Google comes to Michigan

[CK1]

Exciting to see Ann Arbor (and Michigan, for that matter) draw 1,000 Google jobs. This will be a boon for Ann Arbor and the surrounding areas, but what impact (positive or negative), if any, will there be for Grand Rapids? What is the likelihood that other tech companies that either move or grow in Michigan will chose a place two hours away from the "hub" of Michigan's tech industry?

[vexom]

I will tell you what it does, it removes a bit of the stigma that Michigan doesn't have Computer Science jobs and people may actually start looking around locally for work before moving out of the state. Companies are looking for qualified local workers. I think the benefits could reach to Grand Rapids over time.

[joeDowntown]

Overtime, I agree, but not so much in the near term, and I don't think GR should be high-fiving that Ann Arbor got Google. I do think that in the long-term, you could get some people moving back to Grand Rapids that have worked for Google with great ideas.

I think Google is great for the state but I don't see it having much of an impact here. A partnership between VAI and Google could be an interesting thing to watch for though.

Joe

I will tell you what it does, it removes a bit of the stigma that Michigan doesn't have Computer Science jobs and people may actually start looking around locally for work before moving out of the state. Companies are looking for qualified local workers. I think the benefits could reach to Grand Rapids over time.

[superNOVA]

I hate to say it, but I see this as being mainly an assist from Google to the DNC to help Jenny retain the governorship. They have been know to do this before. That being said, I doubt it will grow quickly to the expected 2000 - 3000 employees...

Other than that it is good news. However, there are places in this state that could have benefited a bit more. Like Detroit. And don't tell me that being next to UM is THAT important, there are 100x more tech pros in Detroit than UM can pump out every decade - and they have experience. IT pros out of school are worthless.

As a matter of fact, they could have put it anywhere and I am sure that there would not be a huge problem attracting talent.

[suydam]

I hate to say it, but I see this as being mainly an assist from Google to the DNC to help Jenny retain the governorship. They have been know to do this before. That being said, I doubt it will grow quickly to the expected 2000 - 3000 employees...

I'm not sure I believe that Google would make an investment of 1,000 employees, opening an office, building a campus (or a building, or whatever) and actually seating their AdWords Headquarters in Ann Arbor just to try and help Jenny remain governor.

We're talking millions of dollars in investments from Google here. I could be wrong, but it seems far-fetched to me.

[Phizzy]

I'm not sure I believe that Google would make an investment of 1,000 employees, opening an office, building a campus (or a building, or whatever) and actually seating their AdWords Headquarters in Ann Arbor just to try and help Jenny remain governor.

We're talking millions of dollars in investments from Google here. I could be wrong, but it seems far-fetched to me.

I was going to write something similar. I mean, why would Google care that much about who the governor of Michigan is?

[AlexPKeaton]

I hate to say it, but I see this as being mainly an assist from Google to the DNC to help Jenny retain the governorship. They have been know to do this before. That being said, I doubt it will grow quickly to the expected 2000 - 3000 employees...

Other than that it is good news. However, there are places in this state that could have benefited a bit more. Like Detroit. And don't tell me that being next to UM is THAT important, there are 100x more tech pros in Detroit than UM can pump out every decade - and they have experience. IT pros out of school are worthless.

As a matter of fact, they could have put it anywhere and I am sure that there would not be a huge problem attracting talent.

I doubt this has anything to do with the governor. This office should exist long after she's gone, and the next governor is gone, and the next...

Keep in mind this office won't be employing many (any?) software engineers. It's a sales office. That said, there is a huge advantage to getting kids out of school. They can be worth far more than crufty old IT pros. Google isn't interested in IT work, they're interested in computer science. Research and development. The people best suited to that work are usually fresh out of college. You learn pure computer science at school, but a lot of it simply doesn't apply at most jobs. Crufty old IT pros are often past their prime.

Secondly, people fresh out of college who aren't married with families are often more willing to work long hours in a startup culture. Google wants people who are passionate about what they do, people who will be leaders in the industry, people who are naturally curious. That's why being near a university is important. The people Google is looking for are the types who would create technology, not simply use it, like most IT pros.

Back to reality though. This is a sales office, so I'm not sure what Ann Arbor has to do with it other than being a really nice city.

-nb

[Phizzy]

Keep in mind this office won't be employing many (any?) software engineers. It's a sales office.

...

Back to reality though. This is a sales office, so I'm not sure what Ann Arbor has to do with it other than being a really nice city.

Are you sure?

Google jobs:

Operations and IT (Michigan - Ann Arbor)

Can you make computers do amazing things? Are you excited about designing and developing new applications that really make a difference? Google is looking for engineers with the programming skills to change the world. Join Google engineering and help us build products that are used by millions everyday.

[superNOVA]

I mean, why would Google care that much about who the governor of Michigan is?

Perhaps because they are some of the DNC's largest donors and we all know that the retention of Michigan is key on the DNC's list of things to do. A DeVos win could in turn spur an eventual DeVos run at the presidential level. Something they really don't want to have to deal with.

Not to mention, the press release all but confirmed this, and the fact that Jenny is already pimping it all over. Like she really had anything to do with this...

Keep in mind this office won't be employing many (any?) software engineers. It's a sales office. That said, there is a huge advantage to getting kids out of school.

