To understand the business side of things, it is important to
remember that Google makes the vast majority of its revenue from search.
Google’s web properties generated advertising revenues
of $8.8 billion in Q4 2012 alone. Google doesn’t release exactly how
much it makes from Android, but I don’t believe they make even close to
$8 billion from it annually, let alone in one single quarter (as they do
from web-based advertising).
Android has been a relevant strategy to give hardware makers a chance to compete with Apple.
But as we can see from various market developments, it appears the
hardware vendors now either want to forego Android and minimize their
dependence on Google, or create their own solutions entirely. I’m thus
convinced that Android as we know it today will look very different — if
it exists at all — five years from now.
This is where Chrome and Chome based hardware comes in.
Chrome Hardware
Right now Chromebooks are still in their infancy. They’re rapidly developing and getting better with each generation, but I don’t believe they’re even close to Google’s bigger vision. The Chrome web app solution is getting more apps but not at a level or pace necessary to gain a critical mass relevant for the mass market. This is where Android and future Android app development will play a role.
Right now Chromebooks are still in their infancy. They’re rapidly developing and getting better with each generation, but I don’t believe they’re even close to Google’s bigger vision. The Chrome web app solution is getting more apps but not at a level or pace necessary to gain a critical mass relevant for the mass market. This is where Android and future Android app development will play a role.
Google has a large global developer base for Android but not yet for
Chrome web apps. Chrome is designed to run only apps developed for the
web, where Android is designed to run apps that are installed. Once
these two development environments
merge, developers will be able to design both Android and Chrome web
apps with the same set of tools, consistency and unified application
stores. Google, with its expertise in cloud services, could bring a
cloud-based virtual Android environment to Chrome, perhaps giving us the
ability to run Android in the browser, seamlessly, on all Chrome
hardware.
The other benefit Android brings to Chrome is an environment built
for touch-friendly applications. Google just released its Chromebook
Pixel, which is a touch based Chromebook. The only problem is there
aren’t really any touch-based Chrome web apps. Android is built for
touch, and those assets will bring value to touch-based Chrome systems
down the road.
The Future of Chrome Hardware
What this ultimately leads to is new Chrome-based hardware. Right now, Chrome OS is stuck in a clamshell, PC-like form factor. The merging of Android into the Chrome OS solution could open the door to Chrome OS-based phones and tablets as well. As we know, the Chrome OS solution allows for extremely low-cost hardware because of how light a client it is, which means that a Chrome-based solution for phones and tablets could conceivably lower cost barriers.
What this ultimately leads to is new Chrome-based hardware. Right now, Chrome OS is stuck in a clamshell, PC-like form factor. The merging of Android into the Chrome OS solution could open the door to Chrome OS-based phones and tablets as well. As we know, the Chrome OS solution allows for extremely low-cost hardware because of how light a client it is, which means that a Chrome-based solution for phones and tablets could conceivably lower cost barriers.
This seems hard to imagine now, especially given that in China
you can purchase an Android tablet for $45. Regardless, Chrome and
Android merging would do more for hardware solutions than if the two
remained separate.
The Browser
This merging of Android and Chrome has traditional browser-based value as well. The Chrome browser runs on all Windows PCs (with the exception of Windows RT), Macs and even iOS devices. What if Android — and more, importantly Android apps — could be used from within any Chrome browser on any device? This would drastically increase the potential reach of Google’s services across the computing spectrum.
This merging of Android and Chrome has traditional browser-based value as well. The Chrome browser runs on all Windows PCs (with the exception of Windows RT), Macs and even iOS devices. What if Android — and more, importantly Android apps — could be used from within any Chrome browser on any device? This would drastically increase the potential reach of Google’s services across the computing spectrum.
Since Google makes so much of its revenue from search, they need to make sure their search and web based
assets remain front and center on all key hardware platforms. As
companies like Samsung, HTC, Sony and even Amazon or Facebook look to
take Android further for their own benefits, they take them further from
any benefit to Google. Google knows its search being front and center
runs the risk of being usurped by those looking to use Android for their
own benefit and not necessarily Google’s.
Google must be aware of this, and the merging of Google and Chrome OS
will give them more opportunities to keep their services front and
center. Google first bought Andy Rubin’s Android, Inc. and used it to
drive new growth for themselves and others. I view this merger as if the
Chrome team just bought Android and will now use it for further growth.