Is Google Planning a Tech Consulting Service for Businesses?
Google (GOOG) is known for at least two things: being able to make buckets of money, and having one of the least diversified business models in technology. For the company, advertising is all. Even Android, its wildly successful device operating system, depends on ads to generate money.
However, something else may be in the works. Two weeks ago, Google filed for a U.S. trademark that suggests the company plans to create a broad-based technology service brand that would design and implement business systems for clients, host applications and websites, and even provide so-called break-fix -- hardware and software troubleshooting.
Google's attempts to broaden its business base, like paid versions of Google Apps for corporations, have been an abject failure. Collectively, they contributed only 3 percent to revenue last quarter, and the dollar amount actually dropped year over year by 11.5 percent.
The mark is Web & Main. Google filed for the trademark on May 25. There are two categories of use listed in the application. One would seem like business as usual: "business management and consultation services; advertising, marketing and promotion services." Google already offers advertising, marketing, and promotion services, so something in that category might be nothing more than a new promotion in the works.
However, the second one is more intriguing:
consulting services in the design and implementation of computer-based information systems for businesses; web site design, creation and hosting services; website portal services; application service provider, namely, hosting, managing, developing, and maintaining applications, software, and web sites; technical support services, namely, troubleshooting in the nature of diagnosing computer hardware and software problemsGoogle is in a few of these areas already. Google Apps would fall into the application server provider category and Google Sites would handle creating and hosting websites. But consulting services in the design and implementation of business information systems? That has a far more on-hands sound to it, and is something you don't associate with the search king.
There are historic examples of why Google might consider expanding into services and consulting. When faced with slowing growth, many large technology companies have created or acquired consulting arms. It was a heavy shift to consulting and services that pulled IBM out of the doldrums years ago. HP bought Electronic Data Systems (EDS) and Dell bought Perot Data Systems. Microsoft (MSFT) has had consultants for years.
All these companies also have networks of resellers and consultants that can provide services. Even relatively new vendors like Salesforce.com have recognized that they needed consulting, not only to expand growth, but to provide services that many companies would require to use their services.
To stay a player in the corporate cloud market, Google needs similar capabilities, not just for its own software offerings, but for third parties that build on its platform. That's even truer if, as the Web & Main name sounds, Google is targeting smaller companies. However, building a responsive and effective consulting arm will require more stretch than a circus contortionist, given Google's poor reputation for customer service.
Related:
- How Apple's iCloud Could Change Everything -- Again
- Cloud Computing: Can't Anyone Play This Game?
- Google's Rivals Are Busily Squeezing Android To Death With Patents
- Google Starts Its Own Groupon for Location, Location, Location
Erik Sherman is a widely published writer and editor who also does select ghosting and corporate work. The views expressed in this column belong to Sherman and do not represent the views of CBS Interactive. Follow him on Twitter at @ErikSherman or on Facebook.
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