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Google started off as yet another Internet search company in the 1990s. It is not until recent years has Google begun to offer additional software products and services to Internet users. Google’s creativity is not simply limited to the innovative products offered, but more importantly on its perspective and definition of customers.

Knowing how the convenience of Internet has allowed software pirates to run amok, Google treats the Internet users as inventories to be sold to business entities - the real customers. This means that Google offers all of its products to regular home users for free, while only charges business users through advertisements or other forms of services. The most ironic part about this innovative business model is that it is not innovative at all. Many companies have already integrated elements of advertisement into free software in the past. However, none of them were ever this successful. Why?

For example… Once considered the potent archenemy of Windows Media Player, Real Player became an instant debating topic among angry users when it first integrated GAIN advertisements into the media player. This short-term advertisement income was immediately followed by an exponentially shrinking user base. The Real company name was soon considered a synonym of spyware.

On the other hand, Google is not as greedy when it comes to advertisement. In fact, Google knows its users so well that it is able to make friends with them. Limited and unobtrusive advertisement has allowed Internet users to accept Google as a “do no evil” company. This in terms allowed the creation of a rigid user base with royal customers, who are willing to share their experiences with families and friends.

Google’s creativity is not limited to advertisement alone. It sometimes makes such creatively bold moves that even bystanders would sweat over its decisions. One of such example is the announcement of Gmail’s free POP3 service. When a user receives emails through POP3, all contents remain intact as advertisements are not inserted in the actual email. However, what Google gambles on is that users need a good search engine to quickly and accurately locate an important information among gigabytes of past conversation. Google’s search engine in the web version of Gmail is able to provide exactly that.

Google has ended another year with advertisement profits in the billions. Analysists say Google’s overpriced stock is worth every penny, what do you think?

Google has setup a good paradigm for software companies to look up to. This can potentially be a new trend for future software companies - offer products to users for free and only charge businesses who are willing to pay.