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Google Has To Be A Web 2.0 Girl, Right? It Just Loves To Shop!

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I think that Google must be female, as ‘she’ loves to shop! This year Google has been a on a web 2.0 shopping frenzy, doubling its acquisition levels, and plans to keep the pace going; it is on track to acquire a new company every two weeks this year! Google’s CEO Eric Schmidt said, “The opportunities are there. We can afford it. We’re in a mode of investment for the long term.” Just this year, Google has acquired 19 companies from Aardvark, reMail, Picnik, DocVerse, Simplify Media, Episodic, PlinkArt, Agnilux, LabPixies, Bump Technologies, Global IP Solutions, Simplify Media, Invite Media, ITA Software, Metaweb, Instantiations, Slide.com, Jambool and Like.com.  Google is snapping up start-ups in social networking, mobile technology and graphical advertising.

Google’s spending spree appears to be similar in approach employed by Yahoo, where it helped contribute to Yahoo’s technical fragmentation. But why is Google buying… and buying so many small companies? Is Google trying to get a better and firm grasp on the social web 2.0 and the increasing power of Facebook? It has struggled to keep pace with the growth of Facebook and is also trying to keep up with a rapid rate of innovation in the online world.

Some experts are of the view that Google buys because acquisitions is very much of the Goggle’s culture as it is made up predominately of engineers and that Google buys because it finds it difficult to engage its engineers to work on certain projects; so Google finds it easier to buy a company with a dedicated team. However, if this is the case it raises the question of how Google will preserve its own culture and prevent the construction of technical silos within its own brand. However, the other school of thought is that Google is not great at business web2.0 innovation, which is probably why it likes to buy. However, Google needs to remember that it still needs to support an idea and make it work in the market, something that it hasn’t done too well on till now.

This is because Google suffers from bad marketing. As its culture is predominately engineering and about the web 2.0, it doesn’t understand how to communicate with people and expects consumers to do things just because Google thinks they make sense. Think here of Google Street Views which is being contested by governments on privacy issues.

One thing is for sure, Google is going to evolve. Looking at previous acquisition patterns and web 2.0 announcements, I think mobile is a focus along with search, geo location – linking it all in with social networking. Google will keep looking at new revenue streams, while the automotive sector will require further resources and more acquisitions. So, Google will keep spending till it finds what it wants or may be it doesn’t actually know; as I said Google could be female and I’d love to see a bit of Gucci on her list.

Photo Credit: tinou bao



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