May 31, 2006 4:02 PM PDT

Google: No Web browser plans

update Google executives said they have no plans to build a browser and downplayed threats from Microsoft's new advertising system and plans to bundle search into the next version of its operating system.

Following complaints from the investment community that Google doesn't offer enough insight into the company's business and strategy, Google executives on Wednesday held a live question-and-answer Webcast with analysts.

Asked if Google would consider developing its own browser, as has been speculated for some time, Chief Executive Eric Schmidt said, "We would only do so...if we thought there was a real user benefit."

Google makes decisions on what products to develop based on what users want and not on what rival companies are doing, he said. "The industry is obsessed with this browser question. And our observation is you have a number of good browsers now," including Firefox and Apple Computer's Safari.

Got views on Vista?

In response to a question about how Google executives feel about the possibility of losing revenue to advertising customers who may jump ship to Microsoft's new AdCenter, Schmidt predicted that the impact of the competition will be either neutral or positive to Google's business because it will likely encourage even more people to buy ads who aren't already doing so.

"Microsoft entering the market undoubtedly will influence some people to enter the market," he said. "Yahoo and Google will be beneficiaries of more motion."

As far as Microsoft's plan to integrate search into the Vista operating system, of which Google has previously been critical, Schmidt said, "There is a lot of opportunity for Microsoft to change what they're doing based on customer feedback...We want to make sure that the use of the power of Windows is done in a correct and legal way."

Google's partnership with Dell, announced last week, was in no way formed as a response to competition from Microsoft, Schmidt said. Under the deal, millions of Dell PCs will be preloaded with the Google toolbar for Web and PC search, along with a co-branded home page.

"We are ecstatic over the Dell deal," he said. "We did a six-month test because we wanted to test various components of how people would react from an end-user perspective to an integrated offering." Google found that users liked it.

"The thing that distinguishes the Dell deal is its comprehensiveness," Schmidt said. "We obviously would like to do deals like Dell if they test out well."

Asked if the company would consider buying companies rather than just partnering to get more customers and broader distribution of its products, he said no.

"M&A (mergers and acquisitions) as a method to acquire traffic has not historically worked," Schmidt said. "I wouldn't rule that out, but it's unlikely that in and of itself we could just buy customers...It's a bad business strategy, and it's not consistent" with Google's philosophy.

Meanwhile, Google is not planning to create a service that would compete with shopping Web sites by allowing consumers to shop from aggregated merchants for things like iPods, cell phones and furniture, as analysts speculated, Schmidt said.

A report released Tuesday by Bear Stearns said: "We understand that Google has contacted some testers recently to run a beta on a new program that allows the testers to shop from 'high quality merchants'...This could be pretty significant, as Google could be using this program to test for large sellers, a way to dump inventory into Google Base, and potentially create an eBay Express/Amazon like experience for buyers."

But according to Schmidt, "we have been working to automate the advertiser cycle. The moment the customer wants to purchase something we want to make that as fast as we can" by building a "payment system that would enable that, but not the kind of payment system that would result in what you are describing."

Asked why Google is working with EarthLink to cover San Francisco with wireless Internet connectivity and also offering Wi-Fi in Silicon Valley's Mountain View, Schmidt said that making sure people have access to high-speed connections will increase the company's business.

"From the very beginning at Google we understood that customers who move from narrowband to broadband are heavy users of Google" and are more likely to click on ads and make purchases, he said.

Google wants to serve as a catalyst and model for the industry to spur the spread of broadband deployment, Schmidt said.

"Lesson one is we are going to do it with partners. Lesson two is that the hardware is moving quickly forward," he said. "We do not yet have an answer to the question which is the obvious question of what are the limits to an advertising-supported model."

Asked what the company's biggest success story has been, Jonathan Rosenberg, senior vice president for product management at Google, pointed to the integration of Keyhole technology into Google Earth and the ad-based business the mapping has driven. The disappointment has been Google's "offline print efforts," he said, under which Google is selling ads for use in print publications. "That probably hasn't taken off as fast as we'd like."

Asked about how the company plans to gain market share in China, a market dominated by local search company Baidu.com, Schmidt said, "It's too early to call that question for many months...Things don't occur in a month or two, even in China."

See more CNET content tagged:
Eric Schmidt, Google Inc., Web browser, Microsoft Corp., operating system

Add a Comment (Log in or register) 9 comments
Browser!
by computerman822 May 31, 2006 11:05 PM PDT
Google dose need to build a browser! I like google than microsoft. Google should have their own Operating System too. Google knows more about security than microsoft. We want a google browser! Google Rocks!
Reply to this comment View reply
Google needs to Expand
by nirmalsudan June 1, 2006 5:14 AM PDT
There are three vital things that Google can do to topple microsoft in 3 steps:
1.G-Office , google's version of Office suite
2.G-systems, Google's new open source Operating System
3.G-Server, Google new Server Operating system.

