Thursday, January 20, 2011

Change of command in Google

Change of command in Google. The technology firm surprised Wall Street with an unexpected change in its management team. Larry Page, one of its two founders, will be in April with the position of CEO, a position currently held by Eric Schmidt, who shall at that time CEO. Sergey Brin, the other founder of the browser, will focus on strategic projects.

In this way, Google seeks to unify further work of Page and Schmidt, and simplify the management structure of the company. The goal, as explained by the acting Chief Executive Officer, is to "accelerate" the process of decision making. Something you need to view how to progress their new competitors, especially Apple and Facebook, with the intention to avoid a situation like Yahoo and Microsoft, which have been clearly taken down the process of adaptation to new Internet-based technologies.

Page and Brin are older and do not need adult supervision Schmidt, who spent a decade taking the reins of the Mountain View giant. "Larry Page is able to lead the company," said Eric Schmidt in a statement. Earnings above expectations The announcement overshadowed the presentation of year-end results.

The increase in advertising revenue and new business, such as cellular telephony, enabled Google to close 2010 with revenues of 29,320 million dollars. The search engine of search engines, operator of the Android operating system for mobile devices, scored a profit of 8,500 million compared to 6,500 in 2009.

Specifically, in the fourth quarter, Google revenues of $ 8,440 million (compared to 6.675 million in the same period the year before), exceeding even what I expected the floor. Google controls 65% of searches made in the network in the U.S., according to research firm ComScore. Larry Page stressed that the results show the successes of Google so far, and he learned "many lessons" under his leadership to help you exercise your new role.

The gradual improvement of the global economy is materializing in increased demand from advertisers for appearing in the powerful search engine, the undisputed market leader. That enabled Google to increase its advertising revenue significantly. Although analysts on what they are set now is the increased contribution from other lines of business in the accounts of the company.

Google does not want to be left behind. Therefore it is making significant investments to enable it to exploit the mobile advertising market and which opens through its video portal YouTube. The strategy has already begun to have a visible impact on net profit of the company. Another thing that draws attention to Wall Street is the rate at which they are hiring new employees.

Google shares rose 5% in the last three months, half the Nasdaq index average, the market traded in the Silicon Valley giant. Investors still underestimate its ability to compete with Apple and social networks like Facebook. And that translates into volatility, as seen during the day before the publication of the results at the end of Wall Street.

Changes in HP were also changes at Hewlett Packard. Four members of its board of directors left the company for the way he handled the dismissal of Mark Hurd last summer. In return, enter five new directors. Investors are clearly unhappy with the current team and company performance. Among the new members are Meg Whitman, former CEO of eBay.
Posted by Manlio Gandolfi at 11:56 PM

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