Posts Tagged 'google'

Have you ever forgotten where you were the night before?

Well now Google can tell you!  

I was having a play with Google Latitude recently, and stumbled across a feature allowing Google to track your location history. It even plots it on a map, as seen here! Scary when you think of all the possible uses for it, but a good example of the use of tech. However the question remains, do we trust Google with our data? Until they get subpoenaed I do, but with a lot of scepticism. Saying that, I will be removing my location history pronto!

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How businesses evolve

It’s useful to understand how over the recent years, big businesses have reinvented themselves. I was reading an article recently on the departing Ericsson CEO Carl-Henric Svanberg, which gave an insightful account of the issues facing Ericsson after the dot-com bubble had burst. His model solely focused around consolidation, whilst others in their market either spread themselves extremely thin in looking for new markets to expand into (see Marconi) or acquired rivals to try and quickly expand (see Alcatel-Lucent). What Carl-Henric Svanberg did with Ericsson was to really consolidate, concentrate on their core business of building networks and inevitably cut costs. This worked, and he now leaves Ericsson today in the healthy position of having 40% of all mobile calls made on their network. I think a lot of companies get excited by the profits and market share available to them when they look outside of their domain. 2 large enterprises who are having mixed results are Google and Cisco. Although Google is still king of search, it’s increasingly more lucrative and more prestigious projects such as Google Books are starting to sap resources from it’s search empire. This has had the effect on competitors like Bing taking more market share.

It was also interesting to see how emerging technologies helped to spur growth in the ailing company. Although a large proportion of their spending is still attributed to legacy networks, opportunities increasingly present themselves to expand into so-called next generation networks. 3G networks are fast becoming their bread and butter, with customers such as Three (3) and T-Mobile in the UK having Ericsson infrastructure to power their data networks. Moving forward, with the advance of M2M, Carl-Henric Svanberg thinks that there is the potential for roughly   sim cards to be embedded into devices as seemingly mundane as fridges, microwaves and washing machines. This is where he envisages Ericsson’s next market shift. There’s no doubting the strength of the mobile data market. Whether it hits a natural saturation period or whether advance such as LTE will help it break through it’s glass ceiling are anyone’s guess. However one thing is certain. Due to the requirement for people to be connected on the move, this is definitely a market that will be key for a long time.

The big Twitter debate

Over the last two years, Twitter has taken the Internet by storm. Early adopters (myself included) saw it as just another method by which to communicate to your network, and dismissed it on this basis. However, as celebrities such as Britney Spears and Ashton Kutcher started to jump on board, Twitter slowly started to become more of a mainstream media tool. This was further enhanced by events such as the River Hudson plane crash and the terrorist events in Mumbai. Now Twitter is seen as a fundamental broadcasting medium by many to obtain relevant news.

However, the problem with Twitter is that there doesn’t seem to be any obvious way to monetise their service. They have a massive subscriber base, all of which obtain a free service. Now they even have a large enterprise and corporate client base who use their service not only to promote their brand and products, but also to connect with their client base. Due to the size of Twitter’s user base, the temptation is always there to sell out to a larger player, and there has been a lot of speculation relating to an acquisition by Google. Real time search is the one area within their portfolio that they’ve had problems coming to terms with. However, with Twitter’s real time feed suddenly Google would have specific relevant information about up to date trending topics, of which to target their adverts too. The immediate benefits of this are there for all to see. Google can instantly monetise a service that currently does not have any obvious income stream. Whilst for Twitter, they have direct access to Google’s massive resource pool to be able to compete against the likes of Facebook, who with the acquisition of FriendFeed are slowly encroaching into the space of real time search. Also, Google’s track record of amalgamating newly acquired assets into it’s estate is strong, as is shown by the success of both YouTube and Blogger being able to keep their brand identity and prove successful in their respective markets.

However, Twitter does have an ace up it’s sleeve. With the use of hashtags, Twitter has a direct way of keeping a handle on the latest trends being discussed. They have large investors behind them providing them with the capital to increase their infrastructure. Also, despite the fact I mentioned earlier that their lack of an obvious business model was a problem, it definitely constitutes a nice problem . Currently their valuation is built solely on their subscriber base and their infrastructure. The minute they disclose their intentions, their value would rocket to potential investors, and may well even see them go down the IPO route. Remember that the guys behind Twitter are also the same guys that started Blogger, and sold it successfully to Google.

For my two pence, I think that Twitter would be silly to ignore the threat of Facebook, and sell in a hurry to the likes of Google and Apple. They have an extremely strong brand and an even stronger user base which they can use to their advantage. And just as Google did with the implementation of Adwords, if they can find a way to monetise the mammoth amount of hashtags flying around, I think they would stand a good chance of seeing off the combined Facebook/FriendFeed threat.


My tweet stream

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