GaGaGooogle on the Law of Mobility
GaGaGooogle has an interesting set of posts [1,2,3,4] on Google’s Mobile Strategy and on “The Laws.” I took notice because part 4 of the series argues convincingly the Law of Mobility. I recommend reading the whole post, but here are some quotes from the series:
Today Google is a pure money machine. The company has done a phenomenal job maximizing ad revenues. They also know they need to think, plan and executive for the long term. …
As Eric Schmit puts it:
“Mobile, mobile, mobile – it’s probably the most wide open space out there right now.”
Google has benefited from several universal “laws” and will continue to benefit from them. Let’s take a look:
First, Metcalfe’s Law - which states that the value of the Internet increases with the square of the number of nodes or end users on the Internet. … Anyway, Google benefits since more people continue to connect and ultimately use Google’s search and other products. And the fact that their products are free and intuitive, only adds to their growth.
Second , Moore’s law - which states that every 18 months processing power (and chip density) double while the cost is cut in half. Google benefits in many ways because they can add more storage and processing power to their network for less money (also using less storage/rack space in their data centers). Simply put, their data centers are getting smaller (physical size) yet their capacity is growing.
Moore’s law also applies to handheld devices, which Google will leverage for it’s Gphone. The mobile revolution we are about to see is a result of Moore’s law. But there is also a third law that ties nicely into Google’s Mobile Strategy: the Law of Mobility.
The law states that the value of any product or service increases with its mobility, where the value of mobility is realized as availability and contextual relevance. From Russ McGuire’s (he coined the term) book The Power of Mobility:
… Bottom line for Google: More profit.
Mobile advertising will be twice as profitable as landline/PC-based ads. …
Erick Schmidt:
“[Mobile] ads are twice as profitable or more as non mobile ads because they are more personable” Bingo! Speaking of their KDDI partnership in Japan at the D conference.
Note that Chad makes a number of predictions in his posts that are not substantiated by official announcements by the referenced companies (including my employer). I think his conjecture is creative and wouldn’t be surprised if at least some of his predictions end up being on-target, but you’d be wrong if you thought my reference to his blog represented any kind of validation of his claims. Most of what he’s predicted I have no idea if its true or not, and some of what he’s written I’m pretty sure isn’t being pursued by the companies listed. But I look forward to keeping an eye on his creativity - we might all get some good ideas from him.