Saturday, September 20, 2008

Google's Investments in its Core Business

Google continues to invest heavily in its core business, organically and by acquiring businesses.

Google's 70-20-10 model dictates that 70% of the company's time and resources will be devoted to the core business. A reading of Google's open job listings provides further evidence of this priority: Google continues to recruit people to build its advertising business, to improve and further popularize every aspect of its search user experience, and to improve its technology.

Many of Google's acquisitions helped to build or reinforce the three dimensions of Google's core business. For example: Doubleclick, Sprinks, and Applied Semantics reinforced advertising. Several smaller acquisitions (Outride, Kaltix) provided some contribution to search--although this aspect of Google's business was almost entirely developed internally. And acquisitions such as YouTube added new technology capabilities, including privileged access to a tremendous library of video.

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