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Posted by on Nov 26, 2012 in Internet |

Google’s bid to influence the entire value chain

Google's bid to influence the entire value chain

Today it is no wonder that, within the normal operating dynamics of large companies, they expand their portfolio of products or customers by acquiring other companies. These acquisitions, as a rule, come to meet strategic needs or talent looking to incorporate the company, two reasons in the case of materialized, among other moves, to Motorola’s mobile division or buy the start-up VirusTotal . Thanks to these movements and their own initiatives, the Mountain View have diversified its service portfolio to the point of being able to provide with means, the entire value chain that links it to the user or, at least, capable of exerting a strong position this influence.

Gradually, Google has been making acquisitions (although it seems that the one announced today ICOA is false ) and partnerships that have enabled secure their position of influence in the market: buying Motorola, its agreements with Asus, Samsung or LG to manufacture terminals are good examples of that search to offer a “100% Google experience.” So what’s missing from Google to complete the circle? The answer is simple: the access network.

It has long been said that Google hopes to become an operator with which to compete with AT & T or Verizon Wireless and, indeed, the proposed fiber network that the company has launched in Kansas ( Google Fiber ), leaves much clear that this vision has become a reality and Google is already an operator who controls (or influences) the entire service delivery chain that receives the user: providing content (with its broad portfolio of services), is present in the terminals and access doors (Android, alliances with manufacturers for the Nexus series, the Chromebooks or Chrome browser) and, with Google Fiber and other alliances, is also in the access networks.

This scenario, in my opinion, can have two readings, one good and one bad. On one hand, these movements in which Google gets to have influence on the terminals, access networks and content have some air monopoly surely benefit not to research anything Google has opened in the United States but, in the If Wi-Fi networks (in which Google was already present in the United States, thanks to its partnership with Boingo) they are an exchange of services “in exchange for free advertising display”. In addition, Google has always clashed with operators in issues net neutrality because they always have accused Google of being the only benefit of a business that was based on their infrastructure and investments, an area in which Google Fiber has entered amaze everyone with speeds up to 100 times the average connection speed available in the U.S..

Monopoly or diversification?? Basically, the two are not so different from each other and walk related but, as a rule, we talk about when we give some negative connotation to the matter at hand. It has long been rumored that Google wants to become an operator and, of course, a fight to “those that put obstacles” in fact, according to some media (such as the Wall Street Journal), the Mountain View could be in talks with satellite communications providers in their efforts to develop a business model as a service provider in the field of mobile communications.

Many times we look at the movements of Google (or any other big company), almost as isolated actions, but the convergence of all these movements and how Google is positioned to be present in a number of parts that make our navigation possible, in my point of view, pose an interesting scenario as long as they comply with its famous Google Do not Be Evil.

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