OK, why UM then. Sales students are sales students - you can get them anywhere and I dare say that school has little reflection on actual quality. Trust me, I have seen the best and worst of them, and schooling has little to do with it.

Obviosuly UM because the co-founder went there. But I still stand by my argument that they could have put this anywhere and attracted the talent they need. After all, everyone wants to work for a company that is about 10000x overvalued and barely pulling a profit.

[AlexPKeaton]

I agree they could have attracted talent anywhere, but why not go where the talent already is? Why do you think so many technology companies are located in Silicon Valley? Why do you think so many auto manufacturers and suppliers are in Detroit? Why are most financial companies headquartered in New York City?

Anyway, the DNC connection seems to be a stretch to me. Have any real information to back it up? Sure, idealogically the Google people may lean left, but you don't build offices just for positive PR.

-nb

[egrguy]

I agree they could have attracted talent anywhere, but why not go where the talent already is? Why do you think so many technology companies are located in Silicon Valley? Why do you think so many auto manufacturers and suppliers are in Detroit? Why are most financial companies headquartered in New York City?

Anyway, the DNC connection seems to be a stretch to me. Have any real information to back it up? Sure, idealogically the Google people may lean left, but you don't build offices just for positive PR.

-nb

AA could've been the choice all along -- if the Google guys wanted to give a push to granholm while she's down right now, why not make a big bruhaha about all grand the idea is and how much JG did to get the project to AA. I don't think that's a stretch.

Nonetheless, crazy politics or not, this is a definite boost to AA's economy/image in addition to the rest of the state, it certainly wont hurt any.

[suydam]

AA could've been the choice all along -- if the Google guys wanted to give a push to granholm while she's down right now, why not make a big bruhaha about all grand the idea is and how much JG did to get the project to AA. I don't think that's a stretch.

That's a very different scenerio than Google choosing Ann Arbor just to help the DNC keep hold of Michigan's governorship.

You've just described what politicians do: take credit for the good and blame the bad on someone else. There's not a republican or democrat alive who doesn't do that.

[snoogit]

That's a very different scenerio than Google choosing Ann Arbor just to help the DNC keep hold of Michigan's governorship.

You've just described what politicians do: take credit for the good and blame the bad on someone else. There's not a republican or democrat alive who doesn't do that.

Just like Devos is putting the economy's woes on the governor

(and not the GOP controlled congress of course)

[vexom]

Just so everybody knows when you are asking why Ann Arbor one of Googles founders, Larry Page, went to the UofM prior to going to get a Doctorate at Stanford and was actually raised in East Lansing where his dad was a professor of Computer Science at Michigan State University.

Edit: just noticed that it was mentioned earlier

[GRDadof3]

Just like Devos is putting the economy's woes on the governor

(and not the GOP controlled congress of course)

Like it has anything to do with either of those two, unless they were directly involved with the friggin mess that is the Big 3 - UAW setup. That is the #1 reason why Michigan's economy is "beleagured, beguiled and bemoaned" or whatever other adjectives the media can think up.

I'm sorry, but there is NO WAY Google chose Michigan and Ann Arbor to boost Jenny G's poll numbers. I mean, that's downright comic material. I think it's directly related to my email campaign to Google last year, except they got off at the wrong exit on I-94.

[mgman]

After all, everyone wants to work for a company that is about 10000x overvalued and barely pulling a profit.

I will agree with you that the company is overvalued, no company should be trading at a 75 P/E ratio, but it is a really profitable company, regardless of the first quarter results. A gross operating profit of 3.8 billion dollars and Total Net Income of 1.4 billion dollars in 2005 for a company with only 6,800 employees is pretty profitable. But with that said they do not do a great job of being clear in their financial statements.

As for influencing the campaign, what people at the company would make the decision, I understand that the founders hold a lot of power but don't other managers have a say too. Is everyone at the company concerned about the campaign, I doubt it but I poo poo all conspiracy theories.

[DSchoon]

Did someone here really suggest a DeVos presidential run?

[CK1]

I will agree with you that the company is overvalued, no company should be trading at a 75 P/E ratio, but it is a really profitable company, regardless of the first quarter results. A gross operating profit of 3.8 billion dollars and Total Net Income of 1.4 billion dollars in 2005 for a company with only 6,800 employees is pretty profitable.

No one so far has suggested that perhaps moving operations to Michigan was simply just a good business decision. Google has been granted tens of millions in tax breaks, making the infrastructure investment for a new office location almost a no-brainer. On top of that, cost of living expenses in Michigan are miles below what they cost out in Silicone Valley. Granted, Ann Arbor may be one of the most expensive places in Michigan to live, but it still pales in comparison to what housing costs in California are. Unfortunately I am not sure what Google pays its employees in California, but with starting salaries averaging $47,000 at the new A2 location, my guess is that wages are a lot less in Michigan than in CA.

Google isn't the only company to abandon California for cheaper locals. Example is Nissan moving its North American operations / HQ from the west coast to Nashville due to cheaper operating costs for both the company and its employees.

I think that Granholm is simply being opportunistic with slapping her name all over this project, when in reality it is simply a smart corporation making a very smart business / bottom line decision.