Google's 5 biggest fails

By | September 22, 2011, 10:10am PDT

Summary: Forget Google’s Senate hearings: our coin-op Congress can’t find the cloakroom door unless a lobbyist greases the way. Look back on the once-great Google in 10 years and these will be its greatest failures.

Not evil, just dumb
Google has an effective monopoly on search and search-based advertising. Which is fine as long as they obey the rules Microsoft so painlessly flouted while crushing Netscape.

Search benefits from massive scale. Websites benefit from fewer robots crawling the web. Search is a natural monopoly.

Despite whining from Nextag - I usually get better shopping results from Bing or Google - and blockhead former Senator Santorum - why should Google protect you from outrage you generated? - Google seems to take its top dog role seriously. Companies attacked by Google - airline search is the latest - are welcome to their hurt feelings, but if Google wins by offering better service that’s the free market.

But they’ve been dumb enough to make them the Yahoo of 2021. Here’s the list:

  • 5) Failure to buy Sun and/or Kodak. Their patents alone would now be worth north of $20 billion to Google - and would have cost less than $10B. They’d have enterprise and consumer products to leverage as well.
  • 4) Failure to embrace human-centered design. Their simple-minded A/B testing approach to web design is the web equivalent of focus groups. And focus groups can’t tell you what they want until they see it. Prime example: Google TV vs YouTube, a $1.6 billion mistake because Google PhDs couldn’t figure out what regular folks want. Oh, and Wave. Huh?
  • 3) Failure to understand that most early Google employees - founders included - weren’t capable of handling a global corporation. Will Larry Page be the Jerry Yang of Google? I hope not, but the omens aren’t good.
  • 2) Failure to control intellectual property rights to Android. Sure, software patents are often dumb. But they are the law and companies have to deal with that. Schmidt et. al. didn’t - another multi-billion dollar mistake.
  • 1) Choosing to compete with Apple. Android was a panic response to the 1st iPhone. Schmidt should have known that smart phones weren’t a core competency. As an Apple board member Schmidt could have cut a deal with Apple that would play to both company’s strengths: Apple in consumer product design; and Google in Internet-scale infrastructure and advertising. But no-o-o! Total cost to Google: over $10B.

The Storage Bits take
Eric and Larry have left Google in a precarious position that will cost billions to fix, if it can be. How many billions? Add up the Moto acquisition and the billions that Google will pay Oracle and you have a start.

Apple is also suing Motorola for core Android tech that Google’s Andy Rubin may have learned as an Apple engineer. Apple doesn’t always license patents, which could mean a hard reset for Google’s mobile ambitions.

Google’s early idealism and good works have been waylaid by abysmal management. Creative destruction - YES! Sloppy self-destruction - sad.

Comments welcome, of course. I switched to Bing for search early this year. For more on Google’s potential liability to Oracle, check out FOSS patents blog.

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Robin Harris has been messing with computers for over 30 years and selling and marketing data storage for over 20 in companies large and small.

Disclosure

Robin Harris

Robin Harris is a president of TechnoQWAN, a consulting and analyst firm in northern Arizona. He also writes StorageMojo.com, a blog which accepts advertising from companies in the storage industry, and has a 25 year history with IT vendors. He has many industry contacts, many of whom are friends and all of whom he has opinions about. Robin has relationships with many companies in the technology industry. Every company he writes about may have sought to influence his opinion through carefully-crafted marketing messages and self-serving white papers, gifts ranging from desk calendars, t-shirts, lunches and trips as well as analyst or consulting assignments. He also invests in some technology companies. He may accept payment for services in stock as well. Robin discloses financial investments in or client relationships with companies named in Storage Bits. To help readers sort out the gold from the dross in his writings, Robin tries to communicate his reasons as clearly as he can. If you agree, you are intelligent and discerning. If you disagree, well, you disagree. In all cases, Robin encourages readers to subject everything they read, see or hear on the internet or from politicians to some simple questions: * What assumptions are implicit in the world view and judgments of the author? * What, if any, is the factual basis for the opinions the author expresses? * Is it reasonable, logical and clear? Your critical faculties: use ‘em or lose ‘em!

