What will Google become in the future?
Posted by 11090507 on septembre 30th, 2008
It was on September 15, 1998 that the domain name “Google” was registered. This year is Google’s ten years anniversary. Ten yeas ago, the office of Google was set in a garage in the Silicon Valley in California. Today, it becomes a giant of Internet times which has about 11000 employees all over the world. What’s more, Google’s share price in the stock market has soared from $85 to $431 and P/E ratio close to 75 since 2004. Why Wall Street investors vote on Google with such unprecedented confidence which seems unthinkable?
In fact, it’s natural that Wall Street is bullish on Google’s future when Google make use of technology to create a Search Engine with brilliant prospect. Over 0.3 billion people use Google.com each day, 5 billion each week. It has been proved as the dominant Search Engine in the world. Besides, Google’s online advertising tools such as Google AdWords and Google AdSense, make ads precision-targeted. That’s why businesses and companies are willing to pay big money to Google to ensure their products and services appear at or near the top of its search lists.
As the power grows, Google not only leaves its rivals like Microsoft and Yahoo far behind in the domain of Search Engine, but also forays into other fields such as Browser, media and Wi-Fi. Compared with other present browsers, Google chrome is a new revolution in the field of Web browsers with its superior features such as task manager of websites, visual browser history and quick launch bar. What’s more, users can see a list of running browser processes on system and the using amount of memory.
In October of 2006, Google purchased online video website YouTube for $1.65 billion, signing Google’s march on the media world. Google already had Google Video but why buy YouTube? There are three reasons for this acquisition:
1. The popularity of YouTube
At that time, there was no place for Google Video to enter into the top online video site while YouTube and MySpace ranked No. 1 and No. 2 respectively.
August Hitwise data reflects the following in terms of rankings (based on share of visits):
* YouTube: 45.46%
* MySpace Videos: 22.99%
* Google Video: 10.25%
* Yahoo! Video: 6.06%
* MSN Video: 5.92%
2. Community of YouTube
Over 35 million users in the U.S alone were active in uploading, sharing, commenting and ranking video online at that time. The huge virtual community made Google water.
3. Advertising and Money
In fact, the transaction of $1.65 billion would not be crazy for Google. If YouTube serves 50 million videos a day, that will be 182,500,000,000 a year. And if advertising service is 2.00 cents per video, that will be $365,000,000 a year, not mention users’ loyalty and stickiness to the website.
Although Google never gets rid off some troubles such as investigations and lawsuits, the empire of Google is in its meridian period. Besides Adwords, Gadgets, Search, Blogger, Picasa, Adsense and Analytics, Google owns Google Talk, Gmail,Google Docs, Google News, Google Reader, Google Maps and Google Earth. Two weeks ago, Google just released Google Phone. Maybe tomorrow we will hear Google Moon or Google Mars. I often hear the words like that “I am only one individual, but with the power of Google, nothing is impossible.”
What will Google become in the next decade? Will it turn into an omnipotent force both on the Web and in the real society? Let’s wait and see.
Reference:
http://www.searchenginejournal.com/5-reasons-why-google-will-buy-youtube/3876/
http://money.cnn.com/magazines/business2/business2_archive/2006/01/01/8368125/index.htm
