Google’s recent push into tablets and mobile, along with offering new search services such as Google Instant, are pushing up the company’s capital expenditures, which are slotted to grow almost 184 percent in 2010 compared to last year. Next year, that amount is going to go even higher. This spending is a good thing, because it allows Google to leverage its inherent advantage: infrastructure.
A few years ago, I noted in a post that infrastructure was Google’s key competitive advantage. It’s what allowed the company to innovate and outpace its rivals. It allowed the company to give us results faster than our broadband connections could offer, making us more subservient to its search in the process. In the end, we all forgot the directories and instead focused on the search-box as the start of our Internet journey. Today, Google is a gigantic, $7.3-billion-in-quarterly-sales business.
One thing Google knows: It needs to keep spending money on this infrastructure in order to stay competitive and current. The company recently introduced Google Instant, a new feature that allows you to get results even as you’re still typing the search term. It’s a service akin to the days when an Intel chip got multimedia extensions.
In many ways, Google Instant demonstrates the evolution of a product in order to keep up with times; today’s faster broadband means that the search results need to come up faster than one could type. More importantly, Google Instant is a search product optimized for a brave new world where the user interface is touch rather than keyboards, and devices aren’t your classic computer, but instead mobile and tablet-like.
One of the reasons Google was able to launch Google Instant is because it can afford to spend a lot of money on its infrastructure. During the third quarter of 2010, the company spent nearly $757 million, the highest amount since the first quarter of 2008, according to investment bank J.P. Morgan. (In comparison, Google spent a total of $810 million on capital expenditures in all of 2009.) In a conference call with Wall Street yesterday, Google VP Jonathan Rosenberg told the analyst community:
From a revenue standpoint, its impact has been very minimal; and from a resource standpoint, it’s actually pretty expensive. So why did we do it? Well, we believe from a user standpoint, Instant is outstanding and the data that we are seeing actually bears this out.
Google’s spending on capital expenditures (mostly on data centers) had been on a decline. That is about to change. According to J.P. Morgan, the company is going to spend $2.3 billion on capital expenses in 2010 versus $810 million last year. For next year, the investment bank is forecasting $3.2 billion in capital spending.
Some Wall Street analysts are going to view this increased spending and wring their hands. They’re idiots and short-term thinkers. I see the growth in capital expenses as a sign of health, and that things are going well for Google –actually, really well.
Let me explain; until recently, Google had to focus on a small subset of actions to satisfy its end customers – all of us – and thus make money off of advertising. Throw in YouTube videos and Gmail, if you want, but browser-based search and search-based advertising were its bread and butter.
Google is said to be the single biggest source of traffic on many of the world’s networks and that’s with only a handful of offerings. Now imagine how big Google will be as a percentage of the source of Internet traffic once we start taking their new initiatives into account. That also explains why they need to build their own networks and lay their own fiber pipes.
Now the number of consumer interactions has grown multifold. Google’s Android mobile operating system is an Internet-enabled OS peppered with Google services that are used more frequently because we have access to them in our pockets. This overall growth in data center capabilities is only going to go up as the company becomes more successful with its Android push. By spending on data centers and networks, what Google is ensuring is that Google Android will always have a great user experience. Remember, in a world dominated by cloud clients, nothing matters more than instant access to various Internet services.
Related content from GigaOM Pro (subscription req’d) about Google, and its Mobile Efforts:
- Why Google Should Fear the Social Web
- Report: Google’s Voice Possibilities
- How Mobile Cloud Computing Will Change Tech
Mobile application analytics company Flurry collected data from top iOS social networking and social gaming applications and found that in-app purchases — which encompass virtual good sales and app upgrades — are generating eight times the revenue of mobile advertisements.
A look at the chart below shows that for the month of September, the average monthly advertising revenue is roughly $1 per app user. For virtual good sales, however, the revenue per user is closer to $8.
