The Jab-Google Bandwagon Rolls On

June 30, 2008

Phil Wainewright, whose writing I enjoy, wrote “Google’s Culture Not Fit for Enterprise Apps.” The essay appeared on June 30, 2008. You can find the full text here. Xooglers have been picking on the search dominator, and I posted a link to a story that I thought might be a spoof here. Apparently it wasn’t based on some email feedback I received this weekend, but I remain skeptical. What I am sure about is that criticism about Google seems to be on the uptick, and I am not sure why. The company has been consistent in its behavior for years. The biggest change is the company’s increased “transparency”. Googlers are everywhere: at conferences, in the news, on Web casts. Everywhere I look, there’s the GOOG.

Now, to Mr. Wainewright. He is actually picking up on the theme that Xooglers–that is, employees who cash out, quit, or get fired–are revealing that Mother Google has some idiosyncrasies. The key paragraph for me in Mr. Wainewright’s well-written essay was:

It’s a damning indictment, and one that casts a long shadow over Google’s attempts to replace Microsoft’s pre-eminence in the office collaboration software market with its Google Apps suite. As a disruptive competitor, it doesn’t have to match Microsoft Office feature-for-feature. But if it really is unreliable and buggy as Solyanik claims — and the current outage of Feedburner’s Web analytics service lends further weight to this view — then Google doesn’t even make the grade as a business-class SaaS provider.

Let me offer three observations.

First, demographics will help Google. As Google’s push in the educational institutions increases, future graduates will be comfortable with Google and its characteristics. When these graduates enter the work force, I think some of them will continue using Google or take steps to get Google products and services into the organization. I am not sure quality will have much to do with this sell through. I think habit, loyalty, and the notion that Google is pretty good will have some impact. Ergo, the short term and today’s expectations don’t matter so much.

Second, existing enterprise applications are clunky, disappointing, and costly to deploy, customize and maintain. I think that in a deteriorating economy, Google’s approach or that of its surrogates like Salesforce.com will be good enough. If the price is right, Google has a great opportunity to be pulled into an organization. Sure, traditional outfits and information technology departments may balk. But when money is tight, Google can cut a great deal, and maybe some of those “old fashioned IT professionals” could be rationalized. The systems associated with that crowd may strike some youthful chief financial officers as problems, not solutions.

Third, the competitors in the enterprise space are struggling. Oracle is boosting prices. Microsoft is betting the farm on a polymorphic software solution that is really complicated. (If you have not seen the SharePoint placemat, take a gander. You can find it here.) IBM is a consulting firm with loyal customers who so far have been content to write huge checks for solutions, but in a lousy quarter, IBM could face some pressure from upstarts like Google and its partners.

In short, Google can be baffling. I think that as people learn more about Google, more warts and blotches will become visible. Nevertheless, the GOOG is following its own path. By definition, those who are not Googley cannot be expected to understand how the company works, what it is doing, and when it will take certain actions. The “why” is clear: To make money. The “how” is a baffler, but I think the approach the firm is taking is interesting and more disruptive than many think.

Agree? Disagree? Let me know.

Stephen Arnold, June 30, 2008

Update: July 1, 2008, 9 50 pm Eastern; A round up of Google’s woes is here.

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