Google gathers information for its cloud-based network by collecting almost any data connected to the Internet and through an expanding array of "sensory organs." As this storehouse of information grows, so do the potential correlations that can be made within it and the value it has to a wide range of users and buyers. Google will increasingly be able to predict trends as well as to understand the metadata (data about data) that is common in vertical industries, such as healthcare and financial services. These capabilities position Google to assume and maintain a dominant position as information broker and transaction intermediary in a wide range of industries.

Google's value proposition — and ultimately its business success — depends heavily on avoiding punitive, manipulative or discriminatory use of its information resources. The company's motto, "Don't be evil," is a commercial success factor for the company, not just a nice sentiment. Whatever threats to individuals or social groups might arise from misuse of Google's resources will probably come from outside actors or rogue employees.

What Google Can Do

Google has the potential to significantly change market dynamics in many information-based service industries, including healthcare, financial and professional services, education, and government. The company's high share of Internet search is the basis for success in every vertical industry, as well as future impact in areas such as infrastructure services. Google can rapidly make an essentially unlimited number of connections between events, people and circumstances without prior planning. Clearly, this capability has important social, political and commercial implications.

As per Google's success in online search, the industries that Google will target next are highly fragmented, with a large pool of consumers and a generally inadequate level of automation to deal with multifaceted consumer needs, industrywide.

Google's massive infrastructure and the development of cloud-based delivery mechanisms will soon impact the cost, complexity and politics of corporate IT operations. In many enterprises, Google has already become a part of the "stealth" IT organization; in many more, collaboration is increasingly based on Google applications.

There are significant security and privacy issues that must be overcome for many enterprises to trust Google's services. We expect that Google will seek definitive external certification in the approach to these issues during the next one or two years, which will be a clear signal of the company's intent.

What Google Can't Do

Along with other Internet-based businesses, Google operates in an uncertain privacy environment. Regulatory changes could define personally identifying information (PII) and its acceptable uses in ways that would impact Google's commercial prospects.

Google's public comments about its security and other risk control efforts generally assert high levels of capability without specifying in detail how those capabilities are achieved, which will be important for many potential enterprise customers. As with all enterprises, a key threat to Google's security is the potential for malicious insider activity. It is uncertain to what degree Google expects the obscurity of its undocumented platform to provide security benefits. It is only a matter of time until Google is forced by large enterprise customers to undergo some sort of independent security audit or evaluation that is more stringent than the Statement of Auditing Standards (SAS) No. 70 Type II reviews announced to date by the company.

Conclusion

The whole of Google's potential is greater than the sum of its known parts. Google is disruptive, and disruptive technologies produce big winners and big losers. Potential "good" effects of Google's capabilities include economic expansion and reduction of barriers to entry for a wide range of players in many industries. Potential "bad" effects could involve systematic misuse of Google's resources by a third party for criminal or political gain.

In a service economy, knowledge is a critical asset, and Google has more knowledge than anyone in history. In our opinion, anyone who is not taking advantage of Google's offerings soon will be fighting an inherent disability.

Our advice: Don't bet against Google — but don't be careless. Commercial buyers, in particular, should be careful about which enterprise services are based in Google's cloud infrastructure. The company's commercial intentions will ultimately be demonstrated by an increased commitment to transparency — or not.

The real question is: What can you do with what Google knows? We suggest that readers become familiar with Google's applications and capabilities and then start to use them, while considering how Google's knowledge can be turned into your own insights.

All enterprises, especially those in service industries likely to be targeted by Google, should watch the company closely and use its services when the risks are clearly manageable.