Daily Archives: February 27, 2011

Google – What’s Google?

Google has grown within just a few years from a garage based search engine to the biggest and most successful search engine in the world. The one with the most revenue off all. On the way to become that big, they kicked a few other engines out of business and brought others on the edge of going out of business. But, is that all?

John Dvorak, a very well recognized writer, wrote on Marketwatch.com: “Google Inc. does two things well. Search for things and sell ads by the boatloads. Everything else is ancillary and at best a loss leader. This includes Google Voice, Gmail, Google maps and navigation, YouTube and probably the entire online “cloud” services as well as the Android OS along with Chrome”. He further writes, “Did I leave anything out? Probably. But nothing that makes scads of cash for the firm”.

Well, one wonders what made John such an exceptional writer and expert. So, let’s take a look at Google and what they do? I asked my girlfriend. She stated, without thinking for long, “Google is an Oracle for many people”. Boing, there you have it! She is right, when people search for stuff, they use Google, first. But is that really all? Is the entire advertising money just coming from search? No, it is not! Everyone that has a Gmail account finds advertising in the inbox. Everyone that uses Maps finds advertising around the results. That is revenue from properties other than the search box, isn’t it? There are some other revenue sources, Google Docs. While free for consumers, Google sells the Doc program to businesses. Not only small businesses, big corporations, municipalities and other that pay some nice change for it. Well, they haven’t reached Microsoft yet, but still…. .

I use a lot of other Google services and appreciate them very much. Besides the above mentioned, I use calendar, navigation, notebook, translation, dictionary, voice, finance, photos, sites, talk and quite a few others. Are they money machines like search? No! They are not, but they keep me around and when I have to do a search I don’t switch around, I can search right there. While these are not a direct revenue creator, they help make that revenue a re-occurring thing. As a shareholder, I would like that.

Yes, Google burned a few properties on the way to the top. Orkut and a few others. So what? As a technology company that is what you do. You invent new stuff and try it out. Because others didn’t do it, Yahoo! Microsoft and others, now they have to chase Google, or watch completely from the outside. Oh,  Android! I almost forgot. That system has caught up to Apple in a very short time. While they are not selling it, it is used as an investment in mobile search. John, have you heard of that? Smart phones? Tablets? Loss leader? What?

Let’s talk about what Google not is, and what could possibly bring them down from their leading position, at least in my opinion. Call me John, if I am wrong. Greed! Google was/is called the best search engine around. Yes, we can argue about that. That has made them an Oracle for many, many people. In order to increase revenue and satisfy those that always cry and scream for more money, Google has “adjusted” their algorithms in their search engine. That means that competitor directed sites, blogs and other don’t appear at the place they would appear, if they wouldn’t be directed by a competitor. In other words, if you write a research report based on Google results, and a lot of people do, you might not get first hand information! That’s bad! And that is something that would make a loyal user “jump ship” and try something else. I am a living example for that and I consider it. Will that kill Google? Of course not, but if it happens in bigger numbers, it will count at the end of the quarter. In fairness, I am not saying that all the others are honest. I just don’t know.

What Google does in products to create and secure revenue, is top notch and will not make them fail. The way how they apply these products and technology, is a different story. It is what will make Facebook fail, and it will hurt Google as well, if not changed.

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The importance of having a World Class Goalkeeper!

>It is still normal in soccer reporting that the scorer gets the headlines. However, this weekend we saw how important it is to have a World Class Goalkeeper. Look at Arsenal, lost the Carling Cup final against Birmingham City because of a mistake of their “still green behind the ears” keeper Szczesny. Admitted, his defender had his share in that, however, Peter Cech or Iker Casillas would have shown more determination in securing the ball.

In contrast, on Saturday, Manchester United’s Edwin van der Sar kept them in the game, while they sorted out the game against Wigan.

For Arsenal it is important to solve that problem that goes on for almost decades. Wenger loves to put a team on the pitch that plays their opponents into the ground, the goalkeeper position has been neglected for years. Compared to the rest of the squad, the goalie is limping. Soon they face Barca in Barcelona for the second leg in the Champions League, that will not be a game in which the gunners will play out the competition. It will be a game in which a strong presence between the sticks will make the difference. The Gunners don’t have that! After the Carling Cup final, it would be no surprise, if the Gunners end up with nothing again.

Carling Cup: Arsenal’s drought goes on! Birmingham City: Europe, here we come!

>Birmingham FC will play in Europe in the 2011/12 season. While lucky, the 2-1 win was deserved and earned with determination and passion. Martins’ 88th min. goal decided the Carling Cup final in favor of Birmingham City. For Birmingham it is the first titel since 1963 and will serve as a boost in their fight in the Barclay’s Premier League.

Arsenal’s titel drought goes on. While competing in all national and international competitions for 6 years and having another titel up for crab, the loss today leaves the Gunners starving. Arsenal has three more opportunities to end the drought, but today’s Carling Cup final seemed to be the easiest opportunity for a letterhead change.

West Ham – Liverpool 3-1, The New Hammers secure win

In a very exciting and in parts dramatic game West Ham beat Liverpool 3-1 and demonstrated their willingness, and ability, to fight relegation from the Premier League. With their new acquisitions Demba Ba, Wayne Bridge and Thomas Hitzelsperger coming back from injury, Avram Grant and the Hammers displayed much more resistance and possibility in their fight for survival in the English top flight. Liverpool didn’t go down with a bad performance, it was the Hammers that did it on their own by not only fighting but demonstrate ability to play.

While the first half went for West Ham, and a 2-0 lead at halftime was deserved, in the second half,  Liverpool put the game into the Hammers half. The Hammers fought for their life and run some dangerous attacks to keep the Kops honest. It took Liverpool 84 minutes to score and increase heart attack risk on the West Ham side. Carlton Cole then scored the much celebrated winner when Liverpool tried to follow up and save a point.

With the birth of “The New Hammers”, fight for relegation just became much more interesting. From place 10 to 20, everything is possible. Even Newcastle on 9th with 36 points must secure points in order to not get caught in a fierce and nerve racking battle to avoid relegation. Liverpool gave up an opportunity to further close the gap for 5th place, however, with today’s performance (not the result) they are still in.

In the second Sunday game, Fulham visited Manchester City and surprised with a 1-1. The $100 million trio, Balotelli, Tevez and Dzeko stood for a 1-0 lead (Balotelli) after 45 minutes. Duff tied the game and Fulham saved the valubale point. Manchester City lost two points in the battle for Champions League qualification.