January 28, 2008

Dave's Industry Perspective


David Matthews

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Dave's Industry Perspective -  

Internet Services

G; I think I am Having an Identity Crisis 

The possibility of Google creating an Internet ID system that renders traditional IP addressing moot, and along with it, web hosting and Internet services as we know it.

Jan. 28 - Dave’s Industry Perspective- Let me first off state that the two companies that I will mention in this perspective are both truly fine companies. Neither of these companies are evil, but, in the competitive sense of business, they are “the enemy.”

The two companies are Walmart and Google. Walmart has become the number one retailer in the world through a very simple principle: Deliver what the customer wants, at the lowest possible price. It has used a very basic strategy: Economy of scale leveraged to maximum benefit. It has put most small and independent retailers out of business over the years.

For small town, and now even big city retailers, Walmart has meant the end of the line for the business. Even American manufacturing companies have gone by the wayside at the loss of retailing distribution when Walmart finds less expensive alternatives overseas. These less efficient, smaller-scale operations simply could not compete in the brutally competitive environment. 

Walmart is not evil. It truly is a great company. For the owners of competing businesses, however, Walmart has been, and still is, “Enemy #1”. 


Now, let’s look at Google and what Google means to you, as the independent TSSP. Google’s mission, according to it’s published statement on its website “…is to organize the world's information and make it universally accessible and useful.” Google is building huge (hundreds of thousands of square feet) data centers around the world, with the publicly stated intention of eventually building multi-million square foot data centers worldwide. They have publicly announced G-Drive, the free Internet based file storage and retrieval service. They are aggressively bidding on wireless spectrum. What does it mean?

It means that old-fashioned web hosting, and Internet service in general, is toast.

When I posted an industry perspective a couple of months ago about G-Drive, it generated much reaction. Some of the readers rejected my analysis, and others whole-heartedly agreed.

However, here is something to think about, not published or disclosed anywhere to my knowledge, but, logically, is surely within the radar and thinking of the Good Folks at Google: G-ID. 

G-ID is a schema or system whereby a user, individual or business, could simply register a unique ID with Google and Google would then route traffic and communications as required, to “organize the world's information and make it universally accessible and useful.” It would effectively render IP addressing and domain registration moot. Oh, yes, and it would be available, FOR FREE. Using massive data center infrastructure and wireless connectivity, the Internet would effectively become, what George Bush once called, through accidental prophecy, “The Google.” It would be supported by advertising and/or other “user influence and access” fees.

It will be a great, free, service for all of humanity. And it makes the Internet hosting and service business, as we know it today, toast. Google will dominate the Internet the way Walmart dominates retailing. Google and Walmart are both fine companies, really. And they are “Enemy #1” to all smaller, less competitive and independent businesses of the world which strive to compete against them and offer like kind services and products.

 

Google's Mission Statement

eXtended story resources

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