Tuesday 11 October 2011

Doing Business: Need for improving regulations & Empowering Entrepreneurs!

You have to give it to Google. It never ceases to surprise the world with its seemingly unorthodox style of operations. Be it their oh-so-cool work atmosphere, strategic marketing tactics generating tons of hype even before the product launch, the fascination with Beta launches, and last but not the least their acquisitions and business deals.
google energy approval 300x252 Google Energy ? Commendable Foresight Or Crazy DiversificationGoogle manages to pull out rabbits out its hat with such uncanny frequency that most of the times, the rest of the marketplace cannot predict what is going to come next. However, what is more interesting is that even after so many products and acquisitions, Advertising revenue continues to remain the Bread and Butter for Google.
However, with the dynamics of the marketplace changing, Google off late has gotten into a little diversification. The diversification though till now has been more from a “Seeing Beyond Internet Search” per say than monetization models. Android (OS) and now its own phone Google Nexus bear testimony to the fact that Google is indeed
diversifying itself in tune with the market.
But, then a OS and a phone still may not be termed as unthinkable products from someone who has ruled the Internet like very few have. But, how about a Technology company getting a license to BUY and SELL energy.
Google Energy, a wholly owned subsidiary of Google has received federal approval Google Energy to buy and sell energy on the open market
It is interesting to note that Google had applied for authorization from regulatory body to allow Google Energy to “act as a power marketer, purchasing electricity and reselling it to wholesale customers”.
Now , Google made it clear that they ventured into the energy domain to be able to have more options for the way it powers its data centers. Google needs quite an amountful of energy to operate its resource hungry data centres. With Google Energy, Google will have more control in terms of energy supplies for its operations. Google already uses innovative ways to cool its data centres without electricity.
However, with a license that allows them to both buy and sell electricity on the open market, will Google shy away from making Selling Energy a part of its product portfolio. Well, there has been no indication as of now of Google launching a new business model but then with Google I would not be surprised.
From the looks of it, Energy costs and supply pressures are already a burden for businesses and more so for someone in the domain Google operates in. The future only promises to make energy even more costly and limited, so Google might have put its money where it should have. A classic case of foresight to optimize the costs and control energy supply pressures.
But, should Google Energy be used as a Business entity, would it mean Diversification gone too far. A technology company diversifying as an Electricity marketer sounds even more weird than the crazy Satyam – Matyas acquisition which made headlines last year.

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