This is an interesting question (I am getting addicted to Yedda - bad for business).
Before one can answer, you need to understand google's positioning and what their core competencies are. In my view, there are only a handful of truelly global growth companies right now. The two top ones are Google and ebay. Zopa could be another, and so could be ebdex Document Exchange (we just started and need VC funding if we are to make any impact). But Google and ebay are based on B2C and C2C models. Microsoft, Oracle, SAP: these are great companies but cannot match the year-on-year growth achieved by Google and ebay. Stock valuations reflect the investor sentiment.
What is google's core competency? Collecting data and providing an easier way to access that data for the mass. In this process, they have expanded in to data related areas such as on line calendars, spreadsheets, google mail, etc etc. I believe they will continue this route until clear business strategy evolves. Yes, they are also positioning themselves against Microsoft in some fields, especially in the SME and SOHO arena. But it will take time to make any significant impact.
But it is the data that google is after. Data leads to knowledge. Data mining can create new business opportunities such as in the areas of business intelligence and reporting. Google also has a problem as they continue to serve both consumers and businesses. Both have different values and needs. So, they need to also achieve a balance.
Blogs are also getting better rankings on google searches than traditional static web pages. Will google permit this for long, time will tell!
There could also be further consolidation in the market place.
Google is also becoming a key player in web2.0 arena with acquisition of blogger and videos know challenging youtube, etc.
time for me to get the hell out of Yedda and to the real world.