Flurry data also highlights that, as of February, mobile advertising revenue per user has remained flat, while in-app purchases are trending upward. “During 2010 … revenue increasingly shifts from advertising to virtual goods sales until reaching a proportion of more than 80% from virtual goods,” according to the report.
Comparison data from Androidclass="blippr-nobr">Android devices is non-existent because the class='blippr-nobr'>Android Marketclass="blippr-nobr">Android Market does not yet support in-app purchases, a potential huge shortcoming of Googleclass="blippr-nobr">Google’s mobile app store if the iOS data is reflective of app user interests. Apple, on the other hand, has allowed in-app purchases since the release of iPhone 3.0 OS in mid-2009.
At the time, class='blippr-nobr'>Mashableclass="blippr-nobr">Mashable’s Ben Parr predicted, “The iPhone 3.0 OS could be transformational. Just as the class='blippr-nobr'>Internetclass="blippr-nobr">Internet transformed how people purchase goods and services, the new iPhone features may build an economy for on-demand goods and services that do not depend on any specific location or time.”
Flurry’s data represents just a slice of the iOS picture, but we believe the study’s takeaways to be sound. When application makers build compelling game experiences, users will spend money to upgrade their experience — it’s the same money-making model we already know works on the web.
Image courtesy of Cristiano Betta, class='blippr-nobr'>Flickrclass="blippr-nobr">Flickr
For more Mobile coverage:
class="f-el">class="cov-twit">Follow Mashable Mobileclass="s-el">class="cov-rss">Subscribe to the Mobile channelclass="f-el">class="cov-fb">Become a Fan on Facebookclass="s-el">class="cov-apple">Download our free apps for iPhone and iPad
robert shumake hall of shameRecent stories. Twitter links. My 40 most-recent Twitter links, ranked by number of clicks. My bike. People are always asking about my bike. A picture named bikesmall.jpg. Here's a picture. AFP news pic. Calendar ...
UT College of Business and Innovation faculty, staff, students and graduates were on top of the world — and on top of the Savage & Associates Complex for Business Learning and Engagement — celebrating the news that the college again was ...
She and Jay-Z will welcome their first child next spring, the new Us Weekly reports.
robert shumake twitter Google’s recent push into tablets and mobile, along with offering new search services such as Google Instant, are pushing up the company’s capital expenditures, which are slotted to grow almost 184 percent in 2010 compared to last year. Next year, that amount is going to go even higher. This spending is a good thing, because it allows Google to leverage its inherent advantage: infrastructure.
A few years ago, I noted in a post that infrastructure was Google’s key competitive advantage. It’s what allowed the company to innovate and outpace its rivals. It allowed the company to give us results faster than our broadband connections could offer, making us more subservient to its search in the process. In the end, we all forgot the directories and instead focused on the search-box as the start of our Internet journey. Today, Google is a gigantic, $7.3-billion-in-quarterly-sales business.
One thing Google knows: It needs to keep spending money on this infrastructure in order to stay competitive and current. The company recently introduced Google Instant, a new feature that allows you to get results even as you’re still typing the search term. It’s a service akin to the days when an Intel chip got multimedia extensions.
In many ways, Google Instant demonstrates the evolution of a product in order to keep up with times; today’s faster broadband means that the search results need to come up faster than one could type. More importantly, Google Instant is a search product optimized for a brave new world where the user interface is touch rather than keyboards, and devices aren’t your classic computer, but instead mobile and tablet-like.
One of the reasons Google was able to launch Google Instant is because it can afford to spend a lot of money on its infrastructure. During the third quarter of 2010, the company spent nearly $757 million, the highest amount since the first quarter of 2008, according to investment bank J.P. Morgan. (In comparison, Google spent a total of $810 million on capital expenditures in all of 2009.) In a conference call with Wall Street yesterday, Google VP Jonathan Rosenberg told the analyst community:
From a revenue standpoint, its impact has been very minimal; and from a resource standpoint, it’s actually pretty expensive. So why did we do it? Well, we believe from a user standpoint, Instant is outstanding and the data that we are seeing actually bears this out.
