The general stickyness for search and Internet services is relatively low compared to what many analyst believed in 2000. Search is the primary service offered by Google and the ads related to search constitutes a major part of the Google’s revenue. But even though “to google” made it into dictionaries around the world, it’s quite easy for me to type in snap.com instead of google.com. Other services such as e-mail (and to some extent online applications like spreadsheets etc) is a lot more sticky, but the related ads are still a small part of Google’s revenue.
So would this make Google’s position weak? Not today, but just because they are obvious choice today does not mean it will always be so. But they have an enormous momentum, and innovation and excellence is the primary driver for Google’s success, which is where their strengths are. I would even go so far as to say that the future success of Google is is entirely up to how they continue to nurture the creative, and innovative culture they have created, attract top of the crop skills, ….
So what does that tell me as an Entreprenour and investor (and maybe tech savvy as me)?
That as long as my companies can provide good and excellent services, even for small niches (see the Long Tail), there is room for my company between the Googles and Microsofts of the world. But I need to make sure they are innovative, and always on edge, and I need to be focused on skills, skills, skills and that the skills are happy and enjoy their work.