorite web technologies.”
This doesn’t sound at all like Google’s trying to build a competitor that users will choose over Microsoft. Instead, it sounds like its goal is to get people onto the web faster and for longer. Getting you to spend more time on the web is why Google based its OS on Chrome. You can expect that Microsoft and Apple will incorporate the best features of Chrome OS in their future iterations. That’s exactly what Google wants (and by the way, since Chrome OS is open-source, Google’s making it easy).
As long as you’re on the web, Google wins. So we need to stop framing the Google-Microsoft battle in the context of “Chrome OS vs. Windows,” because Google will not win a straight up battle. And guess what? That’s not Google’s goal. We need to frame it in the larger context of the Google Revenue Equation and how much time we spend on the web.
Chrome OS is just another step in getting us online, both directly and indirectly. If you view the battle with this in mind, then you realize that Google will almost certainly succeed. Google will have won once again.
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