Why Google is flawed (editorial)

Google, the giant of the web, is flawed right down to the base of its business model. In fact its future is lead by this key idea, connecting people to its ads. Google makes all of its money from ads. In fact although it get a 30% cut from android app sales, this basically funds the running of android services, not even development. So how is google ever going to make more money? Nobody knows, but here’s my theory. Google should provide a two tiered approach to its service, much like the approach of Spotify and the majority of android apps. Offering a free version of Google mail Docs etc with ads, keeping the crucial ad stream but also a “pro” version, with for example larger storage space, customer service etc. in return the user receives no ads on Google Services. Google used to make a lot per user, but I’d be surprised if it even made 10p a month off of me. The key point here though is that I would pay much more than 10p to be free of ads.

Ads are annoying, distracting and completely the opposite of the image that Google goes after, of a friendly, open, happy company. This is weird. Considering their array of products and the amount of users frustrated by ads and Google’s disregard for keeping its UI clean from ads. What would I pay for all this? Google Docs, Mail, Plus, Android, Maps, Search, Chrome, Youtube, Images, News, equate to a lot of services all of which I use regularly, most at least once a day.

So imagine this; Google announced recently that they have $8.63 billion dollars a quarter, they have over 1billion users, of which 250million own android devices. Of those billion maybe a tenth would opt for this service, but how much would it cost. Google could take in as much revenue a month just by charging the 10% $21.57 a month. Which when you think about this is low considering the services that they offer. But wait, they make on average $8.63 a quarter of of us, how about this then? Charging people who don’t want ads $10 a month which increases their profits and keeps there ad business alive on other adsense enabled sites, e.g GadgetCore!

Furthermore Google’s Chrome and Android OS are getting increasingly expensive to develop and market, they need to make money if of them. The make money from Market, but not from a anything else. Google Music of course is going to make them money as well, but buying something like spotify could really boost there business model. Furthermore they know how to make great phones, and they own Motorola know, they should bring new talent to Moto while keeping it separate from Google, but spreading Google’s core principles of clean, open, and user friendly UI. Motorola could make them a lot if they turn it round, their design is good, their look is good, but their software is lacking, as are the specs of to some of their key devices. Increasing sales of Motorola devices and actually selling them in Europe could boost Google’s revenue. Sounds likely? Motorola yes, charging for services? No

To put this into perspective Apple’s recent quarterly result gave them profits which were over 8 times bigger than Google’s with $100billion in the bank, just sitting there. Considering they both have competing Mobile OS’s and now hardware divisions , it seems ever likely that Google is going to compete directly with Apple. This leaves the question of how a company with a fraction of the money can compete at an R&D level, of course apple has plenty of other products such as their mac to develop but Google has its web platforms to develop as well.  Innovating at a  fraction of the cost is key, and the best way to do this is the 1980s Apple way; a small team of the best engineers, programmers, and designers in the Country.

I hope Google can compete in the years to come, but the restrictive business model is holding them back, they need to start charging for stuff, and until they do, they will never be able to a mass the cash needed for software development, such as Microsoft and Apple.