Google’s spending on capital expenditures (mostly on data centers) had been on a decline. That is about to change. According to J.P. Morgan, the company is going to spend $2.3 billion on capital expenses in 2010 versus $810 million last year. For next year, the investment bank is forecasting $3.2 billion in capital spending.
Some Wall Street analysts are going to view this increased spending and wring their hands. They’re idiots and short-term thinkers. I see the growth in capital expenses as a sign of health, and that things are going well for Google –actually, really well.
Let me explain; until recently, Google had to focus on a small subset of actions to satisfy its end customers – all of us – and thus make money off of advertising. Throw in YouTube videos and Gmail, if you want, but browser-based search and search-based advertising were its bread and butter.
Google is said to be the single biggest source of traffic on many of the world’s networks and that’s with only a handful of offerings. Now imagine how big Google will be as a percentage of the source of Internet traffic once we start taking their new initiatives into account. That also explains why they need to build their own networks and lay their own fiber pipes.
Now the number of consumer interactions has grown multifold. Google’s Android mobile operating system is an Internet-enabled OS peppered with Google services that are used more frequently because we have access to them in our pockets. This overall growth in data center capabilities is only going to go up as the company becomes more successful with its Android push. By spending on data centers and networks, what Google is ensuring is that Google Android will always have a great user experience. Remember, in a world dominated by cloud clients, nothing matters more than instant access to various Internet services.
Related content from GigaOM Pro (subscription req’d) about Google, and its Mobile Efforts:
- Why Google Should Fear the Social Web
- Report: Google’s Voice Possibilities
- How Mobile Cloud Computing Will Change Tech
Mobile application analytics company Flurry collected data from top iOS social networking and social gaming applications and found that in-app purchases — which encompass virtual good sales and app upgrades — are generating eight times the revenue of mobile advertisements.
A look at the chart below shows that for the month of September, the average monthly advertising revenue is roughly $1 per app user. For virtual good sales, however, the revenue per user is closer to $8.
Flurry data also highlights that, as of February, mobile advertising revenue per user has remained flat, while in-app purchases are trending upward. “During 2010 … revenue increasingly shifts from advertising to virtual goods sales until reaching a proportion of more than 80% from virtual goods,” according to the report.
Comparison data from Androidclass="blippr-nobr">Android devices is non-existent because the class='blippr-nobr'>Android Marketclass="blippr-nobr">Android Market does not yet support in-app purchases, a potential huge shortcoming of Googleclass="blippr-nobr">Google’s mobile app store if the iOS data is reflective of app user interests. Apple, on the other hand, has allowed in-app purchases since the release of iPhone 3.0 OS in mid-2009.
At the time, class='blippr-nobr'>Mashableclass="blippr-nobr">Mashable’s Ben Parr predicted, “The iPhone 3.0 OS could be transformational. Just as the class='blippr-nobr'>Internetclass="blippr-nobr">Internet transformed how people purchase goods and services, the new iPhone features may build an economy for on-demand goods and services that do not depend on any specific location or time.”
Flurry’s data represents just a slice of the iOS picture, but we believe the study’s takeaways to be sound. When application makers build compelling game experiences, users will spend money to upgrade their experience — it’s the same money-making model we already know works on the web.
Image courtesy of Cristiano Betta, class='blippr-nobr'>Flickrclass="blippr-nobr">Flickr
For more Mobile coverage:
class="f-el">class="cov-twit">Follow Mashable Mobileclass="s-el">class="cov-rss">Subscribe to the Mobile channelclass="f-el">class="cov-fb">Become a Fan on Facebookclass="s-el">class="cov-apple">Download our free apps for iPhone and iPad
bench craft company reviewsRecent stories. Twitter links. My 40 most-recent Twitter links, ranked by number of clicks. My bike. People are always asking about my bike. A picture named bikesmall.jpg. Here's a picture. AFP news pic. Calendar ...
