Is Google The New Microsoft?

By Aisling Brennan

Account Director

Are we witnessing the birth of a new empire? Has Microsoft been replaced by another virtual empire? Is Google’s influence changing how people access, manage and respond to information?

You can't read any news, blog or technology site without a mention of Google. Earlier this month the acquisition of YouTube resulted in media overload--it seems that most can't seem to get enough of Google.

The reason is that Google has become a ubiquitous presence online. The breadth of it's product portfolio and the resulting online influence is staggering: Google Web Search, Google Book Search, Google Blog Search, Google Desktop, Google Earth, Google Maps, Google Docs & Spreadsheets, Google Video, Google Checkout, Froogle, Google Analytics, Google Video, Gmail, Picasa, Google Talk, Google Calendar, Google Mobile and Google Pack to name but a few! Click here to see more.

As a result Google’s market share dominance is overwhelming. In the U.S. Google is responsible for 60% of all Internet searches and nearly 70% of searches throughout the UK. With similar market share throughout the rest of the world, one fact starts to become apparent: when users want information, Google is their first port of call.

So, it certainly appears like Google domination is inevitable and follows on from Microsoft’s application and browser domination.

But is this a good thing? Is Google straying from its core service offering? Is it deploying well needed resources away from Search towards other “more interesting” projects? Is it losing its core focus? Isn't text-based advertising where all of its revenue is generated? Isn't Search the fundamental basis for their business? More importantly, will advertisers continue to follow and fund these various ventures and "technology playground" projects?

I'm not sure. As cool as these new applications might be, savvy small businesses are not waiting impatiently for Google to create additional tools to integrate their business even more closely with Google (see Google docs and spreadsheets, Google Checkout, Google Analytics). In fact savvy small businesses are increasingly frustrated at escalating CPC costs, clandestine algorithm changes, increasing competition, meagre customer service and more importantly reduced ROI. Savvy small businesses are seeking alternative lower cost PPC networks, vertical search engines, affiliate networks, other niched traffic sources.

In years to come, will this media darling be revered or reviled? I know where I’d hedge my bets…