Biography

Robin Harris

Harris has been messing with computers for over 30 years and selling and marketing data storage for over 20 in companies large and small. He introduced a couple of multi-billion dollar storage products (DLT, the first Fibre Channel array) to market, as well as a many smaller ones. Earlier he spent 10 years marketing servers and networks. After leaving corporate life he founded TechnoQWAN, a consulting and analyst firm. He also developed StorageMojo into one of the top storage industry blogs.

Robin writes, consults, coaches and lives among the mountains of northern Arizona.

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I didn't mention their AT "conviction".
xuniL_z 26th Sep
I talked about your "netscape" comment which is highly debatable.
It's funny, Netscape had a mascot called "Mozilla" which was short for Mosaic KILLER and used to flaunt how they had CRUSHED Mosaic. What goes around comes around, eh Robin? It's appropriate that name was retained by the inheriting party, I guess.

And I admit to a typo, I meant to say 1990s style burn because that is when your type of MS slander started to become widely used.

So I'm not sure which facts you are talking about getting straight?
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RE: Google's 5 biggest fails
Carl.Lee4@... 22nd Sep
I agree, especially about point 4, human centered design. I used, past tense, IGoogle from when it was beta. Loved it. Then one day I logged on There was a one inch strip of wasted space on the left and my page was squished to the right. It was ugly, hard to read, and immutable.
I joined my voice to the choir of people who dared to ask for the ability to turn it off. I plead for a few weeks for change then returned to Yahoo. People ask me what I think about Google +, I don't nor will ever know. I don't use Google for anything. If I find that something I use is under the Google umbrella I find a replacement. They will not make revenue from my searches.
As much as I hate Bing, I would use it before crawling back.
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RE: Google's 5 biggest fails
Bakabaka 22nd Sep
@Carl.Lee4@...

yet google is still one of the biggest players with their search engine and android OS. Sure there are failures. Chrome OS is going to be another one.

Google TV and Google+ should get a name change. Even G-vid or Googbook sound better thant it does now.
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RE: Google's 5 biggest fails
pupkin_z 22nd Sep
@Bakabaka do you mean goobook?
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@Carl.Lee4@...
Possible alternative suggestion if you really hate bing (search engine) and Google (company). Be careful not to click on the ads.
one?
First, Netscape and MS came to a settlement. That's normal business, not an admission of guilt and Google has Bulldozed so many companies large and small, with their army of lawyers that dwarfs MS, so please stop with any kind of "It fair on the free market" BS about Google.
They use thier "desktop" to sell their own products. Let me know when you see a copy of windows that has adverts on the desktop.
Google and Apple both have notorious records of cheating and hurting other companies, or putting others out of business. They ahve both sent their army of lawyers out to kill off countless small businesses that had names even similar to their branding and who had those names first.
MS was about marketshare, which is what a comany is supposed to be about. Google and Apple are about doing anything for money. Anything, legal or not.
Get a grip and lose the old 1999s MS burns, please. You seem very child-like not letting go of your personal grudges.
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Contributr
RE: Google's 5 biggest fails
R Harris 23rd Sep
@xuniL_z
Get your facts straight: Microsoft's anti-trust conviction was upheld by the court of appeals. They didn't have to admit guilt: they were found guilty. The DOJ and Microsoft settled in 2001.
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I talked about your "netscape" comment which is highly debatable.
It's funny, Netscape had a mascot called "Mozilla" which was short for Mosaic KILLER and used to flaunt how they had CRUSHED Mosaic. What goes around comes around, eh Robin? It's appropriate that name was retained by the inheriting party, I guess.

And I admit to a typo, I meant to say 1990s style burn because that is when your type of MS slander started to become widely used.

So I'm not sure which facts you are talking about getting straight?
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Number 5 and Number 1 seem to be complete contradictions. If they followed number 1 then they'd have had no reason to follow number 5. Frankly, I think they've done very well competing with Apple. Not necessarily in the tablet market, but on the smartphone side they've done amazingly well considering they started at nothing.
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Contributr
RE: Google's 5 biggest fails
R Harris 22nd Sep
@Ididar
Point taken. If they HAD to go after smart phones then #5 makes sense. If they hadn't then no harm, no foul.

