Ballmer Calls Google Employee Growth Insane

Bloomberg News (in this case via the Seattle Post-Intelligencer) attributed to Microsoft CEO Steve Ballmer a statement from a speech that Google's pace of employee growth is "insane." And he might be right that the company is adding too many people too quickly - it takes time to get people up to speed and working productively.

However, he also apparently said the following:

"They're still really one business, and it's a search and advertising business," he said. Google's other efforts have been "cute," he said.

That is an ironic remark from Microsoft, 80% of whose income is in Office and Windows, and that's what makes it ultimately vulnerable. If there isn't a big enough uptick on adoption of new versions of their software, suddenly the revenue dries up. Yes, Google seems to be going in many directions, but I think that instead of being scattered, those attempts actually do have a single focus of providing certain kinds of services to customers, which will make for a loyal following. And when you have a devoted audience, you have the chance for a good business.

Thinking back on the dot com bubble, many of the companies made mistakes that to some of us seemed obvious at the time. You can't have a successful business that thinks the concept of revenue is old-fashioned. However, there's an even more proven concept: the money will come if you do well by your customers.

Instead of writing Google off as a one trick pony, let's remember how big and varied a business advertising is. By acting as a conduit to willing people, Google now offers a vital outlet to companies in many industries, giving it a potentially more secure foundation than virtually any other single company. Or is Steve Baller ready to say that advertising agencies, broadcast and cable networks, specialty printers, and print publications are all one-trick ponies because they all depend on advertising?