Simple, But Complicated

Google Inc, the company which effectively owns Google is considered today a growing empire among its peers. The company which started out as a search engine has branched beyond the realm of a software engine and has exploited the depths of the industry. What I find most interesting about Google is the way it presents itself; a beacon of Simplicity. The paradox however is in the complexity of the company, and its compounded strategic expansions.

Below take up three issues which have "bloggled" me.

The first fascinating topic on our agenda is the Google Adwords scheme. Untill late 2005 Google was almost functioning as non-profit enterprise, that is until they knocked off the Adwords scheme. A very simple by effective advertising revenue generating machine, Adwords auctions off essentially prime real estate space on it's site. By allocating space for paying (click per cost) customers they have revolutionized the business model for search engines and started a market trend among its competitors. Today advertising accounts for 99% of Google’s profits. My only bone to pick with Google’s Adwords system is that it seems as though (at times) it might be benefiting Google more than the paying customers. Working in the tourism sector for a few years, my experience with Adwords as a marketing tool revealed that while it drove traffic to our website, it was more profitable for Google corporation, and did not really improve our bottom line profits. Perhaps just our companys' website or the services offered, but overall our conclusion was that it worked better for multimillion dollar companies with a multimillion dollar advertising budget.

Regardless, Google is praised for its creativity and online innovation; A leader in its industry. The question however, which I would like to present as the second topic of this blog is whether Googles' transition from a search engine to a conglomerate of IT services is the ideal strategy. In my opinion this expansion marks the innovation and stamina within the company that many others lack. The alternative would be another Microsoft, simply living off it's proceeds and it's previous victories.

Currently, Googles projects include a new upcoming operating system, tons of free software applications, development of an open protocol system (voice communication), the Android phone, and even the development of a Google Office. Wow, are they streching themselves too thin.

The 3rd Issue I would like to draw your attention too is the one that stirs up the most controversy; The privacy rights issue. While Google has so far been labeled as a fairly net neutral company, its magnitude as a net force is almost intrusive. Maybe not for the time being, but their source crowding ability is immense. Just imagine if they every decided to make use of this information for any reason. A recent flaw with Google Buzz made almost everyone’s address and private information public overnight. Not to be too far fetched, but Google in essence be a greater assest to the United States governement than the CIA. Just consider gmail and the number of subscribers which have voluntarily given out their private information. For the time being however, Google is our major source Seeker Of Information (whether ours or others). For the time being however, one thing is for certain, Googling is always our priority.

Another Microsoft or just a revamp?

The Microsoft we have come to know today is very different from the product innovating machine it used to be 3 decades ago. With USD 9 billion in R & D (2009), the question keeps reoccurring: Are they just playing it safe or simply unable to reach a break through outside the software industry. This is precisely my first issue to pick with the still mega-giant corporation. The lack of product innovation and internet penetration is becoming embarrassing; a black hole within the company.. Over used, its umbrella effect is wearing off. Struggling Microsoft examples are all over the net (ranging from Bing to MSN). There ineffectiveness to successfully exploit the internet by integrating their software platform is evident.

So what is the solution? Our next topic is is Mr. Ray Ozzie, Microsoft’s Chief Software architect. Succeeding Bill Gates in 2008 to take on the high profile spot, Ray Ozzie is claimed to be by many critics to be the next Microsoft CEO. While Steve Balmer is known for his energy, audacity, and, marketing capabilities, what he lacks is what Microsoft lacks; Product Innovation. The question is can Ray Ozzie fill this void, and lead the company in its new direction? The answer is purely speculation. But what we do know is his track record at Lotus Notes; A pure genius with an appetite for product orientation and development.

Going back to our present Microsoft, I would like to draw your attention to a recent article written in the New York Times by a former Microsoft employee. Dick Brass, the writer, claims that despite record earnings Microsoft is failing miserably. With a lack of innovation, the corporation has put all their eggs in one basket and seemly has decided to live off the Windows and Office suit proceeds. Even when launching a failed product, they still manage to get it out there (through various predatory tactics). Bundling is a notorious example (my third issue). It is no surprise that an attack of law suits and anti-trust legislation has been plaguing the corporation for years. Microsoft has pulled out all the stops in predatory pricing virtually killing competition. . In October of 1997 the Justice Department filed a motion with the Federal court to order Microsoft to stop the bundling of Internet Explorer with Windows (extinguishing Netscape). They have also been accused being an abusive monopoly by the courts and have paid huge amounts of fines. Their lack of innovation has pushed them towards unethical business practices as the only means to secure their immense profits. The question is how long will this last for, before someone punctures a sustainable hole in their umbrella effect.

Survival of the Fittest

A Glimpse of the Future

This blog takes a closer look at Microsoft from a corporate strategy stand point- Where they were, where they are, and what they will become. What happens when you’re too good. Well, if you ask Darwin 500 years ago he might label you as the king of the jungle. If you ask anyone with a PC today they will probably mention Microsoft (Mac users temporarly aside). Economically speaking, competition leads companies to maximize efficiency through perpetual excellence. Who is to blame for Microsoft’s ability to manipulate markets and competitors. Critics have been accusing them of the 3 E’s: “Embracing, extending, and extinguishing”. The logic behind this is that Microsoft initially embracing a competitive product, extends this product to make it their own, and then adopts a new set of standards (compatible only with Microsoft), eventually extinguishing the competition. Some find this monopolistic, to keep it brief, I call it gaining market share.

