Why Google should buy Amazon.com

analysis
Jan 6, 20112 mins

Although the thought of this megadeal leaves many scratching their heads, here is why it's a good thing to do

While cloud computing acquisitions are coming fast and furious, few have been the expected megadeals. However, now that 2011 is well under way and the market appears to be bouncing back, count on surprising large business moves. I think one should be Google taking a run at Amazon.com.

What would be the value for Google? Although Google has ventured into few infrastructure services for the cloud computing market, such as storage, customers have largely been passed it over for AWS (Amazon Web Services) and other providers. However, Google has made some good headway in the platform service space, for which AWS has no significant offering.  A combination of these two cloud providers would be mostly complementary.

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Also complementary would be Amazon.com’s ability to drive Google into the retail space, which has been a hobby of Google’s for the last several years, including its recent move into the e-book space. Thus far, Google has had little impact in the retail space, for a variety of reasons.

Moreover, Google’s dominance in the cloud-based productivity application space with products like Google Docs and Gmail would also complement Amazon.com’s offerings. Need more reasons? Oh yeah, Google owns its own payment system, Google Checkout. How about using it to purchase a grill, a book, and storage services?

Finally, Google loves buying companies with smart, innovative people, and there are plenty of them at Amazon.com. I suspect that the intellectual property alone would drive the majority of value in this sort of deal.

The downside of these types of deals would be the government having to approve it and the delays involved. Figure you’ll also have a group of very vocal opponents. Hopefully nobody will remember this blog post and blame me.

This article, “Why Google should buy Amazon.com,” originally appeared at InfoWorld.com. Read more of David Linthicum’s Cloud Computing blog and follow the latest developments in cloud computing at InfoWorld.com.

David Linthicum

David S. Linthicum is an internationally recognized industry expert and thought leader. Dave has authored 13 books on computing, the latest of which is An Insider’s Guide to Cloud Computing. Dave’s industry experience includes tenures as CTO and CEO of several successful software companies, and upper-level management positions in Fortune 100 companies. He keynotes leading technology conferences on cloud computing, SOA, enterprise application integration, and enterprise architecture. Dave writes the Cloud Insider blog for InfoWorld. His views are his own.

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