Rough Times Ahead For Firefox As Google Deal Expires
Mozilla Firefox has been rapidly losing market share ever since Google released a browser called Chrome. Mozilla has also lost a lot of their enterprise customers. On top of that, Google’s contact with Mozilla is expiring. Google supplied Mozilla with 84% of their revenue.
Firefox’s market share plunged from 25% to 22% and Chrome rose from under 5% to over 18% in the last two years. Firefox has been accelerating the development of their browser and has been neglecting their enterprise customers lately.
Mozilla’s biggest source of income has been their search deal with Google. That deal expired in November 2011. However Mozilla has partnerships with a number of search providers that differ by market. It is unconfirmed whether Mozilla is renewing their deal with Google, but they said that “We believe that search providers will remain a solid generator of revenue for Mozilla for the foreseeable future.”
In 2010, Mozilla made $123 million revenue and 84% of it came directly from Google. If Google does not renew, then Mozilla will instantly see $100 million in revenue drop. When Google signed their three year partnership with Mozilla in 2008, Google Chrome was still nothing more than just a project.
More details to follow once we find out whether Google renews or not.
[ZDNet]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry