Valleywag
Google trumpets its legions of PhDs, exorbitant benefits, and 20-percent time for side projects as incubators for innovation which produces its industry-leading software. So why is Google acquiring Postini, makers of enterprise communication security products, for $625 million? Because 20-percent time is a myth: Few employees use it, and those who do mostly waste it on cute tech indulgences, not credible and profitable business-class products. And because Google's developer expertise is specialized and consumer-focused, not enterprise-ready.
As Google tries to penetrate the business market with its expanding array of web-based apps, enterprise-level credit and capabilities are required. Google already licensed Postini products, but that reflected well on Postini, not Google. The shortest and cheapest path to respectability with CIOs is through acquisitions — not more hiring, not more free time to "innovate." Google has become the GE of the tech world — using a pumped-up stock price to buy its way into markets. Google's human-resources PR-speak about innovation may be good for hiring, but when it comes to producing real products and real results, nothing beats Google's enormous wallet.