But they did, and totally fouled things up in the process by not doing what was needed.
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RE: Google's 5 biggest fails
Michael Alan Goff 22nd Sep
@R Harris

I think we're all richer for them not following #1.

Imagine if the iPhone had no competition.

You are correct about #5, though. Imagine if they would have bought them instead of Motorola.
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RE: Google's 5 biggest fails
linux for me 23rd Sep
@R Harris

No reason to buy Sun, Java was GPL'ed and released in 2006/2007. Waste of money to buy something already available for free.

As for other products, at least they try new products for consumers, rather than sitting on only one. Besides, what happened to Zune and Kin??? Do you think that Google is the only company that had a failure or two?

Time to get real Robin.
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RE: Google's 5 biggest fails
daniejam10 22nd Sep
@Ididar

But they arent doing well..

Selling phones is different than making money, MS make more money from Android than they do.....

$10b down drain for motorola, they bought it for patents, when Apple and MS are already suing them, meaning they still have much better portfolios.

They will probably lose close to $10b to Oracle.

Now show me where they made $20b from Android, not including development costs etc as well by the way.
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RE: Google's 5 biggest fails
CowLauncher 22nd Sep
@daniejam10 dead on.
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RE: Google's 5 biggest fails
global.philosopher 22nd Sep
@Ididar Buying SUN would have got them Java ownership + engineers, etc.
Buying Kodak would have got them some relavent patents.
Choosing to compete with Apple only pissed them off and now Apple will be less willing to support Google technologies. iPhone was a well thought out product and showed what good cooperation between two companies can achieve. Google have now shown the industry that they want more than to co-habitate with other companies. They want the whole market to themselves just like MS does. The if you can't buy 'em..then destroy 'em attitude is not a good long term business strategy because over time your competitors become too many. Why do companies flock to Android? Because they have all been burned by MS. Some time in the future the same will apply to Google.
Nope. Android was a panic response to MS getting WinMo domination. The iPhone came later.

I suspect Google will never show a dime of profit from Android but it is Larry's child (he purchased it without even talking to Brin or Schmidt) and he will do what it takes to see it take over.
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Contributr
RE: Google's 5 biggest fails
R Harris 22nd Sep
@Bruizer
The time line says otherwise: iPhone announced 1/07; shipped 6/07; Android announced 11/07. And it was a sketchy announcement suggesting it was rushed to market.
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RE: Google's 5 biggest fails
regsrini 22nd Sep
@R Harris
But if I remember correctly, Google had been planning Android since at least 2005 at least a year and a half before the world got a sniff of iPhone. That suggests that Google wanted to get into the mobile game much earlier and compete with Windows Mobile rather than Apple.
You may be right though about the fact that they rushed it to the market.
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RE: Google's 5 biggest fails
global.philosopher Updated - 22nd Sep
@Bruizer Theres no doubt it was a panicked response that will cost them in the end. They wanted to get Android out as quickly as possible but to do that they had to make it enticing for OEM's to pick up....so what did they do...they basically released it for free. All the value in the Android world is being tangibly realised by the OEM's. Google are getting next to nothing for their efforts and now what little they are getting is being replaced by the likes of Amazon. So what did Google do..they panicked again and spent two years of accumulated profits in buying Motorola. Not only is Moto a dud OEM but now Google are putting all their licensees off side (HTC, etc). Every OEM know they are only one or two bad quarters away from closing shop...they know they have to differentiate and diversify. Google buying Moto has given WinMo 7, Bada, Baidu,, etc a leg up which will make Android even less profitable for Google.
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I agree with most of your points
Davewrite Updated - 22nd Sep
Google made many mistakes especially with Android.
they make almost no money with it, maybe a billion a year before expenses like R&D and support.
(in comparison Apple must make 50 b or more a year from mobile). And Google wants to spend 12.5 b on Motorola and might have to pay billions to Oracle etc.

If Google had stayed with apple with Schmidt still on Apple's board, Google would have an inside track to Apple and tie their software closer to apple. Android could have been held back as a threat so that Apple doesn't go Bing (many Android OEMs have gone Bing, Yahoo , Bidu and Google makes no money off them). That would have been easy money.

