“Make no mistake: Google still has plenty going for it,” Goldman writes. “On any given day, 63 percent of the world’s searches are done on Google. That’s a staggering stat. But that’s where Google’s story still begins and ends, even after so many attempts at generating new revenue from other streams.”
“I liken Google to a kind of trust-fund baby for tech: The company got mega bucks at a very early age, and ever since it has been trying to come up with creative ways to spend it, and far-flung business ventures to make even more,” Goldman writes. “Remember that Google spent over $1 billion on its YouTube acquisition, but even after all these years, the deal still isn’t generating any material profits.”
“Google is indeed at a crossroads,” Goldman writes. “The company gets major kudos for investing heavily in research in development; having lived in and covered the Silicon Valley for the past 20 years, I happen to love Google’s throw-it-against-the-wall-and-see-if-it-sticks approach to innovation.”
Goldman writes, “But Google also has to tread carefully and keep its swagger under control. It’s bitter break-up with Apple is a classic example of Google’s heavy hand and what might have been behind-the-scenes duplicity (oh, no way, we’re going to compete with you. Oh wait, we’re competing with you!) That cost Google what could have been a great corporate partnership and cost CEO Eric Schmidt his friendship with Steve Jobs.”
There’s much more in the full article – recommended – here.