Perspectives: Why Google Won’t Focus on Business Software

Vembu, Sridhar, “Annother View: Why Google Won’t Focus on Business Software”, Government Computer News. (September 27, 2008).

“So what is Google’s plan? It is fairly obvious the company is in it to put Microsoft on the defensive on its home turf, to diminish that company’s offensive capability in the Internet. It is also perfectly clear why Microsoft wants to be an Internet player: as Google has shown, it is a higher-margin business even than its monopoly-profit core business.

So why is business software so much less profitable than the Internet? I can think of two reasons: 1) purchasing departments that know a thing or two about supplier margins and specialize in putting the squeeze on them and 2) sales and support costs, particularly support costs. When you sell software to businesses, they have all kinds of support expectations, which add to headcount. A search engine or a news portal isn’t expected to provide any customer support…”

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One response to “Perspectives: Why Google Won’t Focus on Business Software”

  1. This is getting a bit more subjective, but I much prefer the Zune Marketplace. The interface is colorful, has more flair, and some cool features like ‘Mixview’ that let you quickly see related albums, songs, or other users related to what you’re listening to. Clicking on one of those will center on that item, and another set of “neighbors” will come into view, allowing you to navigate around exploring by similar artists, songs, or users. Speaking of users, the Zune “Social” is also great fun, letting you find others with shared tastes and becoming friends with them. You then can listen to a playlist created based on an amalgamation of what all your friends are listening to, which is also enjoyable. Those concerned with privacy will be relieved to know you can prevent the public from seeing your personal listening habits if you so choose.

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