A week on from the shuttering of Reader, does anyone trust Google yet?

Google lied, Reader died.

One week on from the Google Reader news, and two very real trends are becoming clear. We will never trust Google again; and we are all thinking carefully about the sustainability of our online services.

Yesterday, Google announced a new service, Keep. It's… look, it's post-it notes for your phone, OK? There's really only so much technobabble one man can put up with. Android only for the moment, and quite pretty design.

But, here's the thing. Keep is clearly an experiment. It's free on Google Play, it's got no adverts, it's all stored on a centralised service – it is, in other words, Google Reader five years ago.

Would you build your life around it? I wouldn't.

 

 

 

 

 

 

It became a cliché after the closure of Google Reader, but it became a cliché because it is, at heart, true: if you don't pay for a product, you can't expect it to primarily serve you. If it has ads, you aren't the customer, you're the product; but if it doesn't have ads, it's even worse. You aren't using a product, you're using an expensive advertisement the company has created to try and get itself acquired (or acqhired).

It's why, in my list of possible replacements for Google Reader, I thought NewsBlur looked like the best shot. Because it's a service which has the radical business model of getting people to pay for it.

There will always be free services online which are good, and which live long and fruitful lives. Google and Facebook, to name two. And even paid-for services still die in their prime, as happened to mail app Sparrow, acquired by Google last year and shuttered. But as a rule of thumb, if you can't see how a developer can survive while providing you a service you desperately need, they probably can't, and you should expect a change down the line.

But there's one other aspect of sustainability, and it pains me to say it, but: this is why Twitter is closing off its API. Google Reader's API is used by an extraordinary number of feed-reading apps, including Reeder and NetNewsWire for Mac and iOS and Feedly for iOS and Android. Not everyone used them, and the main Reader web app was certainly popular – but once the closure of the sharing features removed the main reason for using the web app, the exodus set in.

And if everyone is using your product through an API, then it's hard to make any money from that. Google doesn't show ads on Reader, because it's always been a hobby for the company, but the sheer number of users who were using it as little more than a pipe mean that even if it had begun to show ads, it would have still been providing an enormous free service to the users of other companies' products.

With that in mind… I can see why Twitter has taken its extraordinarily anti-third-party-developer moves. And I'm not quite as against it as I was. I would like a Twitter which was happy to let me use Tweetbot, happy to let me tell Tumblr who I follow, and didn't try and impose its vision of how I should use its service on everyone else. I would even pay to be a member of that Twitter (although, unfortunately for app.net, I also like all the people I follow on Twitter, so can't quite flounce off somewhere else). But that isn't the choice: the choice is the Twitter we have, or a Twitter which goes the way of Google Reader.

Photograph: Getty Images.

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Photo: Getty Images
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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR