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December 20, 2010 08:15 AM

Google Faces High Profile Failures in Internet TV and Smartphone Ventures

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There's been a creeping sense of inevitability to Google's rise to the top of the technology food chain. The company successfully beat back Apple's once-best-selling iPhone with its Android platform, and did so in less than two years. It is taking on Microsoft in virtually every market imaginable, a feat that just a few years ago would be described as impossible fantasy. And it appears to be dominating all others in the nascent market for cloud computing, leveling the playing field for individuals and companies of all sizes.

There's just one problem. Most of Google's products and services aren't actually that competitive, and some are even downright horrible. More problematic for the online giant: Two of its highest profile new products are already considered failures, one so bad that the company has pulled it out of next month's Consumer Electronics Show (CES) so it can completely revamp for a later re-release in 2011.

I'm writing about Google's Nexus S smartphone and Google TV.

The Nexus S is definitely the less embarrassing of the two. It launched to good reviews, mostly because of improvements in the latest version of the popular Android smartphone OS, which will make its way to other Android phones as well. But the Nexus S is the second generation version of the poorly-received Nexus One phone, which was the subject of so many customer complaints that Google stopped selling the device after just a few months. And Google recently delayed the international release of the Nexus S, and has already dropped the price by a stunning $185 in the UK. And this before the device even went on sale overseas.

Compared to Google TV, however, the Nexus S is a stunning success. Google TV launched to universally negative reviews, and the Sony TV unit I received is so wretched and indecipherable that I ultimately refused to even review it. Google TV is so horrible, so utterly unusable and unfriendly, that Google has taken the unusual step of pulling the product from CES 2011 and telling its hardware partners to hold off on new product announcements. Instead, Google will completely revamp the ill-conceived hardware and relaunch it sometime later in 2011.

While such criticisms are often hidden beneath the latest gadget-happy headline, other Google products are starting to receive a bit more scrutiny as well. In another high-profile move, the company recently held a second Chrome OS event, handing out prototype devices to the tech press, who were only too happy to pretend not to notice that Google had actually delayed the release of the product from late 2010 to sometime in 2011. (You may recall that my own headline regarding this event simply read "Google Delays Chrome OS to 2011 ".) The company is the subject of more privacy concerns than even Facebook. And its enterprise services are lackluster and incomplete, especially when compared to Microsoft's more mature offerings.

Even Google's supposedly successful products are questionable. Phones based on its Android platform are apparently outselling the iPhone, but this required numerous partners selling dozens of devices on multiple wireless networks in every market in the world. Apple, meanwhile, basically sells a single iPhone, and it does so by itself and via only a subset of the available wireless networks. So yes, Android is winning. But the gap isn't that big, and it's pretty clear that the iPhone is in fact outselling most Android handsets combined.

I'd also point out that the tech press has made much in the past year about Microsoft's inability to create a viable iPad alternative, while simply ignoring that Google has been even more inept in this department. Not only does Google not yet have an answer to the iPad, it actually spent much of 2010 trying to convince its partners against pushing Android-based devices in this space. Instead, it's looking ahead to yet another new Android version, perhaps due in 2011, for such purposes. (One thing you'll learn about Android is that the next version is always the one that will fix all the problems.)

The point here isn't to harangue Google, per se, but rather to point out that we're often all-too-quick to point out the perceived failings in a certain software giant from the northwest US, while silently ignoring Google's many product failures. (And yes, I've been guilty of this as well, though I do feel a certain responsibility toward Microsoft and its customers.) Google is a company that still makes the vast majority of its revenues—I'm talking roughly 99 percent of those revenues, according to Wikipedia—from awful little textual ads tied to its dominant search engine. This despite major initiatives in virtually every tech market imaginable.

The problem for the Microsofts of the world, of course, is that Google's seemingly endless supply of money gives the company the ability and the time to quickly enter new markets with products—good or bad—and improve them until they are finally competitive. (Google currently has over $30 billion in cash and is adding almost $4 billion to its hoard each quarter.) But it's important not to lose sight of the fact that not everything Google does is even remotely competitive out of the gate. In fact, some of the stuff this online giant foists on the public is actually pretty terrible.

Someone had to say it.

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Comments
  • Jones
    2 years ago
    Dec 23, 2010

    "(One thing you'll learn about Android is that the next version is always the one that will fix all the problems.)"

    No, that's Windows you're thinking of.

    It's pretty hilarious to attack Google on the grounds that they make money only from one product, while also being the fanboi in Chief for Microsoft, which of course only makes money on illegal monopolies obtained years or decades ago. Everything else is either losing money or irrelevant.

    It's also amusing to see Paul reverse his usual BS about Android "killing" the iPhone since the subject of THIS attack article is Google rather than Apple.

    We've reached the point with Paul that he'll say anything for any occasion, ignoring facts and all his own previous statements, because the sole purpose of these rants is to do cheerleading for Microsoft. The new Enderle, and that's a sad, sad place to end up.

  • O
    2 years ago
    Dec 21, 2010

    Paul is right in the sense that Google is failing in certain markets. Android works great on phones, and that is a *win* for them. But a Phone OS is simpler than a desktop one.

    And Chrome OS... I'm still trying to find a reason for it. It reminds me of Sun's prior Network Computer (JavaStation). It wasn't a stunning success... The big problem, Eric Schmidt was the CTO of Sun (now CEO of Google), so it's almost like he insists on trying the same darn Folly a second time and expects different results. It's bizarre hubris.

    In all fairness to them, their competition has been making software and operating systems for almost 30 years. In a way they've been doing pretty well for a firm that only has a handful of years of experience.

    The real problem is that Google is not a real technology company... Their campus isn't like any business I've seen, and all their products are perpetually beta.

    Unfortunately their perpetual-beta attitude of their web-apps has slipped into their consumer electronics devices. They really need to pull back and realize you can't ship beta hardware to *anyone*. Sure a web-app is fine since you can tune it on the fly, but when you're holding a phone, or watching TV, it just needs to work. Being cool is secondary to "working".

    MS, Apple, RIM, etc, tend understand this (with the exception of a handful of failures by each). That's why they seem slow to adapt, because they have a culture of waiting for a "finished" product before they start shipping them. There is an old adage in the VC world -- invest in 10 companies, and if one makes it big, you have a winning record.

    Google seems to apply this to products. Eventually that tarnishes their name.

    Their competition on the other hand might release 10 products and have 1 flop, which is a lot less risky and tends to leave less of a sour taste in people's mouth.

  • S
    2 years ago
    Dec 21, 2010

    google can no longer compete. it is too fragmented, spread too thin and keeps on failing: list of failures include

    like buzz, wave, google video, catalog sarch, notebook, dodgeball, jaiku, mashup, the upcoming google me, google talk, page creator, book search, alerts, trends, sketch up, deskbar, desktop search, scout, number search, directory, google local, realnames, related links, answers, X, whois....and the list keeps on going and going...

    in other words google is struggling to remain relevant in a world where facebook is eating it's luch and online advertisement has peaked. since they make zero money on android and no money with gmail and docs, google is now suffering victim to it's strategy of using free do displace payed competition...the problem with that plan is that it is essentially a deck of cards, and slowly but steadily the googlopoly is collapsing.

  • Hallworth
    2 years ago
    Dec 21, 2010

    I'm with PFM on this one. As usual, there's an us versus them approach to IT companies. All companies make mistakes and foist unsuitable products on their customers, Microsoft, Apple and Google included. It's also unreasonable to say that Google promises "all will be fixed in the next version" given that Microsoft invented this phrase and still uses it today.
    When Google was new, it could afford to make mistakes because it was relatively unknown, was seen as the rebellious upstart and stuff was free - its users would forgive its errors. Now its massive and every move is watched for the minutest of hiccups and errors. Microsoft when through the same evolution and now its time for Google to realise that, although it has loads of cash, it has to take its customer more seriously. Time to realise that releasing a Beta something that's free to use is very different to launching a product that your customer is expected to pay for. Its no longer a playground and paying customers that are upset won't pay again in the future. Good luck Google, I hope you can get it right.

  • Hallworth
    2 years ago
    Dec 21, 2010

    I'm with PFM on this one. As usual, there's an us versus them approach to IT companies. All companies make mistakes and foist unsuitable products on their customers, Microsoft, Apple and Google included. It's also unreasonable to say that Google promises "all will be fixed in the next version" given that Microsoft invented this phrase and still uses it today.
    When Google was new, it could afford to make mistakes because it was relatively unknown, was seen as the rebellious upstart and stuff was free - its users would forgive its errors. Now its massive and every move is watched for the minutest of hiccups and errors. Microsoft when through the same evolution and now its time for Google to realise that, although it has loads of cash, it has to take its customer more seriously. Time to realise that releasing a Beta something that's free to use is very different to launching a product that your customer is expected to pay for. Its no longer a playground and paying customers that are upset won't pay again in the future. Good luck Google, I hope you can get it right.

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