Google is reportedly using a so-called ‘pantry mode’ strategy to sit on new ideas. According to a report from The New York Times, the company is actually waiting for a competitor to force its hand.
Google’s ‘pantry mode’ approach affects new ideas within the company
The company actually considers this to be a research-and-development strategy. Needless to say, Google employees have a lot new ideas, and develop a lot of products that never get released, or at least don’t get released in time.
The report claims this worries some former and current Google executives. They’re not sure that Sundar Pichai is the right man for the job. They believe he struggles to make important decisions in time and take risks. They believe that ‘pantry mode’ is just one indication of that.
Google has been doing great in the financial department, though. The company’s profits have been soaring, and the same goes for revenue. As long as that’s the case, Sundar Pichai probably has nothing to worry about.
What is interesting, though, is that Google is spending a lot of cash on R&D, more than ever, in fact. A report by Business Insider highlights that fact. In fact, Google’s R&D costs have been growing year-in-year-out since Sundar Pichai took over back in 2015.
Google spent a lot more on R&D in 2020 than Facebook & Apple
Just to give you an example of how much Google is spending on R&D. In 2020, Alphabet, Google’s parent company, spent $27.57 billion on R&D. That is a staggering amount of money.
Facebook and Apple are lacking in that regard, the two companies have spent $18.45 and 18.75 on R&D in that same year, respectively. They still spend a ton of cash, but nowhere near what Alphabet invested.
It remains to be seen if Google will comment on the ‘pantry mode’. The New York Times reached out for a comment, but did not get one just yet. It’s possible Google won’t respond at all, as this concerns the inner dealings of the company.