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Many ascribe Google with powers of mythical proportions. Just 10 years ago, there wasn't a Google, and today it's a $10 billion powerhouse with a market cap that's $30 billion greater than Hewlett-Packard (now the #1 technology company in terms of gross revenue). Google's ability to generate bags of cash and undermine competitors in a way that makes Microsoft cry foul makes many in IT, telecom and the media believe Google is unstoppable and will eventually own the Internet.
That's competitors talking. In reality, Wall Street is already wondering how Google will continue its stratospheric growth as the search market becomes commoditized. The answer, in part, is diversification. YouTube is one way to keep the Web hits rolling in, and so is GoogleTalk, a rival to Skype's VoIP app. But the next evolution in Google's development is bringing complex products to customers that enhance their existing or future business infrastructure and applications. And with complexity comes services, and services is something Google simply doesn't do. Period.
"Partners aren't there to complete the products, but to enhance and extend them," Google's Kevin Smith told VARBusiness.
"The point is not to disrupt what they're doing, but to enhance what they're doing for the customers," added Smith, who serves as head of Google's enterprise partnership effort.
Google's enterprise division offers everything from Google Search Appliance and Mini that give businesses host-based internal search capabilities to a suite of basic office productivity applications. Google makes little differentiation between vendors and traditional solution providers. For instance, it has partnerships with Avaya for integrating GoogleTalk with Avaya's VoIP and unified communications gear. And it's working with Business Objects and Cognos to integrate its search technology to provide users with real-time search of business analytics data.
Solution providers, through Google's nascent channel program, are building APIs and hooks into other vendor's software packages -- such as Microsoft's Exchange server -- to better index and search stored data.
By and large, Google is still a direct sales company. While it has no plans of modifying the model that has brought it so much success to date, its customers are asking for more services that it's neither capable of nor wants to deliver. Any service falling outside Google's core competency -- security, application optimization, storage, etc. -- is the purview of the channel. Smith says Google will increasingly refer business to solution providers since that's the channel's core competency.
"It comes down to competency and expertise," Smith says. "We have many talented people, but our partners have the vertical expertise and experience. It makes sense to work with them, and it would be the fastest way to market."
Currently, Google has a little more than 140 partners worldwide, of which two-thirds are in North America. Smith says Google has no plans to go on a recruiting spree and enhancing its channel program.
"It's not a matter of numbers; it's a matter of success," he says. "It's more about meeting the customers'' need for services than growing the number of solution providers."
While Microsoft and Cisco may view Google as their nightmare threat, solution providers may find new opportunities for product sales, services engagements and consulting by working with and around Google. If solution providers can decrypt how Google's technology and products can enhance their existing IT hardware and software offerings, they will become valuable resources to Google and win greater referral business.
What do you think about Google's plans for the channel? Do you view Google as a channel friend or foe? Click here to share your thoughts with Larry.
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