Computerworld
As Google turns 10, enterprise success in question
The search giant celebrates its 10th anniversary of incorporation this month
Juan Carlos Perez (IDG News Service)  08 September, 2008 08:08

Most computer industry companies would feel satisfied with ruling the highly lucrative and technically complex search engine advertising market -- but not Google.

As the search giant celebrates its 10th anniversary of incorporation this month, riding a years-long bonanza from its search business, it is also a scrappy underdog with lofty aspirations in the world of software for workplaces.


At 10-year mark, Google's glossy facade shows cracks

As such, Google, the unmatched consumer search engine champion, must compete against seasoned and formidable IT providers like Cisco, Microsoft and IBM. This is no small undertaking, requiring a long-term commitment and heavy investments, while facing real risks.

The jury is still out on whether it's wise for Google to invest significant resources in providing software for enterprise search, office productivity, mapping, collaboration and communication.

It's estimated that about 98 percent of the company's revenue comes from consumer search advertising, making the company's Enterprise unit a small side business currently, at least from a dollar perspective.

Industry observers recommend that IT and business managers keep this in mind as a risk factor when considering buying enterprise products from Google.

Although Google maintains it is committed long term to its enterprise products, it isn't unheard of for large companies to change course and pull out of non-core businesses with little advanced notice.

The warning should be heeded particularly by CIOs in large companies contemplating a major investment in products such as the Google Apps Premier hosted communication and collaboration suite.

"I would absolutely ask that question," said Forrester analyst Rob Koplowitz. "As long as 98 percent of Google's revenue comes from other sources, this question of whether they're in [enterprise software] for the long term will always come up. This isn't their core business."

Burton Group analyst Guy Creese concurs. "In its heart of hearts, Google wants to succeed as a provider of software to large enterprises, but they haven't yet signaled that it's a do-or-die kind of thing," Creese said.

The highest-profile product in Google's Enterprise unit is Apps, whose free versions have proven very popular with individuals, small and medium-size businesses and educational institutions.

Computerworld Buyer's Guide - Vendors Matched to this Article

Comments

Post new comment

Login or register to link comments to your user profile, or you may also post a comment without being logged in.
The content of this field is kept private and will not be shown publicly.
Enter the fully qualified URL, eg. http://www.example.com/
  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd>
  • Lines and paragraphs break automatically.

More information about formatting options

Add to Google
Computerworld Buyer's Guide - Vendors Matched to this Article
Zones
Zone logoZones provide focussed content from Computerworld and leading technology partners.
Newsletter Subscription
Newsletter Subscription
Sign up for our Computerworld newsletters!
Syndicate content Syndicate content
 

Computerworld Webinar

Thursday, June 11th, 2009
10:30am EST (Sydney, Australia)
Screening at your PC

Computerworld is hosting a 30 minute live webinar to help you to learn how unified communications can save you money, foster innovation and business agility by making it easier for people to find, reach and collaborate with one another.

Register Now

Computerworld Community Comments
Whitepaper

Providing Business Continuity and Disaster Recovery for Microsoft Cluster Server and Windows Server 08 Failover Clustering Apps

Clustering provides high availability for mission critical applications. A well implemented cluster tolerates failure of individual components to deliver a much increased level of availability and resilience. Get implementation tips now.

Enterprise IT Buyer's Guide
Find Technology Vendors Fast
 
Find vendors by name | Find by category
Sponsored Links
 
Send Us E-mail | Privacy Policy
Features List | Media Kit | Advertising | Contact Us

Copyright 2009 IDG Communications. ABN 14 001 592 650. All rights reserved.
Reproduction in whole or in part in any form or medium without express written permission of IDG Communications is prohibited.