Organisation of big service providers - Google

Organisation of big service providers

GOOGLE

Gianmarco Piva⁓

[email protected]. 143555

giovedì 18 marzo 2010

mailto:[email protected]

mailto:[email protected]

INDEX

The company

Financial numbers

Investments

Business model

Advertising and user profiling

2giovedì 18 marzo 2010

THE COMPANY

A multinational public cloud computing and Internet search technologies corporation,

Internet-based services and products,

97% of profits from Advertising

en.wikipedia.org


MISSION

“To organise the world's information and make it universally accessible and useful”

⁓

“Don't be evil”Paul Buchheit Google engineer


HISTORY SO FAR...

Source: “How Google makes money” by Manoj Jasra.


FINANCIAL NUMBERS

Revenue: $23,650,560,000

⁓ 97% of revenue from Advertising;

Profits: $6,520,450,000;

Market Value ⁓ $200 billions;

Acquired more than 30 companies in 9 years;

Investments in: software development, clean technologies, biotech, healthcare and more;

Stock price: from $85 of the IPO in 2004 to the actual $570 per share.

GOOG: Google stock price (Aug. 2004 - Mar. 2010)


INVESTMENTSFree Wifi - Free wifi connection for the Mountain View community;

Wimax - With Sprint to provide mobile high-speed Internet access technology (a 100 millions users market at the end of 2008);

Satellite - $60 millions to bring the Internet in the developing countries;

Balloon wifi - With Space Data, to provide an Internet access technology which is superior to satellites for isolated areas;

Backbone - A long distance high-speed network. With Current, the company invested $ 100 millions.

✓ Strengthen and secure infrastructures;

✓ High-speed Internet access (i.e. time spent online and usage volumes);

✓ Internet access for unconnected populations.

WHY?


GOOGLE AND THE CRISIS

Google prospected growth (2008-2012)

Source: “Everything you always wanted to know about Google…But were afraid to ask” by FaberNovel


BUSINESS MODEL

As we said, Google mainly sustains through Advertisment.

To guarantee the best advertising possibilities: many sources of information (i.e. its applications, websites and services).


BUSINESS MODEL

SEARCHES

85,78% of global search market share;

7,2 billions of page views every day;

620 millions users daily;

20 PB processed daily.

GMAIL

146 millions every month.

YOUTUBE

20 hours of videos per minute;

81,9% of shared embedded videos on blogs;

39,4% online video market share (USA).

ANDROID

60,000 new phones a day

20,000 apps

Google sites and services


BUSINESS MODEL

BLOGGER

270,000 words written every minute;

66,7% of traffic from outside US.

ORKUT

80 - 100 millions users.

CHROME BROWSER

5,22% of web browsers market share.

ANALYTICS

57% of usage on top 10,000 sites.

A Lot More...45% of products in beta

Apps, Calendar, Checkout, Docs & Spreadsheet, Groups, Picasa, Reader, Talk, Translate, Webmaster Tools, Finance, Maps, Earth, Toolbar, Chrome OS, Buzz, Doubleclick, Feedburner, Knol, Sites, Wave, App Engine, OpenSocial, Alerts, Buzz, Latitude, Health...


BUSINESS MODEL

12

ACSI’s consumer satisfaction index: 2000- 2009

“Search market share reflects past

behaviour, but the ACSI is predictive of

future consumer behaviour.

Historically it has been a very accurate

gauge of future consumer behaviour in other industries.”

⁓Larry Freed

American Customer Satisfaction Index (ACSI)


BUSINESS MODEL

‣ What can Google do with these services?Track users’ online behaviour to guarantee the best resources for advertisment.

13

‣ How?Google is able to:

retrieve data from users’ phone, computer, mail, and their entire digital life;

directly provide Internet pages, the cables delivering the Internet, users’ entertainment (Youtube) and news (Google News);

know “where everything is” (Google Earth, Buzz and Latitude), users’ health records (Google Health), finances (Google Finance) and relationships (Google Buzz).

These are incredible sources of information for the company.Any other organisation has these information-retrieval capabilities.


USER PROFILING

14

According to a recent research,

Google have access to

99,2%

of the navigation statistic of each user


USER PROFILING

WEBSITES. Data managed into Google-owned websites provide terrific informations and profiling “material”. The most of them are embeddable (a part of a websites can be inserted in other websites). This amplifies the company’s tracking possibilities.

ANALYTICS. Google Analytics is used in 9 out of 10 Italian websites and in the majority of the big portals worldwide. ∼80% of every website use Google statistical applications (e.g.Twitter)

FEEDBURNER. This is a service to handle all the websites RSS-feeds’ and give statistics about them.


USER PROFILINGLIBRARIES HOSTING. Standard libraries (e.g. JavaScript - JQuery) are stored and available on Google-controlled servers. If a user downloads one of these libraries, he will be profiling material.

ADSENSE. Adsense and Adword are two services giving the chance to embed a small piece of code into websites to rise some money out of advertisement. Google is able to track trend and tendencies (other than raising a lot of money).

Http PROTOCOL REFERRAL. When browsing through websites, informations about someone’s path are available. Cookies and log-files are good indicators of on-line behaviours. Google have access to first hand information and data.


PROSPECTIVES

New web-based applications and services keep coming. (Google knows what users are buying, where they are doing it and how much they are spending for it, but also personal tastes and trends).

It is extremely easy to end up under Google’s Eye.

Google is planning to run some tests using fiber optics. This is a win-win situation: Internet service providers are forced to invest in high-speed connection (i.e. new applications development opportunities and even more data - and users’ informations - exchanged daily).


REFERENCES

“Everything you always wanted to know about Google…But were afraid to ask” by FaberNovel: <http://www.slideshare.net/dreche/everything-you-always-wanted-to-know-about-googlebut-were-afraid-to-ask-presentation>;

“FoolDNS vs. GoogleDNS” by Matteo G.P. Flora: <http://vimeo.com/7982723>;

“Google” by Wikipedia.en: <http://en.wikipedia.org/wiki/Google>;

“Google Business Model” by ericl368 on Slideshare: <http://www.slideshare.net/ericl368/googlebusmodelshared>;

“Google Tops In Search Satisfaction According To Pre-Bing Survey” by Greg Sterling: <http://searchengineland.com/google-tops-in-search-satisfaction-according-to-pre-bing-survey-24080>

“How Google makes money” by Manoj Jasra: <http://www.webanalyticsworld.net/2007/04/how-google-makes-money.html>

“The Beast File: Google” by hungrybeast.abc.net.au: <http://www.youtube.com/watch?v=R7yfV6RzE30&feature=player_embedded - >.


http://www.slideshare.net/dreche/everything-you-always-wanted-to-know-about-googlebut-were-afraid-to-ask-presentation










http://vimeo.com/7982723




http://en.wikipedia.org/wiki/Google




http://www.slideshare.net/ericl368/googlebusmodelshared






http://searchengineland.com/google-tops-in-search-satisfaction-according-to-pre-bing-survey-24080












http://www.webanalyticsworld.net/2007/04/how-google-makes-money.html






http://www.youtube.com/watch?v=R7yfV6RzE30&feature=player_embedded








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Organisation of big service providers - Google