Thursday, June 2, 2011

Search Is Google’s Castle, Everything Else Is A Moat

Warren Buffet famously describes the best businesses as “economic castles protected by unbreachable ‘moats.’” Search is Google’s economic castle (perhaps with other forms of online advertising such as display thrown in there), and everything else is a moat trying to protect that castle. Android is a moat. The Chrome browser is a moat. The Chrome OS is a moat. Google Apps is a moat. These are all free products, subsidized by search profits, that are intended to protect the economic castle that is search. Gurley goes further and says not only does Google build moats around itself, but then it scorches the earth surrounding the moat...

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