Google Launches Its First Google Store Chrome Zone

Google launched its first Google “Retail” store!

It is not where we could have expected ! Its not in the Silicon Valley where Google and Apple are. Its not in New York. But it is in London UK.

The launch itself is a very quiet launch!  No major hoopla, dance, music! CEO or key execs launching it and waking a game changer announcement.

In this Chrome Zone, one can tryout Google’s Chrome for now. May be other devices would be added later.

As per London’s Evening Standard, Arvind Desikan, Google UK’s head of consumer marketing at Google UK said: “People will be able to go in and have a play with the devices. We want to see whether people understand what this device is all about and monitor their reaction when they try it out,” Desikan is quoted in London’s Evening Standard as saying.

It seems that the current focus is on Chrome. May be to give much needed boost to the lackluster uptake of Chrome. According to Mr. Desikan, the company had “found anecdotally that when people tried the [Chromebook] and played with it, that made a huge difference to their understanding of what the Chromebook is all about”.

Is Google following the foot steps of Apple with its launch of the first retail Google store ? May be it is just experimenting. At least not doing what and how Apple did with its retail stores all over US and other countries. Remember that Apple launched one of the biggest store in China last year (Jul 2010).

Here is a pic of the huge lines outside the Apple Store:

Google, Apple, Facebook : Cancelling Projects for Better Focus

Big companies like Google, Facebook, Apple etc are always compelled with competition and thrive for innovation as well as grow by acquisition. However, like everyone else, these companies make mistake too. Some times costly mistakes by buying companies at hundreds of mollion valuations only to shelve them after an year or so.  Sometimes, the in-house initiatives are shelved too. It is better to take such hard decisions sooner than later. Such decisions lead to better focus and an ability to put resources on better-paying initiatives.
Here are some latest cancellations of projects from these companies:
1. Facebook Shutting Down Deals Service:
It seems that Deals are not making that much money. Is it a good news or bad news for Groupon? Definitely one less competition. However, the timing is bad. Groupon has filled IPO and is expecting a very high valuation. However, there are some concerns being expressed about its business model and its ability to sustain the growth and revenue. When Facebook backs out from the deals, it might be look as if it is validation that deals are not good for busines model and it is a bad omen for Groupon. Facebook followed a hybrid model to get deals. It sourced deals its own but also became a deals aggregator for select deals companies such as Gilt Groupe’s Gilt City; local deals service Home Run; restaurant website OpenTable; women-focused PopSugar City, and outdoor-oriented Zozi. It seems that the copons and deals market is maturing, the average weekly revenue from deals is going down. Thats why Yelp too is slowing down / getting out of daily deals.
2. Facebook also gave up on checkins by cancelling Facebook Places. This is of course a good news for Foursquare. However, Facebook is not giving up on locations. Instead of mimicing Foursquare, it would now allow users to tag everything with locations. Now, this approach would give distinction but would not compete with Foursquare. But it is a decision based on the usage of the places, resulting to re-strategizing on focus.
2. Apple Cancels iTunes TV Rentals – on.mash.to/prgRCV however this decision is based on Apple’s analysis of the current usage of iTune rentals vs buying. As per Apple, consumers prefer to buy than rent the music. So, Apple chopped down it. It may be getting some rental money, but it is always better to cut off project that does not pay appropriately.
3. While Facebook and Apple are cancelling these projects, Google does not want to be left behind too. Its new CEO is axing many projects like Slides, Aardvark, Flash Map API, Google desktop, Google Notebook, Sidewiki, Image Labeler, Google Pack, Google Web Security and so on. Never mind if you never heard some of these. May be that is the reason Google dropping them out. If you are interested in more details, visit Google’s official blog:  http://googleblog.blogspot.com/2011/09/fall-spring-clean.html
BTW this axing does not mean that Google is slowing down on acquisitions. In contrast, while Facebook, and Yelp slowed down on deals, Google this week quietly acquired Zave Networks for deals and coupons. Read http://www.simplyzesty.com/google/google-acquires-coupon-provider-sets-sights-on-social-commerce/
When you may spot acquired companies in the list, would you wonder whether these companies would have been successful if  they were left alone? Or it was better for founders to cash-in and move on?

Did ChromeBook recycled the idea of NetworkComputing(NIC)? Would it be sandwitched between Tablets and Laptops?

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Yesterday during GoogleIO 2011 conference, Sundar Pachai, a young SVP of Chrome from Google, announced ChromeBook as an innovative concept that no one in the industry does it today. Here is the advertisement covering the key salient features of the Google ChromeBook:

Google  demonstrated the power of Chrome browser and Web GL with high performing JavaScript that can run AngryBird smoothly on the box. Cool. The team demonstrated, a Very impressive 3D graphics! The most importantly Google announced a low cost subscription model for students and businesses. AT $29 for businesses as a complete package including repairs/replacement/maintenance (now a days its easy to replace than repair though) with three years contract seems to be a very good proposal for businesses, government agencies  and educational institutions. The businesses may need to pay more for Google Apps (about $50 per annum).

However, more I think about this, how innovative it is? I remember Larry Ellison had started Network Internet Computing in late 1990s-2000. Here is a news snippet

http://news.cnet.com/Ellison%27s-Net-computer-gets-a-pricey-accessory/2100-1040_3-251953.html May be he was ahead of time when the cost of LCDs, CPU and hard disks were high. He too may not have been that innovative in the idea itself. Much prior to NIC, during the time of Mainframe’s what we all used to get the dump terminals. Nothing on the terminal but everything from storage to applications were on the mainframe. Now, replace the terminals with smart terminal and mainframe with Internet-based servers and services, and you got this ChromeBook. Of course, we need to accommodate other progresses in related technologies like cloud computing, browsers etc. So, from the vision point of view, it is finally getting there! Network computing or Web computing.

