Google Fires Back At Ballmer Comments

By Casey Chan  | Feb 11 2009 | 7:18 am  | 11 Comments

We know Microsoft CEO Steve Ballmer has a penchant for saying the darndest things. Just back in November, he stated:

“I don’t really understand their strategy. Maybe somebody else does. If I went to my shareholder meeting, my analyst meeting, and said: ‘Hey, we’ve just launched a new product that has no revenue model!’… I’m not sure that my investors would take that very well. But that’s kind of what Google’s telling their investors about Android,”

 

And since at the time Google didn't defend itself, we said:

Though he is technically right and that Google doesn’t make money on Android alone, he seems to be missing the point. Android serves as an extension of Google’s services which all point back to search which all point back to ad revenue which all lead to money. Google’s logic? If more people use Android, more people use Google, and more money for us. So we’ll give Android away, heck, they’ll let anyone use and tinker with it. Makes sense here.

 

And after waiting a good 3 months for Google to defend itself on its business model for Android stating:

"As the internet grows, so does Google benefit from potential growth," he continued. "I think our business model has proven that it works well so far."

 

So I guess Google agrees with us: any way to improve the Internet experience, be it on a mobile device or a PC will somehow trickle down and help Google's bottom line. We think that's as good a strategy as any. What do you guys think?

[ZDNet via modmyGphone]

Casey Chan

Casey Chan

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There are 11 comments

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Rick Falls says:

Ballmer is right, except that as convoluded as it sounds Google has manged to generate some serious earnings in spite of not being clear about how.

As Microsoft has grown google became the new kid on the block an they have acted nimbly and then responded to where the chips fell.

I prefer my simple teeny tiny "membership business model" over the former little guys who have become corporate GIANTS !

LukasFT says:

Google is bigger or at least near as big as Microsoft

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LukasFT says:

Best strategy ever :)

ChromeJob says:

I think it's always in Ballmer's self-interest to pooh-pooh open source initiatives. Translation: "It's not greedy, exclusive, and tied directly to our bottom line, so I don't get it."

The longer he uses this, the less reasoned it sounds. Today, he sounds like a 50-something dad trying to understand his 14-year-old's penchant for sexting. "I don't get it, I just don't get it." It's okay, Daddy Ballmer, you don't have to get it. Just pay the bill."

TenshiNo says:

Regardless of what we "think", I think Google's reported $9 billion net revenue reported last year kinda says it all.

Parker Clack says:

He didn't "get" Linux either.

Google is working on the classic "Gillette" model or loss leader. Give 'em one thing to draw you into their real money maker.

plunder says:

It always surprised me that someone like Bill Gates decided to work with this man. I mean. Woz got Steve Jobs FFS - so Microsoft should have died from that mistake alone. He presents as a PR clown, with opinions to match. Then he acts like Zaphod Beeblebrox or Jeremy Clarkson pulling faces; but lacks the charm required to pull it off. On the few occasions I have seen him behaving like a serious Adult he looks much more credible. It's time he grew up.

Naturally he tries to put Android down, WP8 remains a minority product even with superb Nokia hardware behind it (at great prices). As an OS WP8 has a lot to offer.

In the main these comments makes me sad that Google don't work 20% harder to streamline the core of Android properly and utterly dominate Mobile. It may be more than a hobby to Google, but do they actually CARE about it in the way Apple, Microsoft and Blackberry clearly do about their OS?

poglad says:

Some very good points. I think we're at a turning point in mobile right now, and nobody seems quite ready to make the push that's required. Apple will have nothing to show for months, Google's point upgrade of Android is bound to lack the revolutionary kick that would seal the deal, and WP8 is being ridiculed to death thanks to Ballmer. You would almost think they have some kind of secret deal going on, agreeing not to rock the boat too much.