End Result: Microsoft no longer exists by the Year 2020.
Reply to this comment View reply
Google sucks so does Microsoft :(
by free_people June 1, 2006 11:44 AM PDT
What is the real difference between Google or Microsoft? Nothing, they are both Big corporations who want to take over one market after another to the determent of people (businesses) worldwide.
To say there is a real competition and difference between Google & Microsoft is like saying that there is real competition and difference between Exxon & Chevron.
Which is a meaning less competition and difference as far as the public is concerned.
I mean who gives a squat whether Exxon has top market share selling oil at $3 per Gallon or Chevron has top market share selling oil at $3 per Gallon.
The same nothing competition and difference is what exists between Google, Microsoft & Yahoo. That is the cost of advertising on Google is as high as Yahoo and MSN, acually even higher.

The only reason I guess Google rocks in the minds of some dorks is because of the Adsense where 1000s of web site owners who have nothing to sell, are making money off Google Adsense = Click fraud.
Reply to this comment View reply
Powered by Jive Software
advertisement

Latest tech news headlines

Resource center from News.com sponsors
Aligning CIO & CEO visions
What CIOs need to know

It's a simple truth. The closer you and your CEO see things, the greater your chance for success. Our exclusive report can help you get there—and help your business grow. To get the report, featuring the views of 765 CEOs on innovation. click here

Click Here!
What CEOs think: Innovation Insights for CIOs

Learn How CIOs can deliver strategic success for their enterprises

The New CIO: Beyond Technology

Learn how CIOs become heroes

Podcast: Chris Gorog of Napster

Learn about the impact of technology in strategy execution

The future of the Enterprise

Read more about tomorrow's organization

RSS Feeds

Add headlines from CNET News to your homepage or feedreader.

More feeds available in our RSS feed index.

advertisement

Inside CNET News

Scroll Left Scroll Right
  • Nanotech: The Circuits Blog

    Intel ships low-power chips for servers

    New server chips from processor giant draw as little as 12.5 watts per core.

  • Gallery

    Photos: Top 10 reviews of the week

    Here are CNET Reviews' 10 favorite items from the past week, including the TiVo HD XL, Sony Cyber-shot DSC-H50, and the Dish Network's newest digital TV converter box.

  • Speeds and feeds

    Clever commercial, Comcast...but you're wrong

    Cable company is taken to task over a misleading advertisement about how its high-definition programming compares with that of satellite TV provider DirecTV.

  • Coop's Corner

    Chris Shipley 1, Internet lynch mob 0

    Demo's impresario goes public with a tart and smartly written riposte to the shoot-from-the-lip crowd.

  • Video

    Katie Couric reflects on first Webcast

    The political conventions are over and so are CBS Evening News anchor Katie Couric's first series of Webcasts. CNET's Kara Tsuboi sat down with Couric on the final night of the Republican National Convention to discuss what she liked about Webcasting, some of her most memorable guests, and whether TV news will still be around by the next round of conventions.

  • News - Digital Media

    Want top search results? Tread carefully

    In the business of promoting Web sites to top search results, some push limits to find what tricks are allowed. But there's evidence the trade is getting more respectable.

  • Video

    YouTube plays party politics

    During the presidential campaigning four years ago, YouTube didn't even exist. Now it's a tool candidates must master to get their message across. CNET's Kara Tsuboi stops by the YouTube upload booths at the Democratic and Republican conventions to find out why Google's video site has such a big presence in Denver and St. Paul, Minn.

  • News - Gaming and Culture

    Say Where brings voice recognition to iPhone apps

    Forthcoming iPhone app from Dial Directions aims to give users a way to get information from sites like Yelp, MapQuest and others by speaking instead of typing.

  • News - Cutting Edge

    Execs predict next Google-like tech

    On eve of company's 10-year anniversary, researchers and business pundits speculate about what technologies might someday have as much impact as Google.

  • Gallery

    Images: The art of 'Spore' prototypes

    Will Wright and his Maxis team worked on dozens of prototypes to test the elements of their soon-to-be-released evolution game. Here's a sampling.

  • Planetary Gear

    Porsche Cayenne S Transsyberia to debut in Paris

    Limited edition SUV has a distinct nod toward Russian customers.

  • Green Tech

    TI does energy efficiency on a chip

    Its line of Piccolo microcontrollers can reduce power consumption significantly of home appliances, hybrid cars, LED lighting, and even solar panels.