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I've found that Google likes users that are engaged with their products, whether it's search, Gmail, or any of the other tons of products. Search is only valua

by jedc 16y ago

I've found that Google likes users that are engaged with their products, whether it's search, Gmail, or any of the other tons of products. Search is only valuable for Google because a lot of people use it. Surely Gmail is more valuable the more other people use it? (Even if it's not in the same way.) I mean, that's the whole point of the Google Apps Marketplace: http://www.google.com/enterprise/marketplace/ http://www.google.com/enterprise/marketplace/

mikeryan 16y ago
Search and Gmail are only valuable because people use it and because they sell ads. It takes both users and ads - one without the other is useless.
- jedc 16y ago
  Please see my other comment here: http://news.ycombinator.com/item?id=1628381 http://news.ycombinator.com/item?id=1628381 In a nutshell, Gmail business model != Google Search business model. Therefore, the relative importance of revenue streams is different.
  - mikeryan 16y ago
    It seems to me that if you're okay replacing ads on Gmail you'd be okay with replacing ads on Search as well? Or are you saying you're okay with replacing ads on Gmail - but on Search replacing ads would be wrong? This seems like a slippery slope you're treading.
    - jedc 16y ago
      Like I said, I see the two business models very differently. My personal theory is that there is a LOT more potential revenue for Gmail in the enterprise. (Google tried and largely failed in the internal enterprise search market.) Each small business of 20 people that pays for Premier service makes Google $1000. (And that's $1000/year recurring revenue.) Those same people would have to click on a LOT, LOT of ads (content/display ads, which earn much less money than search) to make the same amount of money through advertising. And there are hundreds of thousands of businesses world-wide that are potential Google Apps customers. Fundamentally, I see a LOT more potential revenue for Gmail through enterprise deployment. If they have to sacrifice a small amount of ad revenue in order for users to use the tools they want to use as part of their job/life, then that's a tradeoff I'd be more than willing to make if I was in the shoes of a Gmail manager. The model for Google web search involves getting as many users to search on Google, and putting the most relevant ads possible next to the results. The enterprise aspects of the business model don't exist, and that's why Gmail business model != Google search business model.

by jedc 16y ago

mikeryan 16y ago

Search and Gmail are only valuable because people use it and because they sell ads. It takes both users and ads - one without the other is useless.

jedc 16y ago
Please see my other comment here: http://news.ycombinator.com/item?id=1628381 http://news.ycombinator.com/item?id=1628381 In a nutshell, Gmail business model != Google Search business model. Therefore, the relative importance of revenue streams is different.
- mikeryan 16y ago
  It seems to me that if you're okay replacing ads on Gmail you'd be okay with replacing ads on Search as well? Or are you saying you're okay with replacing ads on Gmail - but on Search replacing ads would be wrong? This seems like a slippery slope you're treading.
  - jedc 16y ago
    Like I said, I see the two business models very differently. My personal theory is that there is a LOT more potential revenue for Gmail in the enterprise. (Google tried and largely failed in the internal enterprise search market.) Each small business of 20 people that pays for Premier service makes Google $1000. (And that's $1000/year recurring revenue.) Those same people would have to click on a LOT, LOT of ads (content/display ads, which earn much less money than search) to make the same amount of money through advertising. And there are hundreds of thousands of businesses world-wide that are potential Google Apps customers. Fundamentally, I see a LOT more potential revenue for Gmail through enterprise deployment. If they have to sacrifice a small amount of ad revenue in order for users to use the tools they want to use as part of their job/life, then that's a tradeoff I'd be more than willing to make if I was in the shoes of a Gmail manager. The model for Google web search involves getting as many users to search on Google, and putting the most relevant ads possible next to the results. The enterprise aspects of the business model don't exist, and that's why Gmail business model != Google search business model.