Google in recent months has continued to make news regarding the purchase of other companies. The purchasing of these smaller companies seem to come from all over the place, ranging from application designers to software manufacturers and hardware production specialists.
While it might seem as if Google is just going on a buying spree, it is nothing new in the tech world and is something that is likely to continue to do this. However, to understand why Google is buying a wide selection of companies, it is important to understand why this has happened in the past and why it will continue to move forward the same way.
The first real tech giant that went on continual buying sprees was Microsoft. This software company started to buy all sorts of different software companies during the 1990s and later. Microsoft did this in order to acquire software that would prove helpful and that it could easily integrate into its own current software. Basically, it is often less expensive to simply purchase a program that already has a nice following, or at least is well designed, instead of attempting to design something similar, deal with copyright infringement laws and other issues.
All of this is valuable and can grow the company. Later, Apple started to do the same, although in a different manor. Apple never really bought companies in order to use their software. Instead, it would go under the radar and purchase manufactures of chips and hardware equipment in order for the company to later create patents on the equipment. This way, Apple is able to develop new technology and hardware that other companies are not able to easily replicate. While it does not stray to other programs and different sectors, it is the same basic principle.
A recent purchase war has sprung up between both Facebook and Google. While Facebook is running in a similar manor as Microsoft, buying up other applications and services it can integrate into its social media website, Google is buying up all sorts of different technologies that are all over the place. At first, this might seem like each purchase has nothing to do with one another.
From designing smart cars and purchasing the equipment in order to allow for self-driving vehicles, to smart thermostats to eyewear, Google is buying all sorts of different technology, which is strange for a company that started out as just a search engine. However, when you think about it, there is a method to the madness of these recent purchases. Eventually, your entire ecosystem at home is going to be controlled by Google, and more likely than not, Google is going to stand as the main electronics provider and service dealer within the next few decades.
Google was able to build itself up through its search engine. Search engines collect all sorts of data on users, which allows Google to recommend services to users, based on their search history. This in turn allowed them to create Google Maps, which is now the default GPS direction service out there. By the time self-driving cars is ready for mass production, Google will be at the forefront of this technology, and it can utilize the map system Google built up with its map and GPS service to help individuals drive to different locations, even simply off of searches individuals made on their phones.
Plus, with the purchase of Nest smart thermostat, Google can now control the temperature of the house and different variables, plus home security systems run through the Nest equipment as well. Basically, Google will have the technology to coincide with just about everything you do and interact with in the near future.
Outside of having completely interaction with an individual’s life, companies like Google also purchase products so their competition can’t obtain it. If Apple is interested in a technology, it is for good reason, and Google doesn’t want Apple to obtain it, which would make it a stronger brand and more of a problem for Google.
So, even though Google might not use the content or even integrate it into its overall play, by purchasing the product that Apple wants, Apple is no longer ably to grow its own brand.
Greg Aziz is a freelance copywriter with a Journalism degree from University of Toronto and with over 5 years of experience writing for hundreds of companies from virtually any industry.