Wright of Way

Monday, November 28, 2005

What Happens When You Land on the Google Hotel?

As if on cue for my series looking at the Super Seven, BusinessWeek comes out with a cover story on Google, called "Googling for Gold" (subscription required). It's a pretty good article that mainly talks about the Google Effect and how tech start-ups are foregoing VCs and heading straight for the big money - Google itself - in hopes of selling directly to search monstrosity. It's also causing Silicon Valley VCs quite the problem because fledgling companies that were coming to them with scribbles on a napkin and a burning desire are now passing them by.

As an entrepreneur myself - I kind of agree with the logic. Why give some slick VC firm 40% and a seat at the table (read, letting the wolf in the sheep's pen) when I can cash out to Google if my idea is good enough?

So how does this fit into our look at the Super Seven?

This is the way I see it - the rich media web will be the epicenter of marketing for the next 10-15 years. The proof is already in that demonstrably illustrates the broadband web's ability to sell (persuade, educate, market, advertise and entertain) better than any other media. The challenge with marketing on the web today is that there's too much information. You need a way to sort through it all. That's where Google enters. I know - kinda basic. Where Google really makes a big difference - the aforementioned Google Effect - is that it with all its money, it now also controls the future of other developments. Like Microsoft, Apple and Sony have for so long, so will Google.


When Google bought start-up Keyhole last year (now part of Google Earth), it added another key ingredient to its offerings. Location-based search. When Google bought Blogger (which this posting was created with), it gained another piece of the future tech pie.

Think of it this way. Ever played monopoly? Didn't you hate it when your little brother got you to land on Broadway or Park Place with hotels. Then he proceeded to take that money and buy tons of little houses on every corner of the board. With a $120 BILLION market cap, Google can now afford to take chances on lots of little "houses" throughout the tech sector and essentially tilt the future of landscape in its favor.

That's the Google Effect, and why they're going to be a Super Seven Star for years to come.

Next issue - Yahoo!

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