Although there has been concern voiced about the Google-AOL deal, some analysts have noted that it is very likely the partnership will, in fact, be forged and that changes for users will follow soon after. “In the grand scheme of things, the opposition from [billionaire investor Carl Icahn] won’t change anything,” said Gartner analyst Allen Weiner.
Find out—in just 15 minutes—how you can create, manage, deliver, and archive documents that drive your business operations, while meeting compliance requirements. Learn how to start enjoying the benefits of document and image processing today in A 15-Minute Guide to Document and Image Processing.
 Google’s plan to buy a piece of AOL for $1 billion has sparked discussion about how the deal might affect users, and even the operation of the Internet itself.The loudest voice in opposition was heard recently when billionaire investor Carl Icahn said the deal was potentially “disastrous” and urged AOL to find a different partner.Others have criticized the plan from a user — rather than a business — perspective. There’s concern that search results will be tainted by the deal, with Google giving AOL’s Web pages more prominence in its results rankings.But beyond the anxiety and criticism, there also is curiosity in the industry about what the partnership could change and how the deal might affect Internet use in a broader, long-term sense.
You’ve Got Gmail One of the reasons that Google might have wanted to spend the money to get a slice of the AOL pie is the Internet provider’s enormous base of e-mail and instant-messaging users, noted Gartner analyst Allen Weiner.The conversion from aol.com to gmail.com as an e-mail suffix would be relatively easy, he predicted, given Google’s technological savvy. Such a move would put Google on par with Yahoo Mail and MSN Hotmail, and make it into a major force that could draw more users.Not only would this give users more choice in the area of free Web-based e-mail and instant messaging, but also Google could pull ahead by folding its content and search capabilities into an e-mail offering.Considering that Hotmail charges users a fee for extensive storage, Google could pull ahead in the market by giving AOL subscribers and other users a low-cost or no-cost alternative that gives them a much broader range of services.”Converting AOL’s users to Gmail puts Google in the vital path of creating a communications layer that allows users to store, subscribe to, and share content,” Weiner said. Video Revolution The deal with Google also could bring changes in the amount of video that is viewed online.Although she did not comment on the deal with Google specifically, AOL spokesperson Ann Burkart did note that the company has been eager to expand its video capabilities, and has inked several deals with content providers recently.”More people are getting broadband every day, and that’s led to a huge amount of interest in videos,” she said. “That’s led AOL to expand the catalog and pursue other ways to broaden what’s offered.”The Google partnership could put significant oomph behind that effort because the search firm could accelerate its play in the business of extending its ad platform to deliver ads through video clips and podcasts, noted Weiner. (continued…) |
