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I am curious why google dabbles in all these strange projects removed from their core business, which seems to be organizing the worlds information and making s

I am curious why google dabbles in all these strange projects removed from their core business, which seems to be organizing the worlds information and making some money off that. are these merely hobbies of eccentric, rich founders? On the other hand I am glad somebody is pouring money into fundamental research. The government has limited funds. Many big companies that formally had big R&D cutback during downsizings.

Hortinstein 11y ago
Google is a machine learning company. Knowing about how people use their phone (Android), Computer (ChromeOS), etc a self driving car gives them more and more data to refine and expand their algorithms. At the same token it is because they have these vast troves of data and some of the best machine learning scientists in the word, they are suited to do this type of research. Another thing to think about is that if we are not distracted by the commute we will spend more time using Google services.
- bane 11y ago
  (note: this is supposed to be pseudo-tongue-in-cheek-back-of-the-envelope math) Let's say they invest...I dunno $300m in developing this technology (completely made-up number) - The average commute time in the U.S. is ~30 minutes...or 1 hour per day. I don't know what it is globally, but for fun we'll assume it's the same for everybody on the planet. - Google made $66billion in 2014 (or about $9.43 per person on the planet, assuming 7billion people) - Assume most people are awake 16 hours during a day. - However, if people are stuck driving for 1 hour out of those 16, that's only 15 hours they can build revenue for google. - This means google is generating about $.63 per available waking hour per person. - 1 more available hour is $.63*7billion = a possible "new" market of $4.4billion/year assuming every person This would pay back the R&D costs handsomely + tons of profit in the first year if google can get everybody to switch all at once. Even if it takes a decade or two to switch humanity to self-driving cars, it would still pay for itself quickly.
rubicon33 11y ago
Innovation is one way to protect your business from failure. Relying on a single business model, for decades, naively assumes that society will always want, or need, your product or service. I tip my hat to Google, for attempting to stay ahead of the curve.
danso 11y ago
Their core mission is to organize the world's data. They've organized geospatial and road infrastructure records on their way to building out Google maps. They have traffic patterns based on Android GPS tracking, as well as via such venues as Waze and Uber. And they have a huge trove of visual data and algorithms derived from core search and working with images. While they may not be a traditional robotics company, their approach to this seems fundamentally guided by their expertise in data infrastructure, analysis, and AI algorithms...all of which were essential to their core mission. Also, it helps that they were very profitable in their core product, allowing them to expand in such a fashion.
fizzbatter 11y ago
I always assume it's about gathering data. I am probably completely wrong, but frankly i feel like every large decision i've seen from Google comes down to 2 core concepts: 1. Enable more people to use your service 2. Create devices that can gather more data The thing is, a ton of device types can fit into one of these schemes. Phones for example, both let people use your service, as well as gather a ton of data. As we increase the technology in phones, they may even be mapping the environment. Likewise, these self-driving cars are able to exploit much of Google's current offerings, as well as contribute mapping of a near limitless amount of roads/etc. If Google can pull far ahead in the technology they can become the self-driving service. Even if they don't create the cars but instead lease the technology to normal makers, Google now has constantly updating maps, traffic patterns, routes, building changes, etcetc. Sure, Google made a car, but i don't think they car in the slightest about the car itself. They need to push to improve the technology and legislation as fast as they are able - everything else, people and car manufactures, will catchup eventually.
agumonkey 11y ago
Some people joked about the fact that selfdriving cars could be continuous Google Maps scanner in disguise. But back to business, every company will face crisis at one point, better explore alternatives while you can.
- lozf 11y ago
  Google might also consider what else they can suggest to the in car captive audience that they know all about. Imagine this scenario: Google Now - In car edition: "Since we have plenty of time before your appointment, press 'accept' to stop at the showroom for those soft-furnishings you searched yesterday, and receive a credit towards this ride".
  - agumonkey 11y ago
    Indeed, it's a new information source pretty much untapped for now.
fweespeech 11y ago
> I am curious why google dabbles in all these strange projects removed from their core business, which seems to be organizing the worlds information and making some money off that. http://adage.com/article/digital/google-profit-misses-estimates-search-ad-prices-decline/292678/ http://adage.com/article/digital/google-profit-misses-estima... > Google hasn't posted an annual increase in the average cost-per-click since the third quarter of 2011. It hasn't posted a quarterly boost since the second quarter of that year. Both streaks remain intact. Their per-click margins aren't going up and there is a limit to what they can do in that situation to grow net revenue. So they are looking for new growth markets since the margins on their core business aren't really going to change substantially with new investment. http://en.wikipedia.org/wiki/Google_driverless_car http://en.wikipedia.org/wiki/Google_driverless_car Throwing small amounts of money at things like driverless cars is something they can control and will likely give them the first mover advantage in a new market. They take over and become the "Microsoft of Driverless Cars" and they've got a huuuuuuuuuuuge new profit center. If not, they blew through a bit of cash. They have plenty of cash.

