One of my blog readers recently wrote and asked me “What do you think is Google’s view about the defining characteristics of the next generation of software? What software companies does it admire?” Those are very interesting questions, especially when you consider that Google is in a position to dramatically influence the next generation of software and to acquire many different companies that it admires.

Software Generations

The first software generation (the advent of the personal computer and Web 1.0) was focused on allowing people to create content. Basic word processors, graphics programs, and fundamental web foundations were put in place. Now that creating content is pretty universal (as far as technology in developed nations gets), the second software generation is beginning to be born (including Web 2.0). Now that we know how to create data, let’s figure out how to access, share, combine, and utilize this data. The second software generation is focused on making our content and information more accessible and more useful.

Google and the Next Generation of Software

Google understands the second software generation. It is positioning itself to capitalize on the shift. Google understands that you are going to want and need more information with you at all times. It sees the convergence of many personal digital devices, like cell phones, cameras, PDAs, music players, etc. It sees the proliferation of digital devices (smart cars, automated homes, RFID chips, microwaves, toasters, etc.) Google knows that data needs to be everywhere. The PC may remain important for many years to come, but it is going to be relegated from master to servant in the digital world—it will no longer be the focal point of people’s attention when it comes to data. It may act as a data warehouse to send and receive data to and from the devices that surround it. It might be stripped of its data and used simply as a portal to the data and services stored on the web. The important thing is going to be the data and the access, not the device or operating system.

Microsoft, on the other hand, doesn’t get it. There online services seem siloed from one another. There’s no way that I’m upgrading to Vista for any other reason than the fact that Windows XP is not going to be supported forever. And I’m never upgrading my version of Office again—I’ll switch to another word processor first. My OS and installed software are fine. I don’t need them to be upgraded. I need them to be leveraged.

Device Independence and Data Rights

Google sees software going in a device-, operating system-, and browser-independent direction. Data will be stored on central servers, accessed by millions of web and wireless capable devices, and utilized and modified by all sorts of programs. Storage, connections, and access (along with privacy protection) become the foundations of the second generation of software. They will be used by software to give users new control over their data, their personal lives, and their social connections.

Life During the Second Software Generation

Here’s an example: You’re at work and your spouse calls you to tell you about a holiday party that you’ve been invited to in three weeks. The party starts right after your work day ends, so you will need to leave directly from work. You’ve been assigned to bring a dessert, so you will need to remember to bake up something the night before.

Once the second software generation takes hold, things might go something like this: after you hang up with your spouse, you use your PC to access your online master calendar and enter in “party at the Johnsons at 7pm on the 22nd” and “make dessert on the 21st.” As you are leaving work on the 21st, you get a text message on your mobile (cell phone + other functionality) that reminds you to pick up ingredients for dessert on the way home. You go to the store and head to the baking aisle. You use the touch screen at the end of the aisle to query your online recipe repository, select a dessert, and send the ingredients list to your mobile and the instructions to your kitchen. When you walk out of the store, your credit card is auto billed (using RFID chips, your cell phone, and your credit card account). When you get home, the screen on the pantry is displaying the instructions to the dessert recipe. You bake it up and go to bed.

The next morning you wake up and your closet highlights your dressy occasion outfits for you to choose from. As you are leaving from work, your mobile reminds you of the party. It lists all the Johnsons in your address book and then displays directions to the address of the Johnsons you choose. You drive to the party and have a wondeful time, and your dessert is a hit.

Building the Second Software Generation

As you can see from the example above, we have a ways to go. The data for all the decisions and assistance must be stored somewhere—somewhere reliable, accessible, and secure. All the devices must be connected to it. A complex maze of access rights must be navigated, especially when it comes to sharing your data and rights with others. And there needs to be software to manage the whole system.

Google has one of the largest server networks anywhere. They have lots and lots of storage space, and prices for data storage are in free fall. Reliable and accessible data storage is nearly ready. Google also has rights to lots and lots of dark fiber optic networking. Broadband penetration is increasing, and plans for WIMAX networks are being laid, and so connectivity shouldn’t be a problem. Rights management and privacy are a disaster right now—there aren’t many standards in place, especially for managing so many and such diverse events.

Google is building many applications and services that are attempting to leverage different parts of the second software generation. As time goes on, I see many Google services beginning to coordinate with each other, all under the umbrella of your Google account and all accessible over any web-capable device. Google’s contextual advertising programs may begin to look more like intelligent agents making suggestions at important decision points.

Google and the Companies It Admires

Google admires the companies that will help the second software generation to mature. Google is developing lots of software and technology in-house, but it can’t do it all on its own. Acquisitions or partnerships will help to bring the second software generation to fruition. The companies I think that Google admires are the quick, nimble, aware companies that sometimes beat Google to a solution. Google admired and acquired YouTube because they have established a successful infrastructure for collecting and sharing online video that was more popular than Google Video. Companies that Google admires are those that intelligently collect, organize, and publish information that could be “mashed up” and utlized in second generation applications—Flickr, Digg, Del.icio.us, MySpace (think social connection data), BackPack (from 37Signals, one of the most nimble and aware companies on earth), and so on.

I think that it will take a powerful, well-funded company to direct and coordinate all the efforts that will bring the second software generation about—many of the necessary services have already been created, they just need to be coordinated. Google, Yahoo, Amazon, and Microsoft all seem to be heading in that direction. Google and Microsoft seem to be the strongest and/or the closest. Google has mindshare and online infrastructure, and Microsoft has incredible resources and its operating system stranglehold.

The next generation of software is on its way, and it may have Google’s name on it.