There’s speculation that Google may be toying with the idea of entering the CRM market. With Google Apps gaining traction in the enterprise, some observers think a CRM app might make sense for the search giant.
Google hasn’t even hinted at the idea, so where do such thoughts come from? Likely it’s sheer curiosity. Google is sitting on hordes of cash, is actively acquiring companies, and many observers are trying to figure out what Google might scoop up next. CRM software is so far an untouched vertical for Google.
“Google is still enthralled, much like Netscape was, with the enterprise market. So if Google is going to go into the enterprise, CRM would be a logical place for them to jump,” said Rob Enderle, principal analyst at the Enderle Group. “But for the type of company Google is, the more effort they put into the enterprise market, the more exposed they are going to be — and the more likely they are going to end up like Netscape did.”
The Netscape Comparison
Why does Enderle draw the Netscape comparison? Because, as he sees it, Netscape made the mistake of going after enterprise business before consolidating control of its base revenue. Although Google does have control of its base revenue, the best possibilities of new revenue for the company are in consumer-oriented and advertising-based products. Google Apps may have gained some traction, but enterprise revenues are largely insignificant compared to Google’s consumer-facing business.
“If Google moves over to CRM, which is solidly business, the advertising-revenue model probably won’t work because the people don’t want their opinions or information shared,” Enderle said. “In that product class, Google is on a hard path to a traditional software model, and that is a model that Google is not set up to embrace yet.”
Could Google build out its own CRM…