Amazon Entering Online Fields Coveted by Google
5. Google TV concerns
As mentioned, Google plans to break into the entertainment market with the Google TV service. The software, which will run on set-top boxes and other devices, will offer users the ability to watch television shows, movies, and search the Web. Amazon won't provide all that, but it will offer an alternative entertainment platform. And it's entirely possible that if it's successful, hardware won't be far behind it.
6. Enterprise focus
Amazon might be best known as an e-retailer, but the company is a fine enterprise services provider. In fact, it delivers cloud storage, Web advertising, and a business platform for companies that want to sell products on its site. Meanwhile, Google is continually trying to infiltrate the enterprise with its own lineup of enterprise Software as a Service offerings, including Google Apps for Business. It won't be long before the companies start battling it out more directly in that market. For now, it seems that Amazon has an attractive slate of online services for many companies.
7. The hardware business looks appealing
With streaming services coming soon, the Kindle selling well, and the iPad continuing its growth in the tablet space, it's not a stretch to say that Amazon will focus more of its efforts on the hardware market going forward. Since Google offers Android OS and soon, Chrome OS, the company has a vested interest in seeing its partners' hardware succeed. With Amazon also competing more in that space, the market will only become crowded. Thus it could be difficult for Google to enjoy the kind of success that it hopes to achieve.
Google is the top Web advertising company in the world. So far, no other company has even come close to matching the firm. But Amazon's Clickriver ads service is compelling. The company's offering allows companies to "match services to products and to content on Amazon.com and other premium Web sites." It's highly focused. But it has the potential to be extremely profitable. Google, a company that's always looking for advertising opportunities, may take issue with that.
9. Size matters
Size matters in the tech space. The big firms do well, while the small firms need to find areas where they can compete. Both Google and Amazon are major companies, meaning no firm has an advantage over the other. Google might be more successful in the advertising market, but it can't compete with Amazon in retail. And both firms have vast reserves of cash to expand their operations. In other words, expect a battle between both of those Web giants.
10. Consumer trust
Consumer trust has helped Google become such a success so far. People know that when they use a Google product, they will enjoy an experience that potentially matches or bests the competition. Aside from Apple, Google hasn't been faced with another company that enjoys such trust. But it could with Amazon. The online retailer is a major force in cloud computing resources, it's a key player in the e-reader market, and it has its sights set on several new spaces. All the while, consumers trust it.
Get ready for a big fight between Amazon and Google.