So Google and Dell agree that the
latter will ship Google Pack installed on every single computer it ships in
a three-year span. The value of the deal? 1 billion.
Now, as far as I can think of there's no revenue side on the deal for
Gooogle. Not on the short term at least. So where's the catch -- is this
value creation or just a simple direct attack against Microsoft?
A little bit of both. I think that the bigger picture, if we're to consider
also the
recent Goobuntu rumours, indicates that this may be finally the decisive
step towards what Clay Christensen put very well in theory about disruptive
technologies (open source) changing an entire (software) industry
landscape (Windows domination).
The rules of the game are changing fast, we're living interesting times.
Comments
Do you think that currently included and future software providers get in the Pack for free?? Come on...
Same as Google pays browsers makers like Firefox and Opera for EACH search generated, it charges Norton and others for EACH installation of their software.
dude, opera doesn't come with the pack and is freely dowloadable from elsewhere, such as all the other apps. norton comes with a six month subscription.
that is a simple and expensive distribution deal - the stake here is new (google) customer aquisition, other than the ones coming because of the brand awareness. And it is certainly going to lower the customer acquisition price and affect the cash flow.
A la long however, the strategic implications are greater, see the the post.
norton comes with a *free* 6 months subscribtion, and the deal will *increase* the cust. acquisition price and lower the overall margins
I didn't say that... I said that both Opera and FF get money from Google for integrating the search engine into the browser (and they don't get a flat fee, but x cents for each search generated). Same does amazon for example wt opera.
And with pack - yes, norton gives 6 months for free - but they pay google to be IN THE PACK.
The business of an antivirus isnt selling the package, but the subscription.
So both the browsing business AND Pack are a new model of affiliation if you want.
Yes- it's expensive, of course. THough I think it's fun to come to the office in the morning and look around, and tell somebody: "dude - we need a new printer, 2 new 100" monitors and - wtf, let's spend 1 billion on a dell deal".
is that 10% of the Pack users will start paying for updates. If that is 10% of 100 mil Pack users, it sure worths whatever Norton pays Google for that...
it doesn't make sense. why would i pay google to give away my software. who pays me? :D
10% conversion rate for norton? you gotta be kidding me.
Dragos - is the funnel effect.
1 million Acrobat Reader users generate 1.000 Acrobat buyers.
1 million Norton users generate 1.000 antivir buyers.
Is really that simple.
(don't know what conversion rates look like, but I'm pretty sure it's profitable both for google AND adobe/norton/whatever)
I mean - it's waaaay more obvious with pack than it is with opera or Firefox...
It might be that trillian doesn't pay anything (since they don't sell anything as far as I know)... but come on - you think google is that stupid to help, say, GalleryPlayer do the shareware game???
Come on dragos, affiliate is a BIG BIG BIG business model nowadays... And google is The BIG BIG BIG player on this game.
still, there's no money and facts for supporting your arguments. but the theory sounds ok. :))
Trillian has a free version, and a pro one. So they sell something. :)
I'm not saying anything - dragos will eventually ban my IP :)