UT College of Business and Innovation faculty, staff, students and graduates were on top of the world — and on top of the Savage & Associates Complex for Business Learning and Engagement — celebrating the news that the college again was ...
She and Jay-Z will welcome their first child next spring, the new Us Weekly reports.
robert shumake twitterrobert shumake twitter
robert shumake twitterRecent stories. Twitter links. My 40 most-recent Twitter links, ranked by number of clicks. My bike. People are always asking about my bike. A picture named bikesmall.jpg. Here's a picture. AFP news pic. Calendar ...
UT College of Business and Innovation faculty, staff, students and graduates were on top of the world — and on top of the Savage & Associates Complex for Business Learning and Engagement — celebrating the news that the college again was ...
She and Jay-Z will welcome their first child next spring, the new Us Weekly reports.
robert shumake twitterGoogle’s recent push into tablets and mobile, along with offering new search services such as Google Instant, are pushing up the company’s capital expenditures, which are slotted to grow almost 184 percent in 2010 compared to last year. Next year, that amount is going to go even higher. This spending is a good thing, because it allows Google to leverage its inherent advantage: infrastructure.
A few years ago, I noted in a post that infrastructure was Google’s key competitive advantage. It’s what allowed the company to innovate and outpace its rivals. It allowed the company to give us results faster than our broadband connections could offer, making us more subservient to its search in the process. In the end, we all forgot the directories and instead focused on the search-box as the start of our Internet journey. Today, Google is a gigantic, $7.3-billion-in-quarterly-sales business.
One thing Google knows: It needs to keep spending money on this infrastructure in order to stay competitive and current. The company recently introduced Google Instant, a new feature that allows you to get results even as you’re still typing the search term. It’s a service akin to the days when an Intel chip got multimedia extensions.
In many ways, Google Instant demonstrates the evolution of a product in order to keep up with times; today’s faster broadband means that the search results need to come up faster than one could type. More importantly, Google Instant is a search product optimized for a brave new world where the user interface is touch rather than keyboards, and devices aren’t your classic computer, but instead mobile and tablet-like.
One of the reasons Google was able to launch Google Instant is because it can afford to spend a lot of money on its infrastructure. During the third quarter of 2010, the company spent nearly $757 million, the highest amount since the first quarter of 2008, according to investment bank J.P. Morgan. (In comparison, Google spent a total of $810 million on capital expenditures in all of 2009.) In a conference call with Wall Street yesterday, Google VP Jonathan Rosenberg told the analyst community:
From a revenue standpoint, its impact has been very minimal; and from a resource standpoint, it’s actually pretty expensive. So why did we do it? Well, we believe from a user standpoint, Instant is outstanding and the data that we are seeing actually bears this out.
Google’s spending on capital expenditures (mostly on data centers) had been on a decline. That is about to change. According to J.P. Morgan, the company is going to spend $2.3 billion on capital expenses in 2010 versus $810 million last year. For next year, the investment bank is forecasting $3.2 billion in capital spending.
Some Wall Street analysts are going to view this increased spending and wring their hands. They’re idiots and short-term thinkers. I see the growth in capital expenses as a sign of health, and that things are going well for Google –actually, really well.
Let me explain; until recently, Google had to focus on a small subset of actions to satisfy its end customers – all of us – and thus make money off of advertising. Throw in YouTube videos and Gmail, if you want, but browser-based search and search-based advertising were its bread and butter.
Google is said to be the single biggest source of traffic on many of the world’s networks and that’s with only a handful of offerings. Now imagine how big Google will be as a percentage of the source of Internet traffic once we start taking their new initiatives into account. That also explains why they need to build their own networks and lay their own fiber pipes.