Since Android release Google's stock price has gone nowhere, Apple's has more than tripled. From a smaller company than Google Apple's marketcap is now twice Google's.
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apple and microsoft doesn't play fair that's why they're dragging google down. they didn't realize that a search engine would then become a big competitor especially in the smartphone business. i like google every bit of it.
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RE: Google's 5 biggest fails
dave95. 22nd Sep
I agree. Google seem to be spending more on correcting mistakes it made. Correcting mistakes it made with Android in its haste to becoming #1 in market share on phones. Has it affected Apple and their model of providing the best experience, on owning the #1 phone, and on collecting the most in revenue? Nope.
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RE: Google's 5 biggest fails
dimonic 22nd Sep
Everyone is assuming they will lose to Oracle. They had Sun's BLESSING to implement Java on the Android. There is no way Ellison can retract that. Perhaps you should meet Larry Ellison one day (and perhaps compare him to L Page). If you want evil/ego personified, then Ellison is your man.
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RE: Google's 5 biggest fails
R Harris 22nd Sep
@dimonic
They've already lost. The question now is how much will it cost. Counting MMI it's $12B and that is before paying Oracle and Apple. Billions more, no doubt.
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RE: Google's 5 biggest fails
global.philosopher 22nd Sep
@R Harris
Correct....Google and Oracle are only haggling about damagaes which means Google know they infringed. Rumour has it Google only wants to pay $100 million but Oracle wants $2 billion. Also Oracle apparently wants about $15-$20 per handset. As the copyright holder you can charge what you like. Its not like its Googles only choice. What they should do is dump Android and take up Meego which is copyright and patent free. Then everyone is happy.
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RE: Google's 5 biggest fails
global.philosopher 22nd Sep
@dimonic
If someone come to me and talks about using my technology in the future then they willget my blessing too. But that does not mean you get to use it for free. Basically I would say...when you are ready come back and speak to me about licensing costs.
Google new they had to pay a license...they just chose not to pay hoping that Sun's mismanagement wouldn't bother to chase up royalties once they figured it out. The only problem is that Sun is now run by Oracle who is management as a business a lot better. If Google continue managing their company like Sun did then Oracle will most likely own them one day too.
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RE: Google's 5 biggest fails
iluvmsft 22nd Sep
Android is a mistake?
Competing against Apple is a failure?
Common.
Looks like this article was written by an Apple fanboy.
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So now monopolies are okay?
2drinks 22nd Sep
As long as its Google? This is the dumbest thing I've heard on zdnet in a day or two (that's a pretty high bar). So, for instance, if Google drives every other shopping site out of business, or very nearly so, and then proceeds to start sucking at shopping search (hmm...sound familiar? Internet Explorer anyone?), that's ok with everyone? Because as we saw in browsers, it takes years to recover from that kind of garbage and in the mean time you and (what is infinitely more tragic) I have to deal with the suckage. I'm not generally for government intervention in business, but when you have an obvious monopoly like Google and they are abusing their position (and they ARE, as you pointed out) someone needs to right the scales or we all suffer. Because no matter how good a monopoly's products are when they start out, inevitably they take a turn for the suck.
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RE: Google's 5 biggest fails
R Harris 23rd Sep
@2drinks
Monopolies are legal in the US. What isn't legal is using your monopoly to crush competition in other markets - which is what got Microsoft in trouble.

