Google is now an ICANN-accredited registrar of domain names,
providing it with yet another potential line of expansion and further
fueling speculation that it will soon expand into the web hosting
The hugely popular and resourceful search engine is approved to sell
names in seven top-level domains (TLDs) including .com, .net, .org,
.biz, info, .name and .pro.
Domain registration, combined with the already operating a free blogger
service, and its huge user base would be a potentially lucrative market
for domain names and Web hosting. Additionally its other beta services
such as gmail and Google News allow for even further expanasion
Over the last year, significant reductions in domain name prices have
been spawned by the use of domains as marketing tools to attract new
web hosting customers. Industry leaders ÃƒÂ¢Ã¢â€šÂ¬Ã¢â‚¬Å“ Hostway, Yahoo!, and
Interland , as well as most medium and small web hosting companies,ÃƒÂ¢Ã¢â€šÂ¬Ã¢â‚¬Å“ are selling domains as low as $3.95, but none are accredited
registrars. Instead, they work as resellers for firms such as Go Daddy.
With prices as low as they are, domains names have, in most cases,
become a losing financial situation, but are seen as a cheap and
effective way to attract hosting customers. The low loss on a domain of
a couple dollars, versus the pay-per-click cost of buying the keyword “web hosting” on Google Adwords or Overture, which can run three to
four times higher.
While competing with their customers may never have crossed Google’s
mind, the simple economics of Web hosting will necessitate a different
approach. Google could easily give up the number 1 advertising slot to
market a Google Web hosting package. Additionally, Google could simply create a new ad unit that rests at
the very top of the page, preserving all existing advertising slots.
Adding thousands of new hosting accounts each month will quickly
generate millions in recurring revenues for Google. Yahoo! did this a
few years ago with astounding success.
A great hosting company needs to stave off DDOS attacks, worms,
viruses, and a litany of other hacker-induced mayhem. It also needs
super-fat redundant pipes to handle all the traffic, and the additional
mandatory goodies like physical security, fire suppression, and backup
generators to maintain 100% uptime. Google has been protecting a
premier Web property from hackers for the last 6 years. With their
experience in data centers and knowledge of redundant connectivity, the
financials already exist.
Gmail! Okay, so they messed up a little with the whole privacy/big
brother issue. They’ll get past that. The point is that Google knows
email. Even with the throttled launch and invitation-only system of
Gmail, they probably already have more email customers that most
hosting companies. This gives Google 2 more clear reasons to get into
hosting: they can handle email as well as anybody, and they have a huge
email list to which they can market their service. Many customers
register a domain name and set up a hosting account mainly to have the
email address that they want, such as firstname.lastname@example.org. The ability
to process and manage a high volume of email while excluding spam,
viruses and other security exploits is a mandatory skill set for
Why Will Google’s Web Hosting Product Reign Supreme?
*According to a article on Sitepoint
It’s pretty much a given that Google will launch a Web hosting product
at some point. But how will they crush Yahoo! (and every other Web host
out there)? Here are a few points on which Google trumps its nearest
– Google brand versus Yahoo! brand. Winner = Google. Google is regarded as cutting-edge and is closely watched. Yahoo! has repositioned itself within the market and is not the tech leader is used to be.
– Google’s execution versus Yahoo’s execution. Winner = Google.
Google’s awesome tactic of launching full blown, fully developed
products as ‘beta’ tests overcomes the pressure and scrutiny of
conventional product launches. Plus, they’re just really good at
executing Web-based technology.
– Google’s reach versus Yahoo’s reach. Winner = Google. By some
accounts Google now accepts 70% of all Web searches each day. Unless it
stumbles, Google will keep growing at Yahoo’s! (and everybody else’s)
– Google’s synergies versus Yahoo’s! synergies. Winner = Google. Google
bought Blogger, and it already knows and understands how to attract,
market to, and partner with content builders. Google’s AdWords and
AdSense products are already in use by well over 150,000 individual
Websites. Google has made a science out of knowing which markets are
searching for what, and where they go to find it.