However, the cost is not yet justified. For a while there has been announcements of below $100 laptops. In India, there is effort going on around Rs.5000 ($100) laptop. Last week, a geek in UK demonstrated ARM based low end device which can be used as network computer at $35. So, when this device does not have any hard disk, or other peripherals and OS is open-source, why does it have to be in the range of more than 499(wifi)-599(wireless)  dollars? If ChromeBook comes at $100 many would jump on it. May be in future it may happen. May be this is Google ChromeOS launch than the actual device launch just like how Android was launched via Nexus.

More than the cost factor, what I am seeing is that as of now Chromebook is not ready to replace laptops. Netbooks were supposed to be doing it. However, we have seen in 2010 than iPad just dislodged the Netbooks and it is on the verge of dislodging Laptops. Two advantages mentioned by Sunil does not play well against tablets: 1. QUick boot up time (less than 7 seconds) 2. Very low power consumption(no need to carry charger). Fighting against PCs is tough but fighting against smartphones and tablets is more tougher especially because of various apps and related ecosystem that is built around it.

Moreover, in emerging countries, general consumers may just by-pass laptop generation and get on to mobile computing using next generation smartphones loaded with communication, sharing, collaborating and office apps. On the upper side, those who needs more sophisticated personal compters, they can use Laptops. In that case, it may happen that ChromeBook may get sandwiched between tablets/ smartphones and upper end laptops specifically Mac Book Pro Air.

At one end, Google launched a very open hardware initiative that would widely open up potential of Android devices for close integration to home computing and beyond. On other end, we see this Web only device. Yes, google has resources to bait on both, it is consumer who can decide which can win. However, it is still evident that Google has difficulties in answering differentiation and why one should use ChromeBook instead of tablets.

This dilemma is evident from following interview:

Of course, with Google’s persuasion, this won’t be non-starter. Definitely it can handle some pain-points of IT departments of access, maintenance and security as long as all that needs to be there is available on web and does not need any installs. May be there could be very serialized flavors of such device: Facebook Computer! Any way, for many it is becoming ubiquitous to internet. Just like once AOL was there for many. Of course, without continuous innovation and adding values to the consumers, such privileged status would not  exist forever for Facebook or anyone for that matter!

Addendum:

Another issue that I did not eloborate is about dependency on Chrome, openness of Chrome Web Store and finally embracing to Google. Another twitter, @Draymong, who commented on my comment on the HuffPost article on this matter, brought to my attention that I should propbably talk about it.

First, Chrome is great but as of now it is not the top browser from the consumer usage point of view. Many sites are not well tested for the compatability with Chrome.

Second, Chrome Web Store is not yet opened for other broswers and Google’s story about the openness of this aspect is still unclear.

Third, hooking on to ChromeBooks may also imply that embracing to Google’s roadmap and tight integration with Google’s ecosystem (which is great but every absoulute control has a negative side effect that may concern some businesses).

Its not that I am completely rejecting that there won’t be a market for this. But as of now it is not going to replace laptop/ PC market and would not outpace iPads/smartphones / tablets. Here are some markets where I do see potential: 1. Kiosks 2. Terminals at libraries, airport checkin, etc etc. 3. Monitoring solutions and dashboards 4. Internet cafes in under-developed countries 5. games console 5. Schools 6. Replacement for POS etc. 7. Government offices where data security is key and does not want access to local storage. etc. However, in almost all of these markets cost is the considering factor in the decision making. May be subscription model would work.

Anyway, there are usecases where it is absolutely useless eg. mobile users.. how can I use this on flight? of course, I need to own a laptop or tablet for the same 🙂 Even if I am not in plane, the wireless career’s reliability of service would pose an issue. What if careers start charging more and more per download size?

Anyway, I am yet to have hands on Google ChromeBooks. But I cannot pay and buy just for trying out. Having iPhone, iPad Mac Book Pro, windows Laptop, and multiple linux boxes, I am yet to have a pressing need to buy it. Of course, if you have it, I would like to borrow and try it out! 🙂

Google acquires semantic smartness

Googel acquired MetaWeb today. The MetaWeb is a semantic search infrastructure. MetaWeb also has FreeBase database that has about 12 million topics and entities that can be person, place, books, films, products, etc. Its like a wikipedia information however in a structured format and can be available for semantic search. The Freebase can be downloaded or access via APIs. As of now, Google would allow the continuation. However, any restrictions on usage / licensing changes would impact the applications based on the same. Anyway, it is clearly seen that Google is being pressured to provide more relevant searches and this is its attempt to acquire technology as well as talent in the field.

Is Google strategy shifting to Solutions and Content?

It is very interesting to see Google buying ITA Software (http://www.itasoftware.com). So far Google built technologies that are content agnostics and not in any of vertical domains. However, it seems that Google strategy is shifting to directly add solutions inverticals to arm itself against potential competition from Bing as well as vertical searches. Google integrated realtime search, social search, comparative shopping etc. Now, it is entering into the airlines and travels. Shopping, Music, travels, health, entertainment, celebrities, etc are the most popular usages for consumers. Are we going to see Google entering in all these popular domains?