When I put a product name in Google or Bing I usually see Nextag in the 1st 10 results. But after clicking on Nextag a few times I realized that their results often don't find the bargain prices. So I stopped clicking on Nextag. Free market, consumer choice.
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RE: Google's 5 biggest fails
WilliamKerr356 Updated - 22nd Sep
heir simple-minded A/B testing approach to web design is the web equivalent of focus groups. And focus groups cant tell you what they want until they see it. Prime example: Google TV vs YouTube, a $1.6 billion mistake because Google PhDs couldnt figure out what regular folks want. Oh, and Wave
I just got a $ 829.99 iPd2 for only $ 103.37 and my mom got a $ 1498.99 HDTV for only $ 251.92, they are both coming with USPS tomorrow. I would be an id!ot to ever pay full retil prcs at placs like Wlmrt or Bstbuy. I sold a 37" HDTV to my boss for $ 600 that I only paid $ 78.24 for. I use http://v.gd/yQE5g9
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RE: Google's 5 biggest fails
mypascal2000@... 22nd Sep
... haha, this article is funny. and ridiculous! ... and all that at the same time.
Anyways, without even trying to explain, google rocks. Love my android, my G+, my Crome, not to talk about my maps, my email, ...
I had nothing so good like this from any other company.
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ixquick
Nnighthawk 22nd Sep
I object to being 'googled': indexed, profiled, cataloged and copied...
my private life is MINE, not public domain.
use https://ixquick.com for secure searching.
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RE: Google's 5 biggest fails
bannedagain 22nd Sep
What is ironic is that Google's largest revenue stream is protected by software patents and they won't let those go, in spite of all their hypocritical chest beating on the subject.
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They do NOT have a monopoly.
razorsyntax 22nd Sep
There's Bing, Webcrawler, Yahoo, Ask.com, duckduckgo, lycos.com, etc . . .

Not quite sure how Google is a monopoly.

As for this anti-trust suit . . . it's stupid. The government has NO right to get involved in the affairs of private industry or citizens.
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RE: Google's 5 biggest fails
R Harris 23rd Sep
@razorsyntax
What anti-trust suit? You mean the Senate hearings? Way-y different.

BTW, the government has every right to get involved in the affairs of private industry or citizens when either breaks the law. Read the preamble to the Constitution for a quick refresher:


We the people of the United States, in order to form a more perfect union, establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity, do ordain and establish this Constitution for the United States of America.


Promoting the general welfare covers a lot of ground.
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RE: Google's 5 biggest fails
pjtmgt@... 22nd Sep
Don't count your chickens before they hatch.
Oracle might have one big item to add.
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the cost of success
belli_bettens@... 23rd Sep
I believe that with success comes some failure. They just released many many products in the past (remember google labs?) hoping that some of them might stick. And it did. For all they knew, gmail would not be a big success and wave would. You just don't know until you try it. Doesn't seem such a bad strategy to me.
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Come on now
slinky317 23rd Sep
I love how this article acts like Google failed at taking on Apple, when in reality Android has far surpassed iOS and now has the largest smart phone market share in the US (and maybe globally IIRC).
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google makes almost no money off Android.
Davewrite Updated - 25th Sep
@slinky317

in fact they are probably losing money and for sure if you add the 12.5 billion for Motorola. (Apple makes more off mobile in one year than Google will with Android in 50 years)

google probably makes more off iOS than Android (as web searches from iOS is way higher than Android)

many android phones are locked to Bing, Yahoo, Bidu from which google makes zero. Plus some Android phones like OMS in china although counted in stats are so far removed from stock android they don't even run Android apps. Plenty of third party android app markets as well from which Google makes zero as well.

Android's failure for Google is easily marked by the stock price flatlining for 4 years since Android's release - little extra earnings from android to offset huge costs in R&D, staff hires etc. Apple's stock has tripled since Android. When Android was introduced Google was a LARGER company than Apple in marketcap, now with 4 years of android and iOS Apple is TWICE Google's size.

AND Android is NOT larger than iOS in marketshare
from last official statements from both companies: Android activations 135 million, iOS 222 million.
Android is only larger if you count smartphones and leave out iPad, iPod Touch.

(I own both Apple and Google stock).
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RE: Google's 5 biggest fails
CobraA1 24th Sep
"5) Failure to buy Sun and/or Kodak."

Umm, what? Some mumbo-jumbo about money and patents? This is a failure somehow?

The world isn't just about money, and I sincerely hope you're not turning into somebody who loses sight of everything else just because you have dollar signs on your eyes.

"Failure to understand that most early Google employees - founders included - weren???t capable of handling a global corporation."

They seem to be doing fine so far. Like it or not, they are global, and that doesn't seem to be hurting them at all. Sure, they've made mistakes, but who doesn't? The gains far exceed the losses.

"Choosing to compete with Apple."

I'd rather they compete, actually. Competition is good, even if Apple is still on top. The cost to consumers of a monopoly would be far greater than the $10B cost to Google.

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