News Corp. Not Competing w/ YouTube?
A few highlights from Schmidt:
In fact, News Corp. COO Peter Chernin and I had a long conversation about this. Before the announcement, Peter explicitly told me that this was not a competitor to YouTube. To me, it’s another effort to get the content out. . . .
Google’s architectural model around broadband and services plays very well to the powerful devices and services Apple is making. We’re a perfect backend to the problems they’re trying to solve. And Apple has very good judgment on user interface and people.
It doesn’t have the data centers, though. What it has is a manufacturing business that’s doing quite well. We can provide great services. The obvious example is the iPhone, which will come with Google Maps installed.[On data centers] It’s pretty clear that there’s an architectural shift going on. These occur every 10 or 20 years. The previous architecture was a proprietary network with PCs attached to it. With this new architecture, you’re always online, every device can see every application, and the applications are stored in the cloud.
There are a few very large ones, some of which have been leaked to the press. But in a year or two, the very large ones will be the small ones. That’s where a lot of the capital spending in the company is going. . . .
Think of [Google] first as an advertising system. Then as an end-user system — Google Apps. A third way to think of Google is as a giant supercomputer. And a fourth way is to think of it as a social phenomenon involving the company, the people, the brand, the mission, the values — all that kind of stuff.
For a tiny peek into where Google’s going, check it out.