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Is targeting Microsoft keeping Google’s eyes off the prize? April 18, 2007

Posted by Daniel Gardner in Business Thoughts, Google, Internet, TechCrunch, techmeme, Yahoo.
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Today at the Web 2.0 Expo Google CEO Eric Schmidt announced that Google will be releasing a PowerPoint like presentation tool for there online office offering sitting along there current Email, Word Processing and Spreadsheet tools.

Google is obviously serious about taking on Microsoft’s lucrative office suite head on as they now have the four most important applications of Microsoft’s Office suite despite Schmidt’s nonsense comment “We don’t think it’s a competitor to Microsoft Office”.

There is no doubt in my mind that Google are on to a winner here and will gain significant adoption if the product is integrated effectively into there existing office line-up though pricing pressures that Google and other online office vendors are putting on online office products will ensure that Google will never reach anywhere near the profitability they treasure in the Advertising space.

I think that Google needs to stick to there previous and most important strength which is leveraging off other companies platforms to perform advertising which means they need to stop building there own solutions and start growing there partner network, by utilising partners Google can mitigate the risk of moving into emerging product spaces such as online office products and can focus on increasing there advertising revenues (Kudos to Google on there Double-Click purchase), continuing to create these products just means that Google moves further away from being an advertising company and more like a product company (without the fat product revenues of companies like Microsoft).

I think that Google are still a great company and I don’t doubt there ability to grow though I just don’t understand what Google are playing at by expanding into things like Google Office, they are making the right acquisitions in the mobile space and are in a good position to capitalize on this as it emerges alongside the now Microsoft owned TellMe though Google might need to focus on these winners and keep the blinders on things like Google Office, as I have mentioned before in order for Google to win they need to bring the fight to there competitors, out-innovating them at every opportunity while protecting both current and future revenue streams particularly in advertising.

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