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Thursday, August 31, 2006
Google/Apple: Would Barney approve?
The Atlanta Journal-Constitution
You need a scorecard these days to keep track of who’s aligned with whom in the online industry wars.
Google signed a deal to become MySpace’s search engine. Then, Microsoft reached a deal to handle Facebook’s search.
Google Checkout rolled out this summer, with some folks calling it a “Pay Pal killer.” Pay Pal is the eBay-owned company used online for financial transactions.
Nevertheless, Google and eBay announced this week a deal in which Google will provide text ads for the auction giant outside the U.S. Guess who handles text ads in the U.S. for eBay? That would be Google competitor Yahoo. Google and eBay also agreed to enhance “click to call” functions on each other’s Web sites, enabling customers to use the Internet to talk to an advertiser.
But wait, there’s more. Google also announced it’s now offering Google Apps for Your Domain, which enables small businesses, universities and others to use, within their own Internet domain, a free package of services including Gmail, Google Calendar, Google Talk text and voice messaging, and Google Page Creator, which creates Web pages. In exchange for the free service, Google runs ads. The company also plans to launch a paid version for larger clients.
Google had already been offering its own word processing and spreadsheet software. While a lot of analysts this week looked at the Google Apps suite as a head-on challenge to Microsoft, Google was quick to play down that line of thinking.
Then came the news that Google CEO Eric Schmidt joined Apple’s board of directors. Business Week had this transition of blog headlines this week: “Google vs. Microsoft, For Real,” “Now It’s Google + eBay” and “Wait, Now It’s Google + Apple. Or is It?”
Tech Crunch’s Michael Arrington, a top industry blogger commenting on the Schmidt news, wrote: “This is starting to look like Google/Apple/AOL v. Microsoft/Yahoo/eBay.” Another commenter quickly added: “I would agree with you Mike, but after the deal that eBay just did with Google - I’m not so sure which side of the [fence] eBay is sitting on.”
So what do all these moves mean? Popular blogger Om Malik wasn’t impressed by Google’s foray into small-business software. However, he thought Schmidt’s joining the Apple board could mean huge potential changes in the digital-music industry. And Malik especially attached significance to this move as Microsoft starts to ready its new Zune music player. Malik wrote: “Is it too hard to imagine - watch the video on Google Video, and download it on iTunes store? Both parties win? iTunes being included as part of Google software pack, or part of Google Toolbar? Google driving music-related searchers to iTunes store?”
Don Dodge, director of business development for Microsoft’s Emerging Business Team, disagreed with Malik. Wrote Dodge: “Strategic alliances, board seats, and press releases make for good stories, but business is driven by real customer demand for products and services. Years ago when I worked in business development we called these things “Barney Agreements.” You know …”I love you, You love me, …”
Technology reporter John Markoff wrote in today’s New York Times that Google and Apple have a lot in common, but they are also competing in developing smart phones. Markoff’s final word on the significance of Schmidt on the Apple board came from Paul Freiberger, a Silicon Valley historian: “It’s part of the classic yin-yang competition in Silicon Valley, where innovators cross-fertilize each other’s thinking and then go out and clash in the marketplace.”
Not exactly a model for lovable Barney, is it?
