Will google squish the web 2.0 startups?
Looking through a recent article, please don't squish the startups there seems to be some worry that google, yahoo and MSN's free service model with threaten smaller innovative online collaboration firms.
I am not sure this will be such a problem. There have been many that debate the economics of "free" but I don't see any business model that involves free services and support. That is because that is where the true value lies, in the support.
The ability to get hold or a real support person that will fix your problem and let you get back to business is the true measure of any business critical service. If you cannot get support when you need it, then you cannot rely on the service for your business.
This can be seen in a number of ways. For instance, people are not willing to tolerate endless computer driven prompts and they would prefer to talk to a real person as soon as possible (see gethuman.com). Then even when you get a person, you want to make sure you have a quality person that can help you. This can be seen in the backlash against call centers that are in different countries. I don't think this is related to any racismm but rather people with a similar culture are easier to deal with. If the person supplying the support or services understands your business culture, the whole process is far easier.
A recent example of this is that Apple has recently changed its mind about setting up a call center in India (see cnet) and it has high ratings for its support compared with others.
The bottom line for business is that quality support and services will never and can never be free or even "cheap". For a business situation, you need a level of quality and assurance that you will be supported and served. Google will never squish this need no matter how many advertising based office or collaboration applications they roll out. Business is interested in lower the costs but if there is a risk that it will result in a drop of productivity then the interest will soon disapear.
My advice to Web 2.0 firms closing their doors is focus on the support and services they provide. If you can provide high quality services, then your business will always be solid.
I am not sure this will be such a problem. There have been many that debate the economics of "free" but I don't see any business model that involves free services and support. That is because that is where the true value lies, in the support.
The ability to get hold or a real support person that will fix your problem and let you get back to business is the true measure of any business critical service. If you cannot get support when you need it, then you cannot rely on the service for your business.
This can be seen in a number of ways. For instance, people are not willing to tolerate endless computer driven prompts and they would prefer to talk to a real person as soon as possible (see gethuman.com). Then even when you get a person, you want to make sure you have a quality person that can help you. This can be seen in the backlash against call centers that are in different countries. I don't think this is related to any racismm but rather people with a similar culture are easier to deal with. If the person supplying the support or services understands your business culture, the whole process is far easier.
A recent example of this is that Apple has recently changed its mind about setting up a call center in India (see cnet) and it has high ratings for its support compared with others.
The bottom line for business is that quality support and services will never and can never be free or even "cheap". For a business situation, you need a level of quality and assurance that you will be supported and served. Google will never squish this need no matter how many advertising based office or collaboration applications they roll out. Business is interested in lower the costs but if there is a risk that it will result in a drop of productivity then the interest will soon disapear.
My advice to Web 2.0 firms closing their doors is focus on the support and services they provide. If you can provide high quality services, then your business will always be solid.
posted by ian connor at
11:45 PM
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