Why We Compete with Google
blogs.zoho.com
Why We Compete with Google
1–10 of 21 posts
Re: Why We Compete with Google
#2From the comment on the original post by the author.
"But a company like Google that has such sky-high margins today will find it hard to stomach to adjust to lower margins. That is my real point."
As far as I know financial statements don't reveal how many people are allocated per business unit ... curious how the author arrived at these numbers for the profit margins. How does Zoho plan to adjust to its own decreasing profit margins? Does Zoho believe that the off shore development cost advantage will last forever?
Re: Why We Compete with Google
#3"Now it is clear why we compete with Google. Google is perhaps the most stunning technology success story ever, but we simply don’t believe Google has the rational business incentive to get too deep into the business/IT software category. The lower revenue and profit per employee figures would be tolerable if there were huge growth opportunities there, but when very successful companies like Adobe and Intuit pull in revenues well shy of a Yahoo, when even the enterprise software leader SAP is smaller, and slower growing than Google (Google makes nearly as much in profit per employee as SAP or Oracle Salesforce make in revenue per employee), it is fairly clear this market is not going to make a material contribution to Google’s growth and profitability objectives. So what is Google’s plan here? It is fairly obvious they are in it to put Microsoft on the defensive on its home turf, so that Microsoft’s offensive capability in the internet is diminished. It is also perfectly clear why Microsoft wants to be an internet player - as Google has shown, it is a higher margin business even than its monopoly-profit core business."
Re: Why We Compete with Google
#4That is the worst logic I've ever seen. Loosely translated:
"Microsoft makes hit tons of money, both per employee and overall, a huge chunk of which comes from their Office products. Google makes slightly more money per employee, but far less overall, none of which comes from their Office products.
Therefore, Google would not want to succeed in the Office space. Why? Because Adobe doesn't make all that much."
Huh? I'm just going to assume, since the poster's name is Sridhar, that he actually just doesn't speak English well enough to express his thoughts coherently, because it is either that or he doesn't have them.
Re: Why We Compete with Google
#5wtf! am i lost or does this blog post make absolutely no sense?
Re: Why We Compete with Google
#6That is the worst logic I've ever seen. Loosely translated: "Microsoft makes hit tons of money, both per employee and overall, a huge chunk of which comes from their Office products. Google makes slightly more money per employee, but far less overall, none of which comes from their Office products. Therefore, Google would not want to succeed in the Office space. Why? Because Adobe doesn't make all that much." Huh? I'…
(The you read the Innovators Dilemma? They argue this point very well..) The logic goes something like this, as companies grow, they tend to move from lower profit margin businesses to higher profit margin businesses. Each company needs a specific profit margin over their overhead costs to justify investment of resources. Google with find it hard to invest in lower margin Office Suite business.
> 2. I'm just going to assume, since the poster's name is Sridhar, that he actually just doesn't speak English ...
Thats generally a wrong assumption, I have lived in India all my life, and >70% of my communication is in English. I am pretty sure everyone at Zoho uses English at Office
Re: Why We Compete with Google
#7That is the worst logic I've ever seen. Loosely translated: "Microsoft makes hit tons of money, both per employee and overall, a huge chunk of which comes from their Office products. Google makes slightly more money per employee, but far less overall, none of which comes from their Office products. Therefore, Google would not want to succeed in the Office space. Why? Because Adobe doesn't make all that much." Huh? I'…
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Re: Why We Compete with Google
#8That is the worst logic I've ever seen. Loosely translated: "Microsoft makes hit tons of money, both per employee and overall, a huge chunk of which comes from their Office products. Google makes slightly more money per employee, but far less overall, none of which comes from their Office products. Therefore, Google would not want to succeed in the Office space. Why? Because Adobe doesn't make all that much." Huh? I'…
The logic is that Google, whose Internet cash cow probably has more milk left in it than Microsoft's Office/OS cash cow, is already more profitable per employee than Microsoft, so its incursion into the Office space is not a serious quest for higher margins but rather a tactical move made primarily to put Microsoft on the defensive. It makes perfect sense.
Not knowing anything about you or your startup, I will nevertheless go out on a limb and guess that Sridhar Vembu's English is better than your Hindi, and that his fully bootstrapped startup's $40 million in revenues and $12 million in profits [1] puts it in better financial condition than your business.
Try to open your mind and learn something from the man behind one of the most successful fully bootstrapped tech businesses in the game today. Most entrepreneurs wouldn't consider going up against both Microsoft and Google with no investment backing, but Vembu saw an opportunity, took a big risk, and is now in a position to reap sizable and well-deserved rewards.
[1] http://www.forbes.com/technology/2008/02/22/mitra-zoho-india...
Re: Why We Compete with Google
#9That is the worst logic I've ever seen. Loosely translated: "Microsoft makes hit tons of money, both per employee and overall, a huge chunk of which comes from their Office products. Google makes slightly more money per employee, but far less overall, none of which comes from their Office products. Therefore, Google would not want to succeed in the Office space. Why? Because Adobe doesn't make all that much." Huh? I'…
(The you read the Innovators Dilemma? They argue this point very well..) The logic goes something like this, as companies grow, they tend to move from lower profit margin businesses to higher profit margin businesses. Each company needs a specific profit margin over their overhead costs to justify investment of resources. Google with find it hard to invest in lower margin Office Suite business. > 2. I'm just going to…
Wow, way to cut my sentence off and attack it. How does this get voted up? Read PG's article about how to argue.
Also, Office is an incredibly high-margin business. Google isn't moving into it because they don't expect it to return cash if it succeeds.
Re: Why We Compete with Google
#10That spreadsheet FROZE my browser as it loaded.