Pete Caputa is sniffing out what I’m smelling as well, Google is starting to go everywhere ads, which as much as they may try it means they’ll most likely lose focus on their online advertising business. They’re in a tough spot, they need to keep growing, but yet they don’t want to screw up what they have.
What does this mean? It’s getting hard for them to innovate. They’re making piles of cash from Adsense, which gives you less desire to innovate. You’re #1, everyone is chasing you, so you have to be extremely paranoid to keep innovating the way a startup would. Google may know that they need to keep innovating, but it’s almost impossible to stay as hungry. Microsoft wants to take their market. Yahoo wants to take their market. And hundreds of smaller companies with nothing to lose want to take their market. Can Google keep innovating to fight them off? I’m not so sure.