What is Google Doing?

Friday has finally come and Larry Page is set to speak at CES in just 40 minutes. Google Blogoscoped‘s comments page on Google’s upcoming Google Pack software bundle is running rampant. Questions questions questions, and so few answers!

The truth is, Google is doing many things today that leave the world in suspense. For example: Why would Google make a deal with Wal-Mart to sell PCs for $200? It doesn’t make sense to do that because “profit margins are bad enough in the PC business,” says Cringely. Why would Google want to offer free Wi-Fi to an entire city? Why would Google purchase several computers and put them in Heathrow Airport?

Let me ask you this: If you owned 70% of all gas stations in the world, and you could give away cheap cars to anyone willing to take them, would you do it?

This is essentially what Google is doing. Anybody who uses a computer today, uses the Internet. Anybody who uses the Internet uses Google. And when you use Google, Google makes money through advertising. Spend a few dollars one time to buy a few computers, and then wait until you’ve made that money back. How long could that take? Regardless, everything Google makes after that is profit. The subscription model usually generates more profit than the purchase model. . . .

The more webpages there are, the more real estate Google has to provide ads. The more real estate Google has to provide ads, the more profit it makes. Google wants everyone to have a computer and to have Internet access because it profits them!

Does this make Google selfish and greedy? No! They’re connecting the world’s producers to the world’s consumers, just like eBay. I want targeted ads in my Inbox to recommend products that I’m likely to buy. Don’t you?

As for 2006 and the future beyond, I guess we’ll just have to wait and see. Page speaks at CES in 15 minutes. Let’s just hope whatever is revealed lives up to all the hype.

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