The Google Business Model Revealed

January 29, 2012

Quote to Note:

I just read “Will Google Have to Start a Patent War to Get $9bn of Value from Motorola?” I find much of the write up somewhat interesting and silly. The purchase of Motorola has yet to prove it was a wise move. Nevertheless, there was one statement which now finds its way into the Quote to Note folder. Here you go:

Google’s business model – everywhere – is to disrupt by driving the cost of services down to zero, and monetizing them by selling ads against them. Even if it goes after all sorts of companies aggressively with those Motorola patents, I can’t see it charging per-handset for Android.

Sounds good. The problem is that the model does not apply to Google’s enterprise products and services. But why worry about details?

Stephen E Arnold, January 29, 2012

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