“Google held its annual developer event, IO, which is a platform for lots of announcements. For me, the overall theme was that Google is a cloud and machine learning company, not a hardware or OS company, and the further we got from devices and the more into the cloud and into big data analysis the happier the presenters were. Beyond that, Google’s self-confident ambition to be the platform for everything is apparent – this is very obviously the new Microsoft.”
This time last year Apple paid $3bn to acquire a company called Beats that made overpriced headphones and ran an unsuccessful music-streaming business. This acquisition made Beats co-founder Dr Dre the first hip-hop billionaire at the same time as it baffled many observers of the industry. For example, Benedict Evans, a seasoned analyst, tweeted: “If you think Apple’s lost it, Beats deal is confirmation. If you don’t, it’s… perplexing. Few really convincing rationales.” This columnist was likewise puzzled. Apple normally designs and makes its own kit, and if it wanted to do headphones it would certainly do better than the Beats products. So the conclusion had to be that if Apple didn’t want Beats for the headphones, it had to be the music-streaming service that it craved.
And so it has proved. We have just discovered – in a roundabout way – just how much Apple wants to get into the streaming business…
YouTube turns ten this year. ArsTechnica has a nice post that reflects on its history and its significance.
The site has become so indispensable that it feels like a basic part of the Internet itself rather than a service that lives on top of it. YouTube is just the place to put videos, and it’s used by everyone from individuals to billion-dollar companies. It’s obvious to say, but YouTube revolutionized Web video. It made video uploading and playback almost as easy as uploading a picture, handled all the bandwidth costs, and it allowed anyone to embed those videos onto other sites.
The scale of YouTube gets more breathtaking every year. It has a billion users in 61 languages, and 12 days of video are uploaded to the site every minute—that’s almost 50 years of video every day. The site just continues growing. The number of hours watched on YouTube is up 50 percent from last year.
It’s easy to forget YouTube almost didn’t make it. Survival for the site was a near-constant battle in the early days. The company not only fought the bandwidth monster, but it faced an army of lawyers from various media companies that all wanted to shut the video service down. But thanks to cash backing from Google, the site was able to fend off the lawyers. And by staying at the forefront of Web and server technology, YouTube managed to serve videos to the entire Internet without being bankrupted by bandwidth bills…
To those of us who follow these things, the most interesting thing about Thursday’s announcement is the way it highlights the radical differences that are emerging between European and American attitudes to internet giants. The Wall Street Journal recently revealed that the US Federal Trade Commission had investigated similar claims about Google’s abuse of monopoly power in 2012 and that some of the agency’s staff had recommended charging the company with violating antitrust (unfair competition) laws. But in the end, the FTC backed off.
Now it turns out that its staff had been in regular communication with the European commission’s investigators in Brussels, which means that the Europeans knew what the Americans knew about Google’s activities. But the commission has acted, whereas the FTC did not. Why?
Someone once observed that the difference between Tony Blair and Margaret Thatcher was that whereas Thatcher believed that she was always right, Blair believed not only that he was right but also that he was good. Visitors to the big technology companies in California come away with the feeling that they have been talking to tech-savvy analogues of Blair. They are fired with a zealous conviction that they are doing great stuff for the world, and proud of the fact that they work insanely hard in the furtherance of that goal. The fact that they are richly rewarded for their dedication is, one is given to believe, incidental.
The guys (and they are mostly guys) who manage these good folk are properly respectful of their high-IQ charges. Chief among them is Eric Schmidt, the executive chairman of Google, and a man who takes his responsibilities seriously. So seriously, in fact, that he co-authored a book with his colleague Jonathan Rosenberg on the care and maintenance of these precious beings. Dr Schmidt objects to the demeaning term – “knowledge workers” – that economists have devised for them. Google employees, he tells us, are much, much more impressive than mere knowledge workers: they are “smart creatives”.
In the opinion of their chairman, these wunderkinder are very special indeed…
Bill Gates once said that the only technology company that reminded him of Microsoft in its early days was… Google. Thanks to one of those delicious ironies in which capitalism excels, guess which company Google now reminds people of? Answer: Microsoft in its current dotage. Gates’s creation was once even more dominant in the industry than Google is now. It had three core products – the Windows operating system, Office and Windows Server – which were licences to print money. Microsoft had huge revenues that just rolled in every quarter, just as Google’s advertising revenues do today, and on the back of them built a huge 128,000 employee company. But, cushioned by its money-pump, it failed to innovate and, in particular, failed to address the decline of the desktop PC and the rise of mobile computing.
Despite Google’s self-image of an ultra-agile, young company, in fact it’s become a 55,000-employee monster, which is what is leading some people to see parallels with Microsoft…