Why,Google,Pays,Billion,USD,It technology Why Google Pays 10 Billion USD to Its Competitor Mozilla?
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To Make Google as the default search engine,Google and Mozilla will renew the cooperation agreement at around 10billion USD. In the case of haveing their own web browser "Chrome",Google's cooperation with Mozilla is understood as a kind of supportto their competitor with their money. But Why?On one hand, Firefox still has millions ofusers and this agreement means that millions of users will use Googleas the default search engine when they are using Firefox. And usingGoogle to search means Google can display ads and that means money toGoogle.But 3 billion per year, that is 3 times morethan the price in the agreement they signed in 2008. What'sinteresting is that Google released Chrome after they signed theagreement in 2008. From a common point of view, with the raise of theChrome's share in web browser market, they should reach an agreementat a lower price. Although Firefox still takes up 1/3 of the webbroswer market, their share is going down and the reason is Chrome.Chrome is like a beast in the market ofbrowser, it is swallowing the share of IE and also Firefox at thesame time. Actually, according the the data from StatCounter,Firefox's share in browser market is lower than 2008. Think about it.Aug, 2008, 26.08% of people were using Firefox as their browser,68.91% were using IE and at that time, Chrome was not released byGoogle. Last month, 25.23% of people were using Firefox as theirdefault web browser and 40.63% of them were using IE. Chrome took25.69% of the market. It's true that more people are choosing Chromeas their default web browser than choosing Firefox.So Google will pay 3 times money, whileFirefox's share in browser market is lower than 2008. Why they dothat?The first reason comes to my mind is thecompetition. Because of the bid. Microsoft wants Bing become thedefault search engine of Firefox. And it is really interesting thatYahoo also takes part in the bid and Yahoo's search engine is fromBing. So one reason is that Google spend money to let Microsoft andYahoo out of the game. It's possible.Microsoft spends billions of USD to try tocompete with Google in search engine market. One of the result ofthis is that Google and Bing swallow Yahoo's share in search enginemarket together. Now Bing provides the result of Yahoo's searchengine, so Bing hurts itself. Nowadays, Bing and Yahoo take the samepercent of the search engine market share and Bing is paying this.Here I have to say that Bing and Firefox's cooperation is do usefulto Bing. Let's say that Bing know that and when they talking aboutthe cooperation, they are not cheapskate, but they are not thatgenerous and will pay 3 billion a year. Because from the marketshare, 3 billion is a little crazy.So why Google still pay this high price toFirefox? Analyst said that compare with the income from displayingads through Firefox and competition with Bing, avoiding the problemof anti-monopoly after Chrome's share continue growing is the realproblem Google cares.It's not crazy, actually if now it is notthe reason, it will be the reason in future. So far, it is relativelysafe for Google's browser market in anti-monopoly. They are not likeMicrosoft and Apple, Google can not control the default browser inany kind of operation system. However, the problem will become moreand more serious with the large download of Chrome from google.comand the success of Chrome OS. I think there will be a larger pressurefrom mobile devices. Now, web browser on Android devices looks like anormal browser, with more and more element from Chrome are added toit. It will become the real Chrome some day. That means Google has a dominant operationsystem (Android) to promote their web browser. That will bringinvestigation from anti-monopoly just like Microsoft few years ago.But if Google pays money to support Mozilla and Firefox, it's anotherquestion. Let's wait and see. Article Tags: Default Search Engine, Search Engine Market, Google Pays, Default Search, Search Engine, Using Firefox, Browser Market, Were Using, Engine Market
Why,Google,Pays,Billion,USD,It