Monday, August 16, 2004

Google's IT Partner Revealed

Back in May when Google first filed its S-1, I suggested that the third-party service provider to whom Google was planning to outsource its billing, collection, credit evaluation, and AdSense tracking, might make a good investment. (Note, this was not intended as investment advice; rather as a suggestion that the partner company would likely benefit handsomely from a contract with Google.) At the time of the initial filing, the partner remained unnamed. In the latest amendment to the S-1, the partner is revealed as Bertelsmann AG. It would appear that the Arvato group, a division of Bertelsmann, is the service provider. I'll include an update when I get confirmation or clarification that the Arvato group is indeed the partner.

Given that the recently-revealed third-party is part of media giant Bertelsmann, betting on the future of this diversified company based on the Google deal is a bit extreme. Nonetheless, it's a positive sign that Bertelsmann has invested in acquiring the technology know-how and infrastructure for implementing and tracking the functions associated with online publishing and e-commerce. Increasingly, these are critical functions that every publisher must incorporate into its portfolio of expertise--either through inhouse competency or via an outsourced partnership.
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