Google Enters Instant Messaging and Internet Telephony with Google Talk

Strategic Insights -

Google, the world's most popular search engine, has launched Google Talk, a free instant messaging and internet telephony service that allows text chat and computer-to-computer voice connections. This move is a challenge to internet heavyweights, Microsoft's MSN, Yahoo!, and AOL, and is expected to boost Google's income from advertising on its numerous internet enterprises. Google Talk uses open standards and aims to be a universal communications system, unlike its competitors.

Key Takeaways:

  • Google Talk allows text chat and computer-to-computer voice connections, challenging internet heavyweights like Microsoft's MSN, Yahoo!, and AOL.
  • Google Talk uses the same codec licensed from Skype, but with open standards, unlike Skype's proprietary technology.
  • Google Talk is currently in beta form and available for download on Windows XP and 2000, with Macintosh and Linux compatibility through third-party software.
  • Access to Google Talk is through a Gmail username and password, with calls limited to people in the caller's Gmail address book who are also Google Talk and Gmail users.
  • Google's move is expected to swell Gmail ranks and boost its massive revenue from advertising.
  • Google's shares rose 2% on Nasdaq, hitting $279.58, following the announcement.

Statistics:

  • Google Talk allows free computer-to-computer voice calls, with connection to any telephone available for a few cents.
  • Skype, the current world's most popular internet telephony application, has millions of users who make free computer-to-computer voice calls.
  • Google's revenue from advertising on its numerous internet enterprises is expected to increase with the launch of Google Talk.
  • Google's shares have risen from $85 at its IPO a year ago to $279.58 on Nasdaq.

Sources:

  • [www.google.com/talk/]
  • [NASDAQ]
  • [Gmail website]

Note: Sources are provided exactly as mentioned in the original text.

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