Verizon Droid Resistance Is Futile

Verizon is making a big bet on Motorola’s Droid. Verizon is spending millions of dollars on advertising and Motorola is going “all in” on Google’s Android platform. It seems everyone in the mobile industry is suffering from iPhone envy. All the major carriers are struggling to compete with the iPhone and Google is stepping up to give them an answer.

This has to be salt in the wounds of Microsoft, who has had suffered several missteps and has seen the mythical Windows Mobile 7 get dealayed over 2 years. Windows Mobile 6.5 launched earlier this month to little fan fair. People are not considering Windows Mobile 6.5 a real competitor to the iPhone. Microsoft is not really in the converation now and Google has to be celebrating. Motorola’s Droid is certainly going head to head with the iPhone.

Twitter World

The Twitter phenomenon has been truly amazing. I wrote last year that I thought Twitter would be bought or dead in 2009. Well they are not bought or dead. Since then Twitter has been embraced by the media, celebrities, and any other narcissistic individual that wants to tell the world in 144 characters or less what they are doing. What is even more interesting is they still have not found a business model or solved their infrastructure problems. It is down so often that the Twitter fail whale should be their homepage.

I was recently at Web 2.0 and I heard Ev’s conversation with John Battelle. Not much has changed. He seemed very coy about his plans to figure out a business model or solve Twitter’s scalability issues. Even during his talk I could see several people in the audience getting the Twitter Fail Whale trying the access Twitter. But one of Ev’s problems might be solved sooner rather than later. The two search titans Microsoft and Google struck deals with Twitter to get access to its valuable real time data. Both Microsoft and Google most certainly had to pay for it. Sheryl Sandberg made it a point to say she didnt believe in charging for data. Early this year Ev closed another round of financing putting the total at $100 million with a whopping $1 billion valuation. With all this hype Twitter is seeing their growth plateau  and they are getting more and more competition from Facebook.

Google Docs Privacy Scare

Google has a certain bravado when it comes to how it runs its cloud based services. However they have recently suffered a privacy glitch that might make people think twice about the security and privacy of their information in cloud based services.

Google said, “We’ve identified and fixed a bug which may have caused you to share some of your documents without your knowledge. This inadvertent sharing was limited to people with whom you, or a collaborator with sharing rights, had previously shared a document.”

This is a huge debacle for Google and they seem to be less than transparent about the impact. Google responded to a TechCrunch inquiry, by saying that it was an isolated incident affecting less than .05% of all documents. The damage may not be widespread, but it’s still an unsettling lapse in security.  

Google has a tendacy to keep these types of things very quite. Like when Gmail goes down it takes them forever to admit something is wrong. There have been several mishaps in the last year that should call into question Google’s coding and testing practices.

Google Takes Gmail Offline

Google announced on their blog that Gmail can now be taken offline with Google Gears, a free open source browser extension. This is one of the most obvious moves for Google as they try and make Windows more and more obsolete by building more capability into the browser.

Gmail which is still in beta after more than 5 years has been having a huge growth spurt. Over the last year Gmail has grown over 43% and with offline access I am sure the growth will continue. Gmail is one of Google’s only success stories out of their core search business. If I was Yahoo or Microsoft I would be more concerned than ever about Google taking more market share and more effectively monetizing those new users.

Google Says Employees First Shareholders Second

Google (GOOG) released there earnings this week and had a couple of surprises. First their revenue was stronger than expected due to the economic meltdown. Good news for investors, it looks like Google is more recession proof than most. But here comes the bad news. Google took a $1 billion charge to write down bad investments in AOL and Clearwire. Second, Google is repricing their stock options for employees costing shareholders almost $500 million. This is nothing more than corporate charity for Google employees. Eric Schmidt, Google CEO, said that, “At least 85% of employees have stock under water.” That certainly makes for a lot of unhappy employees.  This really makes a mockery of the “align employee interests with shareholders” argument. What this tells me is Google is saying we don’t care about shareholders and our stock is not going to be going up anytime soon. It also says we will do just about anything to keep our employees.