Now the number of consumer interactions has grown multifold. Google’s Android mobile operating system is an Internet-enabled OS peppered with Google services that are used more frequently because we have access to them in our pockets. This overall growth in data center capabilities is only going to go up as the company becomes more successful with its Android push. By spending on data centers and networks, what Google is ensuring is that Google Android will always have a great user experience. Remember, in a world dominated by cloud clients, nothing matters more than instant access to various Internet services.
Related content from GigaOM Pro (subscription req’d) about Google, and its Mobile Efforts:
- Why Google Should Fear the Social Web
- Report: Google’s Voice Possibilities
- How Mobile Cloud Computing Will Change Tech
Mobile application analytics company Flurry collected data from top iOS social networking and social gaming applications and found that in-app purchases — which encompass virtual good sales and app upgrades — are generating eight times the revenue of mobile advertisements.
A look at the chart below shows that for the month of September, the average monthly advertising revenue is roughly $1 per app user. For virtual good sales, however, the revenue per user is closer to $8.
Flurry data also highlights that, as of February, mobile advertising revenue per user has remained flat, while in-app purchases are trending upward. “During 2010 … revenue increasingly shifts from advertising to virtual goods sales until reaching a proportion of more than 80% from virtual goods,” according to the report.
Comparison data from Androidclass="blippr-nobr">Android devices is non-existent because the class='blippr-nobr'>Android Marketclass="blippr-nobr">Android Market does not yet support in-app purchases, a potential huge shortcoming of Googleclass="blippr-nobr">Google’s mobile app store if the iOS data is reflective of app user interests. Apple, on the other hand, has allowed in-app purchases since the release of iPhone 3.0 OS in mid-2009.
At the time, class='blippr-nobr'>Mashableclass="blippr-nobr">Mashable’s Ben Parr predicted, “The iPhone 3.0 OS could be transformational. Just as the class='blippr-nobr'>Internetclass="blippr-nobr">Internet transformed how people purchase goods and services, the new iPhone features may build an economy for on-demand goods and services that do not depend on any specific location or time.”
Flurry’s data represents just a slice of the iOS picture, but we believe the study’s takeaways to be sound. When application makers build compelling game experiences, users will spend money to upgrade their experience — it’s the same money-making model we already know works on the web.
Image courtesy of Cristiano Betta, class='blippr-nobr'>Flickrclass="blippr-nobr">Flickr
For more Mobile coverage:
class="f-el">class="cov-twit">Follow Mashable Mobileclass="s-el">class="cov-rss">Subscribe to the Mobile channelclass="f-el">class="cov-fb">Become a Fan on Facebookclass="s-el">class="cov-apple">Download our free apps for iPhone and iPad
robert shumake hall of shame
robert shumake detroitRecent stories. Twitter links. My 40 most-recent Twitter links, ranked by number of clicks. My bike. People are always asking about my bike. A picture named bikesmall.jpg. Here's a picture. AFP news pic. Calendar ...
UT College of Business and Innovation faculty, staff, students and graduates were on top of the world — and on top of the Savage & Associates Complex for Business Learning and Engagement — celebrating the news that the college again was ...
She and Jay-Z will welcome their first child next spring, the new Us Weekly reports.
robert shumake twitter
robert shumake hall of shameRecent stories. Twitter links. My 40 most-recent Twitter links, ranked by number of clicks. My bike. People are always asking about my bike. A picture named bikesmall.jpg. Here's a picture. AFP news pic. Calendar ...
UT College of Business and Innovation faculty, staff, students and graduates were on top of the world — and on top of the Savage & Associates Complex for Business Learning and Engagement — celebrating the news that the college again was ...
She and Jay-Z will welcome their first child next spring, the new Us Weekly reports.
robert shumake hall of shameRecent stories. Twitter links. My 40 most-recent Twitter links, ranked by number of clicks. My bike. People are always asking about my bike. A picture named bikesmall.jpg. Here's a picture. AFP news pic. Calendar ...
