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The Google Dilemma

The Google Circle…

Google Fiber

Google Fi

Google Wifi Router (launching in Oct)

Google Chrome

Android

Gmail

Allo

Google reverses course on Allo privacy

Here’s the thing: Google’s team initially stated that all conversations of Allo users would be encrypted so that nobody could read them. Moreover, conversation logs were to be stored on Google’s servers only transiently, and Google promised not to assign identities to the logs.

But the developers changed their minds. Now Allo will store all non-incognito messages until users manually delete them. Messages are encrypted between the device and Google servers, yes. But they are stored, so Google has access to all chats in the app. It uses the chat logs specifically to make smart replies more accurate, relevant, and whatever else the company wants smart replies to be.

The Business of Google (GOOG)

From 2014 to 2015 Google’s annual revenue grew over 13%. During that time, revenue from Google websites has comprised a relatively consistent 67 to 68 percent of total company revenue. With the inclusion of the advertising network, Google earns about 90 percent of its entire income from advertising.

While other businesses contribute billions to Google’s income each year, Google makes most of its money through online advertising. Despite the company’s investments in other ventures, that doesn’t appear to be changing any time soon.

I will just leave this here. When Google provided services for free in return for your information, most can understand that trade-off. Now we have another issue. Google is now in the internet service business with both Google Fiber and Google Fi. They are also selling a wifi router. Google is going to be able to paint a very clear picture of users that no other company can imagine. I am not saying not to use Google products, but go into it with your eyes wide open.

Many will reply that they trust Google. I get that, and in fact I even feel okay with the current group running the day to day operations. Don’t forget that Google is a publicly traded company, and a few bad quarters can lead to major changes. Just remember a few years ago when Radio Shack was going through the bankruptcy process we had this…

Bankrupt RadioShack aims to sell 67m customer names and addresses

Now the company is trying to determine how much it will be able to legally sell in an effort to keep creditors at bay. It has decided emails and addresses are probably what it wants to sell, specifically “67 million customer name and physical mailing address files together with any associated transaction data collected by the Debtors within the five (5) year period prior” to its bankruptcy, according to a recommendation by the court appointed fiduciary, Elise Frejka.

Your data is worth a lot of money, and it is worth more when they can connect more dots. Google wants to connect all those dots. This is why we need strict regulation of what can and can’t be done with our data. Without it we are getting closer and closer to the day where your potential landlord, employer, insurer, etc will have the full picture of who you are before they even meet you. How much would Progressive or Geico be willing to pay Google before selling you that insurance? We may soon find out.