Fair enough.. being a one trick pony ain't so bad as long as you can maintain your market share.
So is that the general consensus then?
Google is going to build tonnes of businesses then that they feed AdWords into?
It's a powerful conclusion, I'll give it that.
Basically it means that they can build something and give it away for free as long as it generates AdWords income to pay for it.
The more AdWords opportunities they develop, the more people will bid to get to the top of of the AdWords bid list, which makes it more profitable for them to embed their AdWords into free aps.
Basically the system feeds itself... cool idea.
I guess this is why Bill (or was it Ballmer?) are talking about the shift to free software supported by ads.
Still though, I can't imagine I'd run software with ads in my face all the time. I can't give up that kind of screen real estate, plus when I'm working, I have no desire to be distracted by marketing material.
So I think it's somewhat questionable that model is going to play out, though we shall see. It would be interesting to see how much GMAIL makes for Google and if it covers its costs.