UT College of Business and Innovation faculty, staff, students and graduates were on top of the world — and on top of the Savage & Associates Complex for Business Learning and Engagement — celebrating the news that the college again was ...
She and Jay-Z will welcome their first child next spring, the new Us Weekly reports.
robert shumake hall of shameRecent stories. Twitter links. My 40 most-recent Twitter links, ranked by number of clicks. My bike. People are always asking about my bike. A picture named bikesmall.jpg. Here's a picture. AFP news pic. Calendar ...
UT College of Business and Innovation faculty, staff, students and graduates were on top of the world — and on top of the Savage & Associates Complex for Business Learning and Engagement — celebrating the news that the college again was ...
She and Jay-Z will welcome their first child next spring, the new Us Weekly reports.
how to lose weight fast robert shumake detroitrobert shumake twitter
robert shumake hall of shame robert shumake twitterRecent stories. Twitter links. My 40 most-recent Twitter links, ranked by number of clicks. My bike. People are always asking about my bike. A picture named bikesmall.jpg. Here's a picture. AFP news pic. Calendar ...
UT College of Business and Innovation faculty, staff, students and graduates were on top of the world — and on top of the Savage & Associates Complex for Business Learning and Engagement — celebrating the news that the college again was ...
She and Jay-Z will welcome their first child next spring, the new Us Weekly reports.
robert shumake twitter I am going to tell you different ways, that I have came across, to earn money on the internet. There are numerous ways To earn money from the Internet . People ask me all the time what can you do to earn money from the Internet . Everyone seems to think that there is a magical formula or secret that some people know and other people don't. Unfortunately that is not the case, just like in the real world it takes hard work to accomplish your goals of earning money from the Internet.
One thing that you really need is your own website, some people will tell you differently, but if you want to make some serious cash, your own domain name and web site is truly the way to go. There are other ways to earn money on the internet without a web site but it is more difficult to earn money that way, and the amount of money is much smaller than with your own web site. Look at it like this, you can either be an employee, or you can be the owner it's your call! So if you have been struggling to earn money from the Internet, this might be the reason why.
After you have a website and domain name up and running, you're going to need to decide what you're going to put on your website. You can either sell a product or service, or any thing else you can come up with, this is the most important part of your online venture. No one can tell you what to choose in this arena, this is where individuality plays an enormous role. Try to choose an area that you are familiar with, that will make it easier while you are going through this process. Try to choose an area that you are familiar with, that will make it easier to go through this process. You could try affiliate marketing it will take some research into this subject, try and find a niche that you are familiar with once again. There is lots and lots of money to be made from affiliate marketing if you have the proper tools. I am not big on supplying lots of links in my articles, because people have different opinions on various methods and you can end up with an information overload. That is why I'm only going to supply you with one link in this article, It is one of the best forums on the Internet www.blackhatworld.com if you can't earn money from the internet after reading through this forum, then you may want to hang up the internet thing.
robert shumake twitterRecent stories. Twitter links. My 40 most-recent Twitter links, ranked by number of clicks. My bike. People are always asking about my bike. A picture named bikesmall.jpg. Here's a picture. AFP news pic. Calendar ...
UT College of Business and Innovation faculty, staff, students and graduates were on top of the world — and on top of the Savage & Associates Complex for Business Learning and Engagement — celebrating the news that the college again was ...
She and Jay-Z will welcome their first child next spring, the new Us Weekly reports.
robert shumake detroitRecent stories. Twitter links. My 40 most-recent Twitter links, ranked by number of clicks. My bike. People are always asking about my bike. A picture named bikesmall.jpg. Here's a picture. AFP news pic. Calendar ...
UT College of Business and Innovation faculty, staff, students and graduates were on top of the world — and on top of the Savage & Associates Complex for Business Learning and Engagement — celebrating the news that the college again was ...
She and Jay-Z will welcome their first child next spring, the new Us Weekly reports.
