Google: where is the diversification?

Google still earns 97% of its revenue from internet ad business. Here is a nice blog on business insider which lists all what Google promised but has failed. http://www.businessinsider.com/all-the-things-people-thought-google-would-do-but-it-hasnt. The list include

• Take over billlboards, TV,Print
• Replace advertising agencies
• Replace microsoft office
• Develop an operating system
• Build a google phone
• Become a nationwide ISP

among others.. Also google has failed to monetize its social networking website orkut while facebook and myspace has taken the lead both in United States and rest of the world. Youtube is still making losses and efforts to get a positive return on its large investment in buying Youtube has largely been a failure.

The internet advertisement business though remains strong and Google has been able to maintain and increase its market share of this business. But despite the oft repeated culture of innovation, Google has not been able to deliver a new revenue stream.

If we compare this with Apple, they have been more succeessful in going fromMac to ipod to iphone. Diversification is one of the biggest cry in the current business environment as we have seen banks betting huge on mortgage backes securities and forgetting about diversification has paid a large price. so what is in store for Google ?