I thought we had a lively discussion about Google today as we tried to sort through the impact and implications of Chrome, Android, Apps, Nexus One and Buzz. Here's a video worth taking a look at as we think about Google's trajectory of evolution over the next decade. More details are in the blog.
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Again, the same set of three questions: (1) Why is Google pursuing this? (2) Who besides Google and consumers benefit? and (3) Who loses?
Thoughts.. Reactions..??
An additional video from MarketWatch
Firsly, great title! I highly doubt if it will just remain an experiment!
ReplyDeleteGoogle is pursuing the Fiber Network Infrastructure primarily to make the digital world "more ready" for the "Cloud." Google says the future is "Cloud." But that wouldn't work until one has a very strong communications network to back it up. Does Google want to rely on the Verizons of the world to initiate this infrastructure improvement? Probably not. They want to initiate this themselves. A number of thoughts come to mind:
1. Once Google successfully gets this up and running, customers are going to start expecting more from the other telecom providers. Thus, indirectly, Google is trying to create a market of high speed networks to their benefit!
2. Google, in my opinion, does not want to own this space; they just need to make the ecosystem better so that their "Cloud" services could be easily accessible. They want to give this endeavor a push.
3. Hence, if Google just builds enough of this infrastructure to generate excitement, it should be good. But I do not want to rule out chances that they really go ahead and enter this space in a pretty big way. In this case, the objective would still be to enable the ecosystem, as they would now be leasing these networks to other service providers ("The open access" feature they referred to ...).
This entire episode reminds me of the spectrum auctions in 2008 when Google just initiated the bidding process with the minimum bid but Verizon actually won!
http://techcrunch.com/2008/03/20/breaking-fcc-confirms-that-big-winner-in-spectrum-auction-is-verizon/
I agree with Narayanan. I think this is Google's way to make the Chrome OS more powerful. Such high speed networks would provide amazing capabilities to the Chrome Operating System.
ReplyDeleteFor me this move takes aim at the closed nature or tendency of existing networks to control data flow(The problems google had with telcos over google voice). So rather than just "high" speeds it is more a play towards "network neutrality", and google basically wants networks open for all kinds of data.
ReplyDeleteThough i feel the strategy is very risky as not do they have no experience doing this, this could have repercussions with its existing relationships with Telcos carrying the Android OS. Leaving this half baked could be potentially very embarrassing for Google.
A few thoughts after reading the blog and the comments:
ReplyDelete1) I tend to agree with Narayanan and Sougata that this high speed network will be built in order to provide faster search results. They will be able to capture more accurate information about what kind of data is flowing in its network. It is another tactic to provide even better advertising data by observing the actual e-commerce transactions happen over its network.
2) I did not understand Arvind's point about the relationships with Telcos. As far as I know, the Nexus One phone is available with T-mobile. T-mobile only provides mobile internet and can easily tie up with Google's network. Nexus One is incompatible with Verizon's network and with ATT's 3G service. Can someone please clarify?
Sanjay, Nexus one would be available on Verizon in Spring and since there are newer versions planned i am sure ATT's 3G won't be far away. By saying Telcos, i also lumped in the device manufacturers like motorola, sony ericsson who would be very annoyed with google's strategy.
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