I recently read a blog post by a friend of mine, Graham Lawlor, who admitted that he's a bit obsessed with Google. In his posting Graham references Google's "game changing" technologies such as search and web mail. Then he discusses how IM/Chat needs a game-changing application and that Google would be a prime player for such a change.
While Graham made some good points, as did the Forbes article that he referenced, I don't get the obsession with Google from within the tech community in the enterprise. Sure, Google changed, or actually defined the search landscape. And yes, it's obvious that they made a mint on the advertising model built around search. But how does this apply to the enterprise other than making lots of money from enterprises trying to advertise their brands on search results? I wouldn't be the first person to state that Google does or does not have a place in the enterprise. But I have to wonder, if it did have a place, what would that place be?
In trying to define that answer I tried to put aside my general feelings that Google is over-hyped. But I'm not sure I got too far on that. Here's why:
First, Google has some great products and they obviously have smart engineers. And they have a great brand, which will go a long way especially when trying to sell advertising space on the Internet. But I am having problems bridging the gap between advertising revenue and enterprise software revenue. A lot of people have been discussing how Web 2.0 and Enterprise 2.0 will change the enterprise software landscape. This will be done by forcing application vendors to design new delivery models for their software applications, and make it easier for people to access their applications in more easily purchased and deployed formats. But does this mean that software will be free for enterprises because it will completely funded by an advertising model? I really hope not because as an end-user I would not be happy in that model. Maybe I am wrong and Google has some other strategy. The certainly wouldn't be the first ones to try it (witness Yahoo's not-so-recent move and AOL's recent move to create enterprise offerings).
Next, is the enterprise ready to move their data outside of their organization? While Graham comments that Google changed the game in webmail, webmail in fact has been around for a long time. While Google's interface is nice (although I actually like Yahoo's webmail interface better) and changes the paradigm for organizing email (because rather than filing them you simply search for them), I don't think that Gmail a) changes the game or b) that this will have a major impact on large enterprise software implementations. We simply haven't seen large organizations move their entire enterprise messaging applications external to their organizations, unless it is a managed environment rather than an open, hosted community. Do you think a major Investment Bank will move their email infrastructure into Google webmail? I am guessing no. The reason is that there are too many data points that require integration with the messaging infrastructure. For example, we have just spent years upgrading all of our products to integrate tightly with a corporate directory so that a user can be identified once for every application, including vertical line-of-business applications, within an organization. Now we are starting to see demands for integrating with the phone system, desktop video, video conferencing, and other items that require advanced levels of enterprise infrastructure. How would a Google messaging infrastructure integrate with a company's phone switch?
In my opinion, Google will surely have an impact on the enterprise. However, their impact may in some cases be indirect. Instead of directly changing the game by causing millions of messaging (whether it is email or IM/Chat) users to migrate to a Google model, I think Google will influence enterprise applications to upgrade their thinking and delivery of their applications. For example, we see that Microsoft Office 2007 has already integrated the concept of search throughout your entire mailbox, much in the same way that Google introduced this search in Gmail.
I also think that Google, and other managed/hosted infrastructures, will have an impact on small to medium size businesses that do not have large/existing messaging and directory infrastructures. These organizations will require a place to go to get their identity, and they will require a way they can login and communicate with others. However, I am not convinced that Google will be the one to solve this problem widely as I can't see a financial trader patiently watching advertisements flash on the side of their screen while they are trying to communicate price information to a potential customer. Instead, that trader will require an application that completely optimizes screen real-estate, one that meets all of their very specific compliance requirements and one that delivers messages faster than the messaging applications of their customers. Is this Google? We'll see…