Correspondent and blogger Greg Sterling makes some interesting observations in this piece entitled, The New Drama: Google vs. Facebook on the Search Engine Land site. In it, he gives his opinion about why, as he dscribes it, Google likely has a case of 'Facebook envy.' It's a good read.

Mr. Sterling's item was inspired in part it seems by this story by Fortune magazine writer Josh Quittner entitled "Facebook's got Google running scared," with the subhead, "Why Google is spooked by Facebook and would dearly love to squash it." This article by Mr. Quittner is a great read, too, since it introduces his concept of the Innernet versus the Internet, and he offers a bit of an insider's glimpse into the frenzy happening in the Valley right now as Google contemplates how it might best catch up.

The story is a familiar one: a newcomer sneaks up on and disrupts a giant caught napping. As Mr. Quittner notes, Google today has a market cap of about $188 billion. Facebook is privately-held and the other day I seem to remember seeing a report that their annual revenues are around $96 million. How does it happen that so big and talented a company as Google drops the ball or goes blind? Just ask Microsoft, ask Compaq, ask Digital Equipment, etc. etc. etc. Big companies have to do a lot of things start-ups don't worry about. Start-ups have nothin to lose, no base to protect, no retail investors to satisfy. I'm not justifying Google's sleeping disorder. I'm just saying there are reasons this happens again and again.

Mr. Quittner suggests maybe Google should sit this one out and, for the record, I agree. You?

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