Today, Google purchased Skybox Imaging, a company that uses small satellites to transmit high-resolution images from space. One would think that this acquisition will be only used to enhance their excellent Maps, however there are various other reasons for this purchase. Google paid $500 million for this start-up. Before we address the other reasons, lets address why this acquisition can take Google Maps to a whole new level.
Currently, Google Earth and Maps use satellite images from a variety of sources, much of which are out of date. Zoom in on Google Earth or Maps, and I’m sure you will find the old Yankee Stadium, the old building on your block, or your neighbors un-renovated house. Skybox will allow for not only updated images, but higher resolution images. Also, the skybox will be able to “capture the globe” three times a day. I’m sure you have seen the Google maps car driving around your neighborhood mapping the world with their state of the art 360 cameras, so starting soon look out and up for google mapping.
Another reason why this acquisition makes sense is because Google will be cutting out the middle man for their satellite images. This is a similar vertical integration that we saw from Zara. Also, google can now sell the data they get from their new Satellites, going from a buyer to a supplier.
Lastly, and possibly most importantly, Google can use these satellites to deliver Internet signals from the sky. Google has experimented with beaming internet through hot air balloons, to create large signals. The Skybox will allow them to bring internet to areas where there previously wasn’t internet, and will help with disaster relief, by providing internet connection to storm destroyed locations.
Recently in the news we’ve seen an ambitious push by tech-giants Google and Facebook to invest in Internet connectivity from the sky. It is believed that satellites and drones are going to serve as incredible tools for businesses, governments, and individuals. Businesses will be able to monitor their parking lots, governments their border and provide internet, and individuals will be able to navigate with ease. Don’t look for the Skybox Imaging acquisition to affect you anytime soon, but down the line this $500 million investment will prove to be a smart one.