Google is playing the long game and it’s hard to argue
Until recently I never paid Google a dime for anything. I had a nest once b4 Google but just replaced it. I was using mostly OpenAI models, I have a custom family domain with Microsoft Exchange and we had the annual M365 sub for like 100$ per year for word excel etc.
I then got hooked on AI Studio, then Gemini CLI with VSC and then AGY. I found myself using Gmail, switching to Workspace from MSFT, stopping my O365 and buying YouTube premium and Google AI Pro.
Then May 19th happened and I started to think maybe I need to step back. I just went from $0 to $960 a year with Google. Now I’m looking at adding another $900 for $1800 year for my family of 3 because Pro isn’t cutting it and need the new Ultra $100 plan. Wait, and I was convinced by a googler to drop using AGY IDE and pair AGY 2 with free cursor as my daily driver along with AI Studio, Stitch, Gcloud, Firebase, etc.
So it occurs to me, Google is thinking about ARPU with consumer, prosumer, and enterprise. They know exactly what their target ARPU is per customer type, their CAC for each, their investment and return. I guarantee it.
And I’ll probably fall for it. $2000 a year for a family of 3. And now I have to explain to the wife that blue bubbles are going away when I switch to android from iOS.
On the flip side as Berkshire Hathaway says, invest in what you like and use. So hopefully that investment of $100k in stock will help offset the annual costs with gains as Alphabet wins the long game.
Well played.