Google is working on its most ambitious project to date, the creation
of a global data transfer network that could effectively serve as
a private Internet.
Since the introduction of AdWords three years ago, Google has become
the world's largest media company and advertising vehicle. It has
grown to rival Microsoft in scope and scale. The process has made
it a fully globalized corporation.
Google has an estimated $7billion in the bank and employs many
of the brightest brains in IT. It also has a reputation for being
one of the best tech firms in the world to work for and has been
known to use that reputation to headhunt intellect from its rivals.
It is focused on the burgeoning Chinese market and appears to be
performing better there than its chief rival Microsoft is. Google
has the obvious capital and intellectual resources to do just about
anything it wants to.
There are a number of reasons backing speculation that Google is
building its own global digital communications network. Google has
formally entered the telecom business with the release of a VOIP
client known as Google Talk. VOIP is an acronym for Voice Over IP,
which is a synonym for Internet telephone. In order to provide this
service Google has had to acquire technical and physical resources
that, along with other assets held by the company, point to the
construction of an alternative Internet.
As Microsoft has so ably demonstrated over the past twenty-five
years, there are a number of profitable ventures found in a space
monopolized by a single mega-corporation. If that is the path Google
is taking, building the infrastructure to capitalize on it would
be considered the crucial but difficult first step. Over the past
ten months, Google has been purchasing a large quantity of redundant
fiber-optic lines, (commonly referred to as dark-fiber), in cities
around the world. This fiber was laid during the boom years of the
late 1990's but left surplus after the dot-com crash in 2000. Speculation
about Google building an alternative Internet has been circulating
since early January 2005 when Google started buying and accumulating
lots of dark-fiber.
Telecommunications industry news-source Light Reading today reported
on some of Google's recent real estate acquisitions. Google is leasing
large amounts of floor space in or near major telecom interconnection
facilities such as the recent leasing of about 1/10 th of the rentable
space at 111 8 th Ave in New York, one the world's largest telecommunications
interconnection hubs. It is also said to be in negotiations for
large amounts of space at enormous co-location centers (known as
carrier hotels ) on the west coast, with the goal of linking Google's
North American and Asian networks.
In early 2005, Google began issuing RFP notices to relevant tech
firms for the development of a DWDM fiber optics network. The RFP
process ended earlier this month and Google is now reviewing bids
from multiple tech vendors. Google is said to be planning to first
establish a network in North America and then connect it with similar
networks established in Europe and Asia . The construction of such
a network could give Google the ability to deliver multiple branded
media such as music, video, online telephone and other Internet
services to every home in the United States .
DWDM (Dense Wavelength Division Multiplexing) is a technology that
exponentially increases the carrying capacity of fiber optic cables.
According to an article in yesterday's IPMedia Monitor (sub req.),
only a handful of the largest telecommunications providers operate
commercial DWDM networks. A small number of private DWDM networks
exist but few are large enough to need such capacity.
Google's need for bandwidth capacity is increasing rapidly. It
currently pays the traditional telecom firms like AT&T who own
the long-haul fiber lines a premium for bandwidth. Building its
own data transfer network could be seen as a cost savings solution,
especially as it could cost as little as $100million (in new spending)
to construct one. Google already owns fiber throughout North America
and around the world. It just needs to connect it all together.
Once connected, what could Google possibly do with a homebrewed
state-of-the-art fiber-optics system? It could develop the kind
of exclusive branded environment AOL originally dreamed of. It could
capitalize on its recent innovations to provide life-service technologies
such as Google Talk (VOIP) and interactive information resources
such as local search alerts and the delivery of news, video and
music files.
According to the IPMedia Monitor article,"... those who have
reviewed the RFP say that Google's plans extend far beyond cost-saving
motivation, with an architecture that puts a Google-controlled hub
deep within all major metro areas."
Google's stated goal is to organize the world's information. A
big part of that goal is to turn a profit while doing so. Google
turns a very tidy profit each quarter but has long been seen as
too reliant on one form of income, paid search advertising. Google
draws between 90 - 95% of its revenues from paid ads. The development
of a Google operated data transfer network would give Google any
number of ways to expand the number of productive revenue streams
from 1 to 1+ more.
Then again, Google has always prided itself on its ability to organize
the world's information and provide it free of charge to its users.
The cost of Google's services is bourn by the advertisers. Google
might simply be exponentially increasing its online real estate
inventory by enticing hundreds of millions of new registered users
to take a look at whatever it is they are creating. Assuming it
is the coolest thing on the block when released and is faster and
cheaper than its competitors (as most of Google's new products tend
to be), many of those new users will choose to stick around to use
the services offered by a Google branded network.
Google appears to be preparing to become the world's greatest data
delivery vehicle. Perhaps this phase of Internet history will be
summarized with the neo-business aphorism, "If you can't beat
them and you can't join them, you can just make your own reality
and make lots of money over there."Google has $7big in the
bank, much of it being investor money. From all accounts, it is
preparing to light up and connect millions of miles of dark fiber,
starting in North America possibly as early as the first quarter
of 2006. Today we wire America . Tomorrow we wire the world. On
Saturday, we'll do bunch .
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