Authors: S.Ramakrishna & Sanjib Dutta,
Research Associate, Senior Faculty Member,
ICMR (IBS Center for Management Research).
This move by Google has had an impact on even some of the Indian players like rediffmail.com, sify.com and indiatimes.com and they had to increase the storage space for their email users. Since its launch, Google has further increased the free space in Gmail to 2GB. As Mr. Gaurav Chadha, Business Manager - NIIT (Knowledge Solutions Business), says, "The most obvious differentiator that Google is building in its email services is space maximization. And the reaction from its main competitor - Yahoo - testifies to the trend of growing hunger for space. |
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Google has been generating enough revenue from its Ad Words, Ad Sense and Gmail service. It is even gaining from ads appearing in Gmail. Its IPO has been successful (Refer Exhibit IV) and that is good news for the company as well as the investors. Recent reports suggest that Google wants to increase the storage space in Gmail from 2GB to 10GB. Once this happens, the competitors Yahoo and Hotmail will be left in a quandary.
They are already struggling to keep pace with the fast and vast Gmail. That will further diminish their power in the market. Also, the space will allow users of Gmail to store millions of messages and retrieve them from any part of the world. In the years to come, Google can expand its business horizon by developing its own operating system, thus challenging Microsoft's top position in the global software market.
Exhibit IV
Rising Stock Price