What is Google Buying?

Google is now the 800 lb gorilla. It gets what it wants. Microsoft tried to buy Yahoo, but was rejected. They tried to buy Facebook, but settled on only a slice. Now Google wants to buy Twitter for $1 Billion.

Twitter

Twitter


Questions have been raised if this is enough? What are they buying? Twitter doesn’t generate ad revenue and if Google added ads to twitter I expect there would be an outcry, and the users would find something else to use.

There is talk about using twitter as a real-time search. OK, that’s sort of what Google is after. But why?

Then there is android, the cell phone and netbook operating system. It will be made available free to hardware manufactures. WOW a free operating system. That’s never been done before (sarcasm).

Everyone is talking about “cloud computing” as the next evolution of the internet. What do you need a PC for if you can store your files on the net, run apps when needed and communicate freely online. The internet becomes the operating system. So a cell phone or net book is all you need. You may not even need a cell phone. After all with Skype you can use you device as a netphone. So with wi-fi you have all you need.

Google has pioneered the ad based revenue model of the internet. It has driven the cost of web apps to zero. Now the same may be true for operating systems. This also drives the cost of hardware down. Soon cell phones will be free, sorry this is already the case for some. Even PCs have been offered for free by DSL providers. Most of this is based on fixed time contracts. The question is, can everything be free?

Perhaps it will once Google runs the world.

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