It is no mystery that Microsoft today is virtually unstoppable. Perhaps it is a coincidence, the PAC-MAN logo; Chewing up and spitting out competitors and businesses for decades. Politics aside, they are an empire that has not only conquered the software development market, but has branched out into computer hardware (ex: Microsoft mouse, keyboard), home entertainment (ex: Xbox, Zune, MSN TV), MSNBC, MSN web portal, Bing, etc.

The big question today facing the mega giant is what’s next? The answer for those non-tech discerners is a new direction. Where is the innovation? Microsoft needs to get the internet right. With a lot of struggling brands such as Bing and MSN the company is failing to integrate successfully into the net. The Microsoft.Net platform announced a few years ago as a vision for the future is turning out to be just a vision. With a lot of cash (approx. USD 35 billion) Microsoft is in a good position to consolidate through acquisition. If unable to penetrate the internet perhaps they should consider acquiring someone who IS good at it. One thing is certain however, for the time being they do not need the extra profits or synergies, but to retain their spot in the long-run they might.

Turning Gaming, Into Reality

The Four Square concept is definitely an interesting phenomenon with a lot of potential. The ground work is simple, and anyone who is somewhat cyber savvy can immediately witness its’ appeal; A social networking game with amusing features. It is no surprise that the newly launched application has gained immense momentum since its launch less than a year ago (zero to 300,000 thousand users). Personally, I’m not a fan, but that is only because I enjoy my privacy. Others feel the need to inform the whole world about their every move. In any case, with 300,000 members, it makes you wonder what are they doing right. The question however, facing many skeptics today is whether the popular site can sustain this kind of growth, despite the recent changing/evolution of its business model?

As we are all very familiar (by this point) with the popular site, I will briefly recap. Until recently, Four Square was a free publicity, point system, gaming social network. Members received badges, titles (mayor, newbie, douchebag, etc.) depending on how many visits they accumulate. Someone who visits a specific restaurant very frequently can become the mayor of that place. That is not the interesting part however, was IS, is the development of their business model towards a Revenue Based one; hence the theme: Turning gaming into reality.Basically someone who earns the status of “mayor” will actually get rewarded by their prefered restaurant with specials, discounts, rewards, promotions etc. Why? Because you have become the MAYOR of this place

By focusing their attention on businesses now, they have partly succeeded in bring them onboard (check out snacksquare.com as well). One example is the new dashboard for business owners to check out statistics on how many people visited their store, etc.). Furthermore these visitors/users can now unlock real specials, earn coupons, and a lot more). The idea is basically a Cost per Check-In model, where stores are willing to pay money per actual visit referred off Four Square. It’s interesting for now, a game that portrays itself as semi-real. The question is will it last and generate profits for both website and participating businesses. Well, for sure, it needs a larger user base to attract local restaurants, stores and large chains. It also assumes that all members are active (vs. idle). Another question is whether store owners find it rewarding enough to invest the required promotional time. All these questions raise doubts about the success of their current new business model. For the time being, what we do know is that it is an interesting business model, one that links the surreal with the real.

Here it goes Again: One long year

Well, here it goes. Not sure what to write or BLOG about, but I’ll give it a try. The first thing that comes to mind, while blogging is whether I am writing for myself (in which case this blog might be a bit self indulgent), or whether I am writing for others. In my case, I’m just gonna wing it, and blog about what I am feeling at this exact moment-7:37 PM on a Thursday. Everyone hates a routine. Why, because it take the fun out of it. Knowing what is going to happen next, or how your day will unfold simply becomes PREDICATABLE…..And predictable is no fun. Well unfortunately, my feelings at this exact moment are..…Predictability. Stuck in a class room from 9 am- 3 pm. Strolling over to a restaurant/café on Serrano for a beer or a bite. By 4:30-5 PM I’ve had a nice 20 min walk back to the apartment (dragging my laptop and books). Oh crap, I’ve got dirty dishes to wash, laundry to hang, etc. etc. etc. Finally, I’ve finished!….Now I can take a nice hot shower……Wash away the day, get comfortable and of course, the obvious routine of all study. By 11 AM I have an interesting decision. Go out for drinks till 3AM in the morning, and drag my self the next day to class with a hang over (or just tired).. OR have an early night and wake up fresh. Well, it’s a matter of choice. If you ask me, I’d rather get my money’s worth.

I guess my topic for this blog is: Is student Life Routine Life. Who wants to challenge this idea (however trivial it might be). I’m calling this blog Back To School or Back to Routine,,,Whatever one of them….. I know for some of us it might be hard or just weird to be here. Leaving your job, family, friends, girl/boy friend, etc. etc.etc. Well we’ve all made a sacrifice to go back to school. And it is always important to remind ourselves why we are here. One thing, however, we are all sure of, IS that we have probably made one of the best decisions of our lives.

So I go back and say that even though studying might be routine, what comes after is far from it. What awaits us in a year is spontinuity, excitement, and plenty of opportunities. So lets make the most out of this year and let’s try to not sink into any boring routines……And as usual, rules are only what you make of them.