How does Google make money?

The other day someone asked me how Google makes its money. At the time I called upon the knowledge I had and talked about the ads they have in the search results, the Chromebooks and Android systems they are selling, and Google Apps and Docs.

This week Google announced, it was disappointed with its 27% rise in revenues. Yes you read right, it was disappointed! Profits were up 6.4% and revenues 27%. In the same period, (the last quarter of 2011) Microsoft saw its revenues rise just 5%, and its profits fall by 0.15%!

Here is the interesting (weird) thing, Google’s share value fell 10% after the announcement, whilst Microsoft’s grew by around 2%! How crazy.

Anyway, this got me thinking, what are all the way Google makes money, as that is a lot to get just from the ways I mentioned.

How does Google make money?

The fact is, the majority of Google’s revenues come from the ads it presents to users on search result pages. However in recent years it has started making more and more money in other ways. So what are these other ways Google makes money?

Chromebooks

Introduced mid last year, Chromebooks are laptops powered by Google Chrome OS, where the laptop and the internet are one. There are no programs, desktop or start menu, the who experience runs from the cloud, utilising all Google’s (and other) online applications.The Google Chrome Logo

Samsung and Acer are the two firms which currently offer Chrome OS powered laptops, however expansion to more brands in the future is inevitable. Samsung and Acer obviously take their share the sales, as will Amazon and the other places Chromebooks are sold, however the laptops do make money for Google.

Android

I assumed that Google made money from Android, however I was wrong – Google does not make money from its Android mobile operating system. Android is a Google-led open source mobile OS framework, however Google does not profit from it.

Google Android's Logo

YouTube

Since Google bought YouTube in 2006, the site hasn’t been that profitable for it. YouTube is now the site with the third most traffic on the web, meaning that it has huge potential, however until recently, it was only making money from ads.

Before Google AdSense ads used to appear alongside videos, which they still do, however now they also advertise within videos too. Furthermore, YouTube have started offering online movies, which users can pay to watch from the comfort of their own home – or wherever they are.

Google Storage

Many Google services offer online storage, however this is only a finite amount. Should you want to purchase extra storage for Gmail, Google Docs, Picasa or Blogger (photos on blogger, not posts) then you can do so from Google Storage. I doubt this brings in Google a lot of revenue, but nerveless, it makes the internet giant some money.

Google Store

Google have an online store which distribute to may different locations around the world. They sell everything from branded keyrings and juggling balls, to t-shirts and even accessories with past Google Doodles printed on them.

DoubleClick, AdSense and AdWords

The majority of Google’s revenues come from the advertisers who use AdWords and DoubleClick. These ads are then either shown in the search results, or on websites which host AdSense units. Google makes lots of money out of ads. It doesn’t tell AdSense hosts what cut of the advertisers fees they get, but it makes Google a lot of money, so I would guess that they take home more than website owners hosting their ads.

Other Ways Google Makes Money

These are not the only ways Google makes money, other ways include, Google Apps for Business, Google Cloud Connect, Google Docs, Feedburner (through ads), Google Earth Pro, Google Mini (where you effectively buy the Google search engine to use on your own site/intranet), Google Checkout and more.

Hopefully this gives you some insight into just how many ways there are that the search giant that is Google makes money.

Top Christmas tech 2011

What is your favourite bit of tech from 2011 that will be making its way onto your Christmas list? That is if you don’t already have it!

This year has been a really busy one for the tech industry, it would seem that every year, the technology industry gains more pace and steams on ahead. For a great example of this look at cloud computing, this is an industry that has been around and major for less than 5 years, yet it is also an industry that has exploded.

Out of this industry, new firms like SugarSync and Rackspace have emerged, proving to be very profitable. In addition to this, existing firms like Google and Amazon have widened their inventory with the likes of the Chromebook and Amazon’s Web Services.

So, back to the topic in hand…

This year has seen the launch of the iPhone 4 and later the iPhone 4S, LG’s and Panasonic’s new HD and 3D TV sets, the iPad 2, Amazon’s Kindle Fire, Chromebooks, Nintendo’s 3DS, the 6th generation of the iPod Nano, the Samsung Galaxy Nexus, the HTC Sensation 4G, and many many more bits of cool tech.

Google Chromebook, Amazon Kindle Fire, Samsung Galaxy Nexus, Apple iPhone 4, Nintendo 3DSThe thing is which is the best? Which tops your Christmas list?

Given the chance I would love to at least try all of the above, but that’s not going to happen for one simple reason: money. The value of all the new bits of tech released this year mentioned above, is probably around the £5,000 mark, meaning that the average Joe is not going to be able to afford them all. This leads me onto another question, which is best value for money?

I have heard a lot of praise for the Kindle, as being very good value for money, whilst a lot of bad PR surrounding the 3D TV’s mentioned.

So, the questions. What’s your favourite, and why? Which do you think best value for money and do you want any for Christmas?

Hopefully next year with a bit of growth, we will be able to have a competition to win some/all of the above! Stick with it 😉

Cloud services are the future

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Rackspace – a leading cloud hosting provider, has recently commissioned a study in association with the centre for Creative and Social Technology (CAST) at Goldsmiths University of London to look into how cloud services have really changed the way we work and play in every aspect of our existence.

The study has revealed that 66% of British people are using cloud based services every day!

The research that has come from this study reveals that (without being fully aware of it) a significant 66% of British users are relying on cloud computing services every day! Check out the image below to see some cool facts and figures relating to how us British use cloud services.

Facts about how British people use cloud based servicesSome of those facts are truly amazing. Almost 20% of people store more that 500gb on ‘cloud’ servers – that’s half a terabyte! My hard disk is a terabyte, and I have currently only used around 250gb of it, (one quarter) therefore that is double what I have on my hard disk, online!

The thing is, crazy figures like this are to be expected as internet speeds rise, disruption decreases and convenience increases. According to Ookla, today, the UK’s average download speed is 11mb/s (megabits – which are 8 times smaller than megabytes) and the USA has an average speed of 12 mb/s. Pretty fast. Upload speeds are a bit lower, with an average of 2mb/s in the UK and almost 3mb/s in the USA.

Other slightly less developed countries like India however have download speeds of just under 2mb/s and upload speeds of around 1mb/s. This is obviously not as good, however still pretty respectable in comparison to the dial-up speeds we used to get, where we couldn’t use the phone at the same time, and were restricted to 56kb/s!

These faster global speeds are making cloud services much more accessible and useful. Cloud technologies are the future, and the introduction of things like iCloud and the Chromebook just seem to reaffirm that.

What’s your view on the above image, is it shocking or to be expected?