Hortinstein 11y ago

Google is a machine learning company. Knowing about how people use their phone (Android), Computer (ChromeOS), etc a self driving car gives them more and more data to refine and expand their algorithms. At the same token it is because they have these vast troves of data and some of the best machine learning scientists in the word, they are suited to do this type of research. Another thing to think about is that if we are not distracted by the commute we will spend more time using Google services.

bane 11y ago
(note: this is supposed to be pseudo-tongue-in-cheek-back-of-the-envelope math) Let's say they invest...I dunno $300m in developing this technology (completely made-up number) - The average commute time in the U.S. is ~30 minutes...or 1 hour per day. I don't know what it is globally, but for fun we'll assume it's the same for everybody on the planet. - Google made $66billion in 2014 (or about $9.43 per person on the planet, assuming 7billion people) - Assume most people are awake 16 hours during a day. - However, if people are stuck driving for 1 hour out of those 16, that's only 15 hours they can build revenue for google. - This means google is generating about $.63 per available waking hour per person. - 1 more available hour is $.63*7billion = a possible "new" market of $4.4billion/year assuming every person This would pay back the R&D costs handsomely + tons of profit in the first year if google can get everybody to switch all at once. Even if it takes a decade or two to switch humanity to self-driving cars, it would still pay for itself quickly.

rubicon33 11y ago

Innovation is one way to protect your business from failure. Relying on a single business model, for decades, naively assumes that society will always want, or need, your product or service. I tip my hat to Google, for attempting to stay ahead of the curve.

danso 11y ago

Their core mission is to organize the world's data. They've organized geospatial and road infrastructure records on their way to building out Google maps. They have traffic patterns based on Android GPS tracking, as well as via such venues as Waze and Uber. And they have a huge trove of visual data and algorithms derived from core search and working with images. While they may not be a traditional robotics company, their approach to this seems fundamentally guided by their expertise in data infrastructure, analysis, and AI algorithms...all of which were essential to their core mission. Also, it helps that they were very profitable in their core product, allowing them to expand in such a fashion.

fizzbatter 11y ago

I always assume it's about gathering data. I am probably completely wrong, but frankly i feel like every large decision i've seen from Google comes down to 2 core concepts: 1. Enable more people to use your service 2. Create devices that can gather more data The thing is, a ton of device types can fit into one of these schemes. Phones for example, both let people use your service, as well as gather a ton of data. As we increase the technology in phones, they may even be mapping the environment. Likewise, these self-driving cars are able to exploit much of Google's current offerings, as well as contribute mapping of a near limitless amount of roads/etc. If Google can pull far ahead in the technology they can become the self-driving service. Even if they don't create the cars but instead lease the technology to normal makers, Google now has constantly updating maps, traffic patterns, routes, building changes, etcetc. Sure, Google made a car, but i don't think they car in the slightest about the car itself. They need to push to improve the technology and legislation as fast as they are able - everything else, people and car manufactures, will catchup eventually.

agumonkey 11y ago

Some people joked about the fact that selfdriving cars could be continuous Google Maps scanner in disguise. But back to business, every company will face crisis at one point, better explore alternatives while you can.

lozf 11y ago
Google might also consider what else they can suggest to the in car captive audience that they know all about. Imagine this scenario: Google Now - In car edition: "Since we have plenty of time before your appointment, press 'accept' to stop at the showroom for those soft-furnishings you searched yesterday, and receive a credit towards this ride".
- agumonkey 11y ago
  Indeed, it's a new information source pretty much untapped for now.

fweespeech 11y ago

> I am curious why google dabbles in all these strange projects removed from their core business, which seems to be organizing the worlds information and making some money off that. http://adage.com/article/digital/google-profit-misses-estimates-search-ad-prices-decline/292678/ http://adage.com/article/digital/google-profit-misses-estima... > Google hasn't posted an annual increase in the average cost-per-click since the third quarter of 2011. It hasn't posted a quarterly boost since the second quarter of that year. Both streaks remain intact. Their per-click margins aren't going up and there is a limit to what they can do in that situation to grow net revenue. So they are looking for new growth markets since the margins on their core business aren't really going to change substantially with new investment. http://en.wikipedia.org/wiki/Google_driverless_car http://en.wikipedia.org/wiki/Google_driverless_car Throwing small amounts of money at things like driverless cars is something they can control and will likely give them the first mover advantage in a new market. They take over and become the "Microsoft of Driverless Cars" and they've got a huuuuuuuuuuuge new profit center. If not, they blew through a bit of cash. They have plenty of cash.