Google to move further into software

Google to move further into software

Google AppsGood news for Google Apps fans – Google Inc have announced that they are to take a marked step beyond searching and advertising and move further towards online software applications. Accordingly, the company have devised a new corporate tagline of “Search, Ads and Apps”.

The announcement was made on Thursday by Google Chairman Eric Schmidt shortly ahead of the annual shareholder meeting. Schmidt said of the move:

The idea here is to talk about this shift to an online lifestyle. People are spending more and more time (online) and Google can bring some of these new applications that really matter to them.

At the moment, virtually all of Google’s revenue comes from its patented Ad-Sense advertising system which intelligently allocates advertisements to sites based on content. In 2006, it made its first steps into the software world with Google Apps which includes free tools such as an online word processor, spreadsheet and calendar. However, it also offers premium licensed versions to corporations, governments and research institutes.

Whether Google will concentrate on these services is not clear although if the aim is to diversify its revenue streams, then it seems likely – unless it starts charging for apps that are currently free.

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