Rumors and speculation are abound with talk of Google considering the purchase of the Reuters news agency. To many, the move seems unlikely but if it happened, it would certainly change some dynamics in the search world and the news world.
Google’s always one of the big talking points in the search engine world and when they announced a few weeks ago they would be selling stock to the tune of $4 billion or so, they became the talk of the business world for a while too, particularly with what they would do with all the money.
In a recent article by Gord Hotchkiss of Enquiro, he suggested that as long as someone else, namely Microsoft, controlled the “chokepoint,” Google and others would always be at a disadvantage. The chokepoint in this case is the operating system called Windows and Microsoft has exercised firm control over it for years.
As Hotchkiss put it:
Currently, Google is building a war chest. They know as long as they’re not in control of the choke point, they’re incredibly vulnerable. The recent activity shows Google desperately trying to add layer upon layer of touch points with its user base. Chat through Google. Network socially through Google. E-mail through Google. Search the desktop through Google. Unfortunately, each layer is built on the Microsoft OS. It’s like building your fort on enemy territory. At some point, the landlord may just kick you out. And I’m not sure $4 billion is enough to change that.
Now, the only Google is going to get there is through innovation. They’re not going to outspend Microsoft. They’re going to have to come up with something darn near insane in its vision that just might work. There’s been talk Google building their own network of Wi-Fi connected homes throughout the country and beyond. That’s certainly visionary thinking. The problem with visionaries is that even though they may have a wonderful vision of the future, sometimes they’re willing to literally do whatever it takes to reach that vision.
Gary Stein over at Jupiter Research points out Google buying Reuters isn’t likely to happen but if they did, it would give them some strong content to put on the Wi-Fi network they are considering for the future.
So what exactly is Google going to do with that money. Right now they are at war with Microsoft, at least in the legal sense. The fights over Dr. Lee will linger for quite some time. It’s also obvious, Google’s going to China. Eventually, Dr. Lee will be able to lead the team there the way they want too. But some issues still arise. As long as the PC remains the primary entry point into the Internet, Microsoft will always have a leg up as Mr. Hotchkiss explained so eloquently.
Some speculate on a Google operating system and while they could do it, to outdo Microsoft would take something pretty incredible straight out of the chute. While Google certainly has it’s strong points, it would take decades for them to beat Microsoft in this field. Google must find another way around them. Could Google build another national network like the Internet? It’s been speculated too. I would think many would hesitate from leaving the current system.
In order to get a new chokepoint, they’re going to have to reinvent the wheel. They’re going to have to come up with something new and so brilliant they people will have to take note. Some type of new interface to get on to the net because at this point, the only way to beat Microsoft and for that matter, Yahoo and the others will be to redefine and change the current way of doing things. They will need to eliminate their competitors as chokepoints. To do that though would require some tough tactics with a lot of groups. You have to be able to play hardball and do some things others might consider evil. Does Google have the inclination to go on that road? Many people are willing to die for a cause. They never say they’re willing to kill for it. Is Google will to get nasty for their future?
John Stith is a staff writer for Murdok covering technology and business.
