Search and online advertising offer limited upside for Google at this point. Sure, they can still contribute significantly to Wall Street’s expectations, but they won’t be sufficient to fuel the sort of growth Google needs to maintain the reputation it’s developed over the past decade. The company’s expansion into personal and enterprise applications shows that there’s a need for new revenue streams. This is the impetus for Google products that could wind up replacing some segments of the market where IT VARs operate.

VAR Client Implication: Some of Google’s apps won’t go the distance. Google Docs, for example, has had trouble gaining anything more than niche adoption. When reviewing alternatives with IT buyers, be sure to discuss the implications of a free solution that may not be supported in the medium term. This is a serious issue from an IT risk management standpoint.

Previous installments in this series:

Alert: Five reasons to watch Google in 2010 >>

Google is trying to replace — not enter — the market >>

Small and medium-sized businesses, especially, are becoming comfortable with nebulous apps and services >>

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