Google CEO Eric Schmidt talked about computing in the cloud in a recent interview. Following is an excerpt from that interview:
Bartiromo: Mm-hmm. And, of course, Google has been getting all these newkiller apps, whether it’s Gmail or Maps or, you know, spreadsheets.Ultimately is the game to compete direct, head on, with Microsoft?
Schmidt: Well, Google is actually trying to be an innovator, and we’realways concerned about competition. We have found that if we can simplyinvent a brand-new product that really solves a problem that really doesmatter to you, we can get your business, we can get your attention, we can getyour traffic and your customers or what have you. We’re trying in a new thingcalled cloud computing to offer very powerful Web services that do the commonthings–e-mail, word processing and so forth–where the data’s kept in thecloud, it’s kept by somebody else, it’s managed by professionals. You don’tneed to worry about where you keep all that information. We like that model alot. We’re getting traction. It is a competitive threat to other companies,but we think it’s a technological breakthrough.
Bartiromo: What about the corporate customer? I understand that there aretests going on right now. What are you hearing from that customer?
Schmidt: We’re working with the corporate customers to do the same thinginside their networks as we do with consumers. Now, corporate customers arenot the same thing as consumer customers. Corporate customers have a muchhigher need for reliability, so we’ll sign an agreement that guarantees acertain level of service. But then we charge for it. So that’s a case wherepeople are willing to pay for something which is free without the level ofreliability. They also have other needs. They need greater security, for allthe obvious reasons. And they also need better integration with all of theother services that their companies have. This is a long process. It’s not afast process. But it’s very deeply valuable. And those customers we willhave for 20 or 30 or 40 years as they build into our model. We like thatmodel. It’s an enterprise play. It’s a business that I’ve been in for a longtime, and one which will ultimately be very, very lucrative through Google.