Inside Google+ — How the Search Giant Plans to Go Social, article. "Google+" is a new social net working site Google is starting, and it's a huge betting, "orders of magnitude more investment, in terms of people, than any previous project".
It almost beggars belief that the king of the search — the most successful internet business ever, with $30 billion in yearly revenue — would be running scared by the social networking trend led by Facebook, a company that barely rakes in a few billion. Nonetheless, people at Google feel that retooling to integrate the social element isn’t a luxury. It’s a necessity. As early as last August, I asked Gundotra whether he felt Emerald Sea was a bet-the-company project.
“I think so,” he replied. “I don’t know how you can look at it any other way.”
Personally, I think it's a mistake, a typical fear-driven mistake.
Say you make shoes. And there's a big fad for jackets. And you say: "oh no! We have to change the company to make jackets, or we're doomed!"
People will always need shoes, and if you keep making good shoes that people like, you'll continue doing fine. You may have to up- and down-scale a bit along the way as the waves go, but if you just run things by sound and conservative economic sense, you're a winner in the long run for sure.