The end of Google Wave and rumors that the company is building a Facebook competitor has a lot of people talking about Google's need to get better at social. Fortune's article on Google's future growth last month, apart from highlighting absurdity a company becoming "too successful," speculates as to what Google will need to do in order to continue growing in the future. The article's authors dismiss Google Apps for Enterprise and move on to sexier fair, discussing what Google needs to do to be more "social." But it's clear that Google has big plans for the enterprise. First, of course, because Eric Schmidt has said so, but also because of the various steps the company is taking.
Why should Google focus on the enterprise instead of social networking sites? As pointed out by box.net's CEO Aaron Levie, enterprise IT spending dwarfs online advertising spending. The $79.4 billion budget for federal IT spending alone is more than three times the $24.2 billion spent on online advertising in 2009, making Google Apps for Government look like a very smart business venture.