Boiled down, Google’s business strategy is simple: Get more people online more of the time.

As the world’s dominant search engine, every time someone does a search, Google makes money. For every minute the average user spends online, X percent of their time is spent searching. Hence, the more time a given user spends online, the more time they search. The more they search, the more money Google makes. It’s that simple. Seen through this lens, you can find the logic in just about every business move Google makes — Particularly the push for SaaS and smartphone mobile. The more people use software as a service, the more time they spend in the cloud (ie.: online) vs on the desktop = Google makes more money. The average smartphone user spends X times more minutes using their phone to go online, than does a non-smartphone user. Raise smartphone adoption as fast as possible = Google makes more money.

With both Google and Apple leading the way, the push will be to decouple the carriers from the hardware business and turn them into commodity data providers. Data as utility service. Both will be embracing mobile VoIP apps, especially in urban centers where WiFi is approaching ubiquity. Anywhere WiFi is free, your connection is free (look for Apple to add a mic, and begin offering VoIP apps on the iTouch).

The achilles’ heel of Apple’s business right now is being out of the search game. A GooglePhone is just one more example of how they will leverage their search position to undermine all of Apple’s other business units. Long term it may be existential for Apple to get in the search game (Microsoft sure thinks it is). Why is anyone still speculating about the use of that mysterious 500,000 sq. ft. $1B East Coast data-center Apple has under construction in North Carolina? (Just up the road from Google’s major East Coast data center… see map)

Apple = A | Google = B –> http://tr.im/map_AtoB

Nice article, David. Always enjoy a good conversation. FYI: Tish Shute directed me to your article as a “must read.”

cheers,
Chris