Organisation of big service providers - Google

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  • 1. Organisation of big service providers GOOGLE Gianmarco Piva ⁓ matr. 143555giovedì 18 marzo 2010
  • 2. INDEX The company Financial numbers Investments Business model Advertising and user profiling 2giovedì 18 marzo 2010
  • 3. THE COMPANY A multinational public cloud computing and Internet search technologies corporation, Internet-based services and products, 97% of profits from Advertising 3giovedì 18 marzo 2010
  • 4. MISSION “To organise the worlds information and make it universally accessible and useful” ⁓ “Dont be evil” Paul Buchheit Google engineer 4giovedì 18 marzo 2010
  • 5. HISTORY SO FAR... Source: “How Google makes money” by Manoj Jasra. 5giovedì 18 marzo 2010
  • 6. FINANCIAL NUMBERS Revenue: $23,650,560,000 Stock price: from $85 of the IPO in 2004 to the actual ⁓ 97% of revenue from $570 per share. 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, GOOG: Google stock price (Aug. 2004 - Mar. 2010) healthcare and more; 6giovedì 18 marzo 2010
  • 7. INVESTMENTS Free 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); WHY? 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. 7giovedì 18 marzo 2010
  • 8. 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 8giovedì 18 marzo 2010
  • 9. 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). 9giovedì 18 marzo 2010
  • 10. BUSINESS MODEL Google sites and services SEARCHES YOUTUBE 85,78% of global search 20 hours of videos per market share; minute; 7,2 billions of page views 81,9% of shared embedded every day; videos on blogs; 620 millions users daily; 39,4% online video market 20 PB processed daily. share (USA). ANDROID GMAIL 60,000 new phones a day 146 millions every month. 20,000 apps 10giovedì 18 marzo 2010
  • 11. BUSINESS MODEL BLOGGER ANALYTICS 270,000 words written 57% of usage on top every minute; 10,000 sites. 66,7% of traffic from outside US. A Lot More... 45% of products in beta ORKUT Apps, Calendar, Checkout, Docs & Spreadsheet, Groups, Picasa, 80 - 100 millions users. Reader, Talk, Translate, Webmaster Tools, Finance, Maps, CHROME BROWSER Earth, Toolbar, Chrome OS, Buzz, Doubleclick, Feedburner, Knol, 5,22% of web browsers Sites, Wave, App Engine, market share. OpenSocial, Alerts, Buzz, Latitude, Health... 11giovedì 18 marzo 2010
  • 12. BUSINESS MODEL “Search market share reflects past behaviour, but the ACSI is predictive of future consumer behaviour. Historically it has ACSI’s consumer satisfaction index: 2000- 2009 been a very accurate gauge of future consumer behaviour in other industries.” ⁓ Larry Freed American Customer Satisfaction Index (ACSI) 12giovedì 18 marzo 2010
  • 13. BUSINESS MODEL ‣ What can Google do with these services? Track users’ online behaviour to guarantee the best resources for advertisment. ‣ 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. 13giovedì 18 marzo 2010
  • 14. USER PROFILING According to a recent research, Google have access to 99,2% of the navigation statistic of each user 14giovedì 18 marzo 2010
  • 15. 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. 15giovedì 18 marzo 2010
  • 16. USER PROFILING LIBRARIES 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. 16giovedì 18 marzo 2010
  • 17. 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). 17giovedì 18 marzo 2010
  • 18. REFERENCES “Everything you always wanted to “Google Tops In Search Satisfaction know about Google…But were afraid According To Pre-Bing Survey” by to ask” by FaberNovel: <http:// Greg Sterling: <http:// everything-you-always-wanted-to- in-search-satisfaction-according-to- know-about-googlebut-were-afraid- pre-bing-survey-24080> to-ask-presentation>; “How Google makes money” by Manoj “FoolDNS vs. GoogleDNS” by Matteo Jasra: <http:// G.P. Flora: < 7982723>; how-google-makes-money.html> “Google” by Wikipedia.en: <http:// “The Beast File: Google” by>; <http:// “Google Business Model” by ericl368 v=R7yfV6RzE30&feature=player_embe on Slideshare: <http:// dded - >. googlebusmodelshared>; 18giovedì 18 marzo 2010