Google Kills Print Advertising

More bad news for newpapers. Google is exiting the printed advertising business. Today Google announced on their blog that they would be cutting the project entirely, Spencer Spinnel, Director of Google Print Ads, writes:

 

In the last few months, we’ve been taking a long, hard look at all the things we are doing to ensure we are investing our resources in the projects that will have the biggest impact for our users and partners. While we hoped that Print Ads would create a new revenue stream for newspapers and produce more relevant advertising for consumers, the product has not created the impact that we – or our partners – wanted. As a result, we will stop offering Print Ads on February 28. For advertisers who have campaigns already booked, we will place their ads through March 31.

Google Cuts Projects and People

Google is human and not immune to the downturn in the economy. Google announced that they are cutting 100 recruiters and ending deals with several contractors. Now they are cutting several projects like Dodgeball, Jaiku, Mashup Editor, Notebook, Catalog Search, and Google Video. 

I am sure this is the start of a bigger trend to re-focus and prioritize engineering resources across the company. Some of the lavish perks I am sure will also be on the chopping block as Google positions itself to weather the tough economic storm ahead. Google’s quarter looks to be under pressure according to Piper Jaffray analyst Gene Munster, who said in a research note that “Google’s paid clicks are tracking down in December, and that may put pressure on the fourth quarter.”

Regardless of what happens anyone who is in the advertising bsuiness will suffer in this economic down turn. The easiest thing for a CEO to cut in tough times is the marketing budget.

Motorola Phone Business Continues Nosedive

When Dr. Sanjay Jha took over Motorola’s handset division he made some quick decisions to standardize on fewer platforms. One platform he took a huge bet on was Google’s Android operating system. Sales have been declining and Motorola continues to lose share in the market. They have failed to have a real blockbuster product for several years. PhoneScoop reported that they expect Motorola handset business to announce a massive layoff soon. This could mean bad news for Microsoft and Windows Mobile. The rumor is Motorola might bet everything on Google’s Android. This would be a really desperate measure especially since Motorola has yet to release an Android phone. Mr. Jha is motivated by pure greed. If he succeeds in rebuilding the mobile business for Motorola, he gets about $100 million over three years and 3 percent of the independent handset business. If he fails — he walks away with about $30 million.

Lenovo iPhone Killer

Lenovo has been busy finalizing their new smartphone code named the “OPhone”. Compared to the iPhone it looks to be a killer device. Some Chinese bloggers got their hands on one and did a comparision against the iPhone. The dimensions closely mirror Apple’s iPhone but there are some surprises like a 5MP camera with a flash and a 16GB micro SD slot.

Early in December photos leaked on the OPhone and it was rumored to be built on Google’s Android platform. This would be a big step up from Google’s G1 device in many ways. Lenovo and China Mobile could have a legitimate iPhone killer on their hands. Time will tell but if this is build on Android, Google is quickly closing the gap on Apple.

Google Apps Has No Future

For a little more than two years Google (GOOG) has been in the productivity apps business, trying to chip away at Microsoft’s Office dominance with over 500 million users. First they went out and bought a bunch of start-ups including Writely, Tonic, XL2Web, and JotSpot. Then Google gave them a new paint job and duck taped them together calling them Google Docs & Spreadsheets.

For the past two years they have been trying every strategy in the book to try and get traction in the market. First it was consumer free then it was an enterprise paid model. With all the P/R hype, all the data points to Google Apps being an utter failure. According to Compete, Google only gets 4M unique vistors to their Google Docs & Spreadsheets Web sites. Still the irony is while jouranlists were busy predicting web based apps would make Microsoft Office obsolete, they were busy typing away using Microsoft Word. Google even got on the feature treadmill and started banging out must have features like “print” and “charting”. Still no one is showing up to their party. Read more

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