John Archambault:
Digitalist
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| June 3, 2006 |
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| Google's Expansion | |||
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It seems that every time I turn around, Google is releasing new software, or putting together a team to work on some exciting new project. What is fantastic about this are the great things that Google is creating - everything they make is second to none. But investors - of which this writer is one - must ask themselves if this expansion is too much too soon. Considerable capital is being spent to recruit the best talent in the world, and the company has succeeded in creating a progressive environment where talented people can flourish. But will the profits be in line with the expenditures? GMail, googleEarth, googleVideo, Picasa - the list of high quality software tools goes on and on. There's no doubt in my mind that Google is setting the trends for virtually all aspects of home computing. The math that guides the logic of its network - not to mention the creative logistics behind that network - are the foundation of the internet search technology that drives their income stream. Can this income stream continue to support the amazing projects that the company keeps coming up with? Right now, there is no need for investors to panic. The income stream from searching is solid, and will continue to grow: there is no true equal to Google's product, and this becomes more widely known each and every day. And with Google's amassed human capital, as well as its creative environment, the future seems secure. But the bottom line is the bottom line, and investors are looking for more than just security. Google will need to develop an income stream aside from the profits from search advertising. Exactly how that will happen is something that this investor will be keeping an eye on as the company becomes more influential and pervasive. |
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