Why Google Can Land Its Jets at Moffett Field and Oracle Can’t
June 4, 2008
The San Jose Mercury News ran a story with the fetching title, “Google to Build Employee Housing at Huge New Complex at NASA’s Ames Research Center.” You can read the story here. Do this now. Traditional media often make the data bunny go on an egg hunt to find a news story moved to a hidden place on the Web site. Moffett Field is the expanse of flat land adjacent Highway 101 north of San Jose. Let’s just say that it’s prime real estate and skip trying to assign it a value.
The most intriguing passage for me in Brandon Bailey article was:
The company says it will build up to 1.2 million square feet of offices, research and development space, company housing, recreation – and possibly even retail shops for Google employees – on 42 acres of the former Moffett Field property, which it will lease initially for $3.66 million a year. The project is part of Google’s plan for long-term growth, according to company representatives, who said details of the development are still being decided. Construction would start in 2013 and proceed over the next decade.
Several thoughts popped into my mind as I mulled over the implications of this story:
- Messrs Brin and Page will not suffer the indignity that Larry Ellison must tolerate when he tries to land his jet after the San Jose airport closes. $3.66 buys a pretty good parking place I surmise.
- The hopes of Microsoft, Verizon, and other companies who have hoped that Google would self destruct in the next year suffered a set back. This deal says that Google is planning for the long haul. The Googlers won’t kick their plan in gear until 2013 which, if the company’s growth rate continues at its present pace, will occur when the GOOG is in the $50 to $60 billion revenue range.
- Well, that solves the recruitment problem. Japanese companies built dormitories. If you know what the Google song, exercise program, and warm up suit will be, let me know.
Outfits like IBM, Microsoft, Oracle, and Verizon are probably scratching their heads and asking, “What’s with these guys? Did Google switch from advertising to real estate?”
My reminder is that the GOOG is 18 months to 36 months ahead of these companies and, by extension, their executives. I anticipate a joint venture among IBM, Microsoft, Oracle, and Verizon to buy Los Alamos National Laboratories where there is a great deal of open land available for development.
Stephen Arnold, June 4, 2008
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