Opinion: Google Misses The Channel Mark

Google's first foray into U.S. broadline distribution is yet another example of the Web 2.0 behemoth missing the channel mark.

The deal with distribution giant Ingram Micro opens the door for solution providers to sell Google's Search Appliance and the Google Mini Appliance.

Google isn't providing details of exactly what kind of investment it is making in the channel or how many solution providers it wants to bring on board. Without those details, it looks like another half-hearted, bric-a-brac channel effort rather than a well-thought-out comprehensive channel strategy aimed at winning the hearts and minds of the channel at large.

Too bad Google isn't going all out with a no-holds-barred channel assault aimed at taking down Microsoft. It happens to have some of the hottest technology assets on the planet, which channel partners could use to bring compelling Web 2.0 functionality to businesses of all sizes.

And remember, it's the small and medium businesses that are the first to take the cutting-edge technology plunge, not enterprises.

What it comes down to is the channel is a sideshow for Google and one it does not want to spend considerable time, money or energy working with to build its business.

Suggestion to supposedly channel savvy Google CEO Eric Schmidt: doesn't it make sense to build a broad and deep set of channel partnerships with technical certifications?

Why not a channel search optimization specialist certification giving VARs the ability to boost their customers' visibility on Google searches? Or a Google desktop business productivity certification so partners can build a business around Google's word processor, spreadsheet and e-mail to take on Microsoft? And why not a certification for Google GPS specialists giving partners the keys to build solutions around Google Maps?

Of course, such a channel effort would mean spending a considerable amount of money and effort working with partners. When you make the lion's share of your sales and profits off search advertising, that's just not a big priority. Note to Microsoft: Google's nascent attempt to build a channel is your biggest competitive advantage. If the Google brain trust ever wakes up, you guys at Microsoft are going to be Netscaped. Remember, how you used Free to kill Netscape? Well Google has the same model. Only they don't have a channel to make it happen.

NEXT: Ingram could make the difference

All this Google-Ingram Micro non-channel action comes with Google itself pressing a federal judge to extend the antitrust consent decree against Microsoft in order to address concerns regarding the search functions in Windows Vista. Ironic given the fact that Google is ripe to be looked at for all matters antitrust regarding its own search business.

For the few channel players that have successfully teamed with Google, hats off to you. You have managed to navigate a traditionally channel-indifferent organization to build a business that few of your colleagues have invested in. Not a bad model. Of course, more solution providers will certainly enter the game with the Ingram Micro deal. The question remains: how much business can partners build around these appliances? And does Google really value these channel partnerships?

Solution providers that decide to bite at the search appliance opportunity will likely find little help from Google (Have you ever tried to get somebody at Google to answer a question about search? I know of one person who tried to get an answer from a live Google engineer and was actually threatened with a lower search ranking for his indiscretion).

Obviously Ingram's well-proven expertise in building channel partnerships is going to be critical here and will likely determine whether this new sideshow effort succeeds or fails. Ingram is at the very top of the distribution pyramid and certainly has the talent to get it done. But whether they do or not is going to come down to how much money Google is giving Ingram to proselytize and build brick by brick with its partners a strong and robust search appliance business.

For my friends at Ingram, my message is: Good luck dealing with Google. You're going to need it.

What channel partners have got to ask themselves is if they want to partner with a company that is largely indifferent to them? Such a partnership may work for six months or a year. But eventually you'll get burned.

This morning with the cat out of the bag on the new landmark distribution agreement with Ingram, the vendor's Google Mini Web page answered "no" to the question: "Do you have a reseller program?"

Given the state of the current search appliance channel offering, that probably still holds up.

Google has made much of its "Do No Evil" mantra. Well when it comes to the channel, maybe they should simply rework it to: "Do Evil or Do No Evil. We Don't Care."