With the beginning of 2014, a lot of new changes have been seen in the online world. 2013 was all about Panda and Penguin releases, when we talk about Google. But, in 2014 we have seen Google launch its range of new smart techs that surely have gained attention of all gadget lovers. So, after taking full control of the online world, is Google planning to dominate the real world as well with its new gadgets and products?
In the past, we have seen organizations rule the world only to be thrown back due to their lack of awareness about user behavior and their drastic changes. To name a few, Blackberry and Kodak are organizations that have suffered the fate.
Over the past few years, Google has successfully stayed ahead of the market by acquiring companies for their user base, talent and IP. Being specific, the online organization has integrated in all 143 companies in the past 14 years. And, this is one of the main reasons why Google is way ahead of all its competitors not just in its acquisition numbers but also the money spent on these companies. In order to make the scenario clear, here is a chart showing how much money Google has spent in the past 2 years for the acquisition of companies against the 5 major companies, namely Amazon, Apple, Facebook, Yahoo! and Microsoft.
So, where is all the money spent by Google Going?
Well, if you still didn’t make the right guess, here is the answer. Google spent almost $400 million in buying a not so famous artificial intelligence company named DeepMind Technologies. Also, they spent about $ 1 billion in acquiring Waze, the mobile mapping software company. And yes, all this happened before the Nest Labs deal was actually understood by the market.
Based on the 143 acquisitions made by Google from the year 2001 until now, it has been analyzed that:
- 43% all these acquisitions were related to Google’s search, analytics and advertising products. These acquisitions happened in the early years and later slowed down.
- 49% of the acquisition was related to their other products such as the social features and the Android mobile platform. These acquisitions started almost 6 to 7 years ago from now.
- And the remaining 8% of these acquisitions are actually not much related to their business and have taken place in the recent 3 to 4 years.
What is Google doing with these acquisitions?
As we know, Google is a search engine and an online advertising company. So, why has it acquired these many companies against such huge amounts?
- Part of these acquisitions are a part of “Google X”, a code name for Google’s super-secret facility which runs projects that have a long gestation period and are believed to have a potential of enhancing the current technologies 10 times their present capability.
- Some of these acquisitions such as Nest, are almost like a gamble, depending entirely on how the future will use them. Over the past decade, hardware products, their designs, feature and manufacturing have become highly commotized and hence a trend amongst the users. People check their Design (how perfectly the product has been designed), Features or Software (the new additional features or software provided) and finally the Data (how the company uses the usage data).
Well, no matter how much Google acquires and uses, it is for sure that the day is not very far away when we will be able to track the power usage of our home through Google Drive in the form of a daily report, regulate the thermostat using the Android device in our palms or share home security update via Google+.
Well, it is high time that the hardware companies and manufacturers such as GE, Honeywell and Siemens keep their eyes and ears open especially with the software world, precisely Google making its way into almost every field.