Why Google Should Buy Amazon.com
While the cloud computing acquisitions are coming fast and furious, few have been the megadeals that many have been expecting. However, now that 2011 is well underway and the market seems to be bouncing back, count on some surprising large business moves. I think one should be Google taking a run at Amazon.com.
So, what would be the value for Google? Although Google has gotten into few infrasrtucture services for the cloud computing market, such as storage, customers have largely been passed it over for AWS (Amazon Web Services) and other providers. However, Google has made some good penetration in the platform service space, for which AWS has no significant offering. Thus, a combination of these two cloud providers would be mostly complementary.
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Also, complementary would be Amazon.com's ability to drive Google into the retail space, which has been a hobby of Google's for the last several years, including its recent move into the e-book space. But thus far Google has had little impact in the retail space, for a verity of reasons.
Moreover, Google's dominance in the cloud-based productivity application space with products like Google Docs and Gmail would also be complementary and additive to Amazon.com's offerings. Need more reasons? Oh yeah, Google owns its own payment system, Google Checkout. How about using it to purchase a grill, a book, and some storage services?
Finally, Google loves buying companies with smart innovative people, and there are plenty of those guys at Amazon.com. I suspect that the intellectual property alone would drive the majority of value in this sort of deal.
The downside of these types of deals would be the government having to approve it, and the delays involved with that. Figure you'll also have a group of very vocal opponents. Hopefully nobody will remember this blog post and blame me.
This article, "Why Google should buy Amazon.com," originally appeared at InfoWorld.com. Read more of David Linthicum's Cloud Computing blog and follow the latest developments in cloud computing at InfoWorld.com.