Brian Gongol
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It's a bad sign for the future of the company -- Google, as a company, is a lot like the shark: If it doesn't keep pushing forward, it's going to die. The company is entirely and utterly dependent upon the development of new products and services to succeed beyond the next 24 to 36 months. Google Labs was where they showcased some of their new ideas, and encouraged their developers to play around. They'll surely still play around a lot, but the signal that is sent is that play outside the boundaries of what improves the company's current products isn't endorsed.
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The move makes space for broadband Internet spectrum use
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The company is toast if they decide to do it, which is why it's highly unlikely
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The world's energy budget consists of what's produced, what's used, and how well it's stored in between. Solar energy is in huge supply, but we don't do well at all to capture or store it. Solving that problem would solve a huge share of human problems, because there's virtually no trouble in the physical world that can't be solved with more energy.