We tend to think of Google as a consumer-facing company, and rightfully so: advertising, primarily from its core search product, still accounts for more than 95 per cent of total company revenues. Nonetheless, it has started to gain limited traction in the massive enterprise market: other revenues, mostly from enterprise products, made up about 4 per cent of total revenues in the first quarter.
As we discuss in a recent note, Google has the potential to be a serious player in the enterprise market, but its growth prospects are limited by the company’s DNA. Google builds highly scalable, frictionless systems and, as a result, it has only entered markets that are a natural outgrowth of its consumer-focused businesses.
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