April 02, 2005

Surely Google is not working on VoIP?

Starting a couple of months back, the buzz was that Google is working on VoIP. It was started with the flimsiest of evidence and subsequently any and all information was used to support the thesis. Om tried valiantly to put a break. Now probably we may have a more concrete information.

After reviewing Google’s 10-K, Mark Evans tells us that Google will spend about $500 million in capital expenditure focusing on “internal projects such as video, desktop search, comparative shopping, blogs, e-mail and localization that complement its search technology.” There is no mention about telecom related expenditures. So at best, they could only be working on development. Either that or VoIP is so inexpensive to deploy that it doesn't show. Right?

Posted by aswath at April 2, 2005 07:54 AM
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what makes u think google is going to enter voip as a service provider?

they strength is in search - and that's what they will do wrt to voip. thats where they are going so yes, it is already in their budget.

Posted by: James Seng at April 2, 2005 11:50 AM

Did I say that Google is going to be VoIP service provider? Probably I should have been clearer. I am saying that if they are, then they are not identifying it in their capital budget.

Posted by: Aswath at April 2, 2005 12:56 PM

I look at Google's $500 million capital spending budget as a huge skunkworks with a little "let's see what sticks" mentality. Google isn't afraid to experiment with new Web services, so why not VOIP? If it brings in more users for the core search service, that's great.

Posted by: Mark Evans at April 3, 2005 12:28 PM

My apologies. You didn't - but a internet radio talkshow on VON and I busrted laughing when the 'expert' claims Google going into VoIP like Vonage.

The problem is everyone is so focus on VoIP service provider like Vonage model and forgets the interesting one, the one that actually makes money are the ones people not looking at.

Anyway, we know Google is into VoIP. We know it is not about been service provider but more along "yellowpage". Whether they reflect it in their budget or not, that's not important right?

Posted by: James Seng at April 5, 2005 10:17 PM

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