Linux and Open Source

Steven J. Vaughan-Nichols & Paula Rooney

When Google is good ask why

By | May 21, 2010, 5:46am PDT

Summary: Google’s costs for transacting and moving data are so incredibly low that anything it does to raise demand is good for Google.

Google was good this week. It was very, very good to finally get rid of this overhang over fonts, and intellectual rights to them. Now Web pages can be prettier, or we can reach deep into the bag and make them practically unreadable.

But when Google is good, when it’s very, very good as it was this week, it pays for us to ask why. (That’s the logo for Google’s new font directory. Very clean, very nice. Just hope the good people at Scrabble don’t get upset over it.)

The easy answer is that it’s easy for Google to be good. Google’s costs for transacting and moving data are so incredibly low that anything it does to raise demand is good for Google. So it can afford this.

Another reason is that it pays for Google to be good. It pays in two ways:

  1. It increases goodwill, and that’s very important online. In a friction free world your reputation is everything. Journalists live that way because we’re ten a penny. But if you can get goodwill in the market, goodwill from your shareholders, and goodwill from policymakers at a cost of near zero, why wouldn’t you?
  2. It degrades competitors’ advantages. If you’ve been making a handsome living, doing little or no new work, from a patent monopoly on fonts or codecs, Google has just disadvantaged you. Google isn’t a software company, but most of its chief competitors are software companies. They’re gonna drown or we’re hosing ‘em out.

Despite all this being in Google’s best interests, despite it being to its advantage, I find it foolish and cynical to look these gift horses in the mouth. I think it’s better to see what lessons your business can learn from this.

  • It’s the infrastructure, stupid – Using Moore’s Law aggressively, driving out costs continuously, even when you’re the cost leader, is the best way to grow in the 21st century.
  • Reputation matters — When people believe you are not evil they are more likely to do business with you. All kinds of business. Including political business.
  • Success is a political process — One reason competitors have started attacking Google as evil is precisely because they now recognize this fact. But you can use this knowledge to your own advantage as well.

One thing Google’s strategy does is demonstrate there is more than one way to political success. Giving away what you can, what you can afford to give away, can be seen as just another strategy, alongside pressing opponents or attacking them.

It’s a bit like the movie Monsters Inc. Laughter draws more energy than fear.

My guess is Eric Schmidt sleeps better at night this way, too. The point is, in an open source world, you can emulate Google’s strategy and do very well by doing good.

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Topics

Dana Blankenhorn has been a business journalist for 30 years, a tech freelancer since 1983.

Disclosure

Dana Blankenhorn

Dana Blankenhorn has been a journalist, writer and part-time futurist for over 30 years.

At the present moment I run only a personal blog in addition to my ZDNet open source blog.

DanaBlankenhorn.Com has the subtitle The War Against Oil. In the past I have used it to write about political history, e-commerce, personal matters, some ideas related to open source, and The World of Always On, which is the idea of using sensors, motes and RFID to turn WiFi links into platforms for applications which live in the air.

My IRA account at Schwab holds a few tech shares, most notably some Intel and Applied Materials, but there are no open source companies in it. I don’t even own any CBS stock.

Biography

Dana Blankenhorn

Dana Blankenhorn has been a business journalist for nearly 25 years and has covered the online world professionally since 1985. He founded the Interactive Age Daily for CMP Media, and has written for the Chicago Tribune, Advertising Age's "NetMarketing" supplement, and dozens of other publications over the years.

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RE: When Google is good ask why
gorians Updated - 2nd Sep
If youve been making a handsome about it is bank that website attacked from the site support from any soldier site to the light home page is great living
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Wow
Narg 21st May 2010
Is this what the World is coming to, full untrusting thoughts of anyone? Put the aluminum foil back on your head and crawl under that rock!
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RE: When Google is good ask why
twaynesdomain 24th May 2010
@Narg Yes, the "world" has been coming to that for some time now. Does that really surprise you? I just fail to understand how you can make that comment based on anything in that article which, for a change, was well written but as usual thin of verifiable facts.
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RE: When Google is good ask why
gorians Updated - 2nd Sep
If youve been making a handsome about it is bank that website attacked from the site support from any soldier site to the light home page is great living
and it just keeps getting better and better at doing things right.

Apple, enjoy your success while it lasts, Google is going to get you.
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You may be right
itpro_z 21st May 2010
@OS Reload

From my point of view, Google and Apple are one and the same. Both want absolute control and mindless obedience. Both seem bent on world domination. Both have a rabid cult following.

I would sooner stop using computers altogether than submit to either of them.
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RE: When Google is good ask why
hawks5999 21st May 2010
@OS Reload Prediction: a future federal investigation will reveal that Schmidt and Jobs staged the whole rivalry thing between the two companies so that each could show they had "competition" to prevent trustbusters. Android and iAds are favors for the "competitor" to argue a competitive marketplace. The end goal of both companies and more specifically the CEOs is to eliminate their mutual enemy - Microsoft.
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RE: When Google is good ask why
lars626 21st May 2010
Sometimes corporations do the right thing because it is the right thing to do. Corporations are run by people. People can make positive choices.
If you make a mistake you plead guilty, apologize, fix it, and then then move on.

I wise old actor once said: "Trust, but verify".

The question I always have for the trolls out there is: What have You done to improve the situation? Complaining does not count.
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RE: When Google is good ask why
nanomartin 21st May 2010
@lars626
Fantastic man!
You couldn't said it better.

Agree happy
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Trust, but verify indeed
klumper Updated - 23rd May 2010
@lars626
The question I always have for the trolls out there is: What have You done to improve the situation? Complaining does not count.

Trust but verify, I'm with you there. But complaining matters likewise. Otherwise how does one challenge tacit complacency, especially in the corporate sphere? Or are you saying corporations as such don't listen, or even need to?

One shouldn't have to reinvent the wheel to matter or count.

The bigger question remains (and much like our federal martinets and their cadre of pencil pushers, and the albatross they keep chained around our collective necks): does anyone pay attention to mass dissatisfaction, and does anyone care?
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Google Is as Google Does
riemino 21st May 2010
Actions are what count. We have seen mostly positive ones from this company. Looking forward to all new future innovations from Google.
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Why is Google Good?
daengbo 22nd May 2010
Dana, I agree that Google's generosity is no Trojan horse. In fact,, they are quite transparent about what they do and why. The are an ad company -- an Internet ad company. Anything they can do to commoditize the entire process from producer to consumer makes the Internet more affordable and the market for ads grow.

Google also has a corporate culture where it actually believes that it's the best and can out-run others in the game, so it wants a level playing field in order to run faster and keep the company on its toes.

Google's quite forthcoming about all this, and their actions back up their words. No, it's not a philanthropist, but the outcome for most of the platform moves are good for everyone, even Google's competitors.
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Time to write "When Google is BAD!"
Gradius2 23rd May 2010
That's right!
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RE: When Google is good ask why
IKE:) 25th May 2010
Ladies, Gentlemen... please! We, the consumers cannot anymore trust large companies. For one, we can hardly contact them to give feedback, to criticize, to feel that there are living beings out there in the corporate world. The larger they get the more distant they get!
Secondly, Jobs, Schmidt and others must make shareholders happy, therefore almost anything goes, including scheming;-).

Just look at the oil-industry.

Any good leader is also a decent Chess-Player.
Get it?
Trust is a luxury we cannot afford anymore, when it comes to large corporations.
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RE: When Google is good ask why
efsane Updated - 25th Apr 2011
Well done! Thank you very much for professional templates and community edition
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