November 13th, 2008
Worsening economy could actually help Google
Before the recent downturn of the economy, people wondered if Google would be affected negatively by such an incident. It was a valid question, since Google’s revenue is almost entirely in the hands of companies advertising spend, and it’s easy to speculate about what would happen to those budgets.
It’s impossible to say for sure how they will perform in upcoming quarters, but if the last one is any indication, slow-down isn’t going to be as drastic as it may be for other companies.
Ok, so it’s conceivable that Google will see less of an impact by these hard economic times compared to some, but I’ve got a feeling that they might even thrive if these hard times persist. That’s ridiculous right? How will a business like Google thrive in a worsening economy while most companies face layoffs and bankruptcy?
Advertising budgets aren’t going to increase, so what am I talking about? Well, think about all the companies around the world that are looking to cut costs. One major expense (and headache) for small, medium and large businesses are licensing fees for things like Microsoft Exchange, Share Point, Office, etc. As costs are being cut, these Microsoft products may well go on the chopping block with Google being the cheaper (or free) alternative.
I have a feeling that Google will be seeing a higher than expected adoption rate for Google Apps, stealing some of Microsoft’s enterprise juice while it’s at it. What do you think?
Garett Rogers is employed as a programmer for iQmetrix, which specializes in retail management software for the wireless industry.
See his full profile and disclosure of his industry affiliations.
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