Friday, April 01, 2005

Google Outlines Plan To Spend to Expand - BizReport

Google Outlines Plan To Spend to Expand - BizReport

This Google article is a good one for those who do not appreciate the full scope of Google. There is a very wide "moat" being built around this business. YHOO and MSFT have certain advantages over GOOG and GOOG has advantages over YHOO and MSFT.

Some folks still worry that a new technology will come along to supplant Google; not likely. The more likely event is that these big three will buyout any potential business that they don't command and will gradually take the business of others. There definitely are economies of scale and Google has announced plans to spend $500 million on technology in 2005.

GOOG is going to give MSFT a run for its money in a number of areas but MSFT clearly has a number of footholds that will be difficult to dislodge. A good strategy is to own shares in all three companies.