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Catching Upto Stay Ahead

Sunday, September 25, 2005

When the Google Talk system was release last month, it set tongue waggling not that there was a great deal to say about the product, a free, feature meagure instant-messaging and voice-over-internet chat system. But Google, without a clearly stated long term strategy, sets off buzz and speculation with every move it makes especially since it sold more than 14 million shares worth of $4.1 billion in stock offering last week.

Instant messaging is already well established, ofcourse, Yahoo, MSN, AOL have offered it for years and net telephony provider Skype (Now part of Ebay) has 51 million people using its system. So why would Google with an $80 Billion empire built entirely on search, bother playing catch up on a product that seems unlikely to earn it money?

The same reason a hotel offers free Wifi, hey are not doing it to make money on wifi, it is to get people to come to the hotel. Google has launched a raft of products this past year and its late entery into the software features war suggets that it wants users commited to the brand, not just the search box.

As Microsoft and Yahoo compete for the lucrative search market, Google is fighting back, Many of the leaders of Google come from come fromcompanies that have lost to Microsoft multiple time in the past SUN, Novell, Netscape. They are not going to sit back and just play defence, if offence is more their style, new plays are sent to unfold.




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