Google to Offer Instant Messaging and Voice Communications on Web
By JOHN MARKOFF
http://www.nytimes.com/2005/08/24/technology/24google.html?pagewanted=print

SAN FRANCISCO, Aug. 23 - Google, the Internet search innovator, will make
its first direct challenge to the broader communications industry on
Wednesday when it introduces an instant-messaging and voice communication
service for personal computers.

The program, Google Talk, will allow its users to exchange text messages and
converse through their computers with others at remote locations. Other
instant-messaging services offer similar capabilities, but Google said the
appeal of its system would come from its voice quality, based on audio
technology it has developed.

As with other Google product introductions, the company has not linked the
new service with a plan for making money, saying only that it was likely to
look for revenue opportunities in the future.

But the planned introduction is the clearest evidence yet that Google has
vast ambitions to move beyond its Web search roots and create a company
spanning the full range of digital information.

"This begs the question of what Google defines themselves as," said Allen
Weiner, an Internet analyst at Gartner, a market research firm. "I believe
they're now a media company whether or not they want to admit it."

In choosing to compete directly with the three major providers of instant
messaging - AOL, Microsoft and Yahoo - Google has chosen a standard known as
Jabber, which has been widely embraced by proponents of open-source
software.

The three major messaging services are largely islands that do not permit
their users to send messages to and from competing services. But there have
been reports that the Jabber open-source organization is preparing to
interconnect with AOL, which is the largest provider of messaging with its
AOL Instant Messenger system, known as AIM.

More than 80 million Americans used instant-messaging services as of July,
according to comScore Media Metrix. Of those users, 41.6 million used AIM,
19.1 million used Yahoo Messenger and 14.1 million used MSN Messenger.
Although comScore does not track Jabber users, Peter Saint-Andre, the
executive director of the Jabber Software Foundation, cited estimates by
Osterman Research, a research and analysis firm specializing in messaging
and digital collaboration, that 13.5 million use the Jabber standard.

A Google executive said the company was hoping to use the Jabber standard to
interconnect the messaging industry. "We are going to start working to
federate all the other networks," said the executive, Georges Harik, a
product management director who is responsible for Google Talk and several
other services.

At the start, Google Talk users will be able to exchange text messages with
users of other Jabber-compatible software - including Apple's iChat service
and EarthLink - but they will be able to converse only with other Google
Talk users. (Google intends to make its voice technology interoperable with
other systems at a later stage.)

Google plans to link availability of its instant-messaging service to its
e-mail service, Gmail, currently in public testing. The Gmail service will
now be made generally available, and a Gmail address will function as a
user's instant-messaging identity as well. Users can sign up for both
services at google.com/talk; a mobile phone number must be entered as part
of a measure to keep spam operators from stockpiling addresses.

At present, Mr. Harik would only say that there are "several million" Gmail
customers, but he would not disclose a precise number. He said that Google
saw its entry into the communications world in the context of a corporate
mission of organizing and making all of the world's information accessible.

"It is important that you be able to find information, but it is also
important that you be able to communicate it," Mr. Harik said.

The strategic shift is certain to change both the way Google's competitors
and its partners view the company, which has quickly come to be a dominant
force in both the advertising and Internet world. For example, AOL is still
a significant Google partner for search results, but Google Talk is a direct
competitive threat to the messaging world that AOL now dominates.

Moreover, analysts expect Google to move quickly beyond instant messaging to
add other voice and communication services, meaning that it is likely to
compete against other providers of voice-over-Internet phone service like
Vonage and Skype as well as communication industry giants.

That may lead to the creation of competitive barriers that Google has not
previously faced.

"It will be interesting to see if other companies try to shut them out,"
said Benjamin Schachter, an Internet analyst at UBS Securities, of which
Google has been a recent client.



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