So, perhaps you were like me in thinking “Why is Google extending its long tail AGAIN by branching out into yet another non-core competency area?” While its price is competitive, $10 per private registration, its not at a price point that is going to convince anyone to suddenly switch providers. So what gives? Why bother? Is it merely to add another little bit of digital swag that the Google faithful will buy into? (literally?)

I don’t think so.

(Well, maybe on the last one)

The reason why Google may be getting into Domain Registration may not be to “out GoDaddy GoDaddy” (although I wonder what the “Google Girls” would look like), but rather, the introduction of these services is to create the infrastructure for a more complete package of services. What might that complete package be? Well, although it is currently be offered piece-meal, or a la carte at the moment, one wonders whether or not Google is secretly trying to compete with Microsoft.

WOT?

That’s right. Microsoft.

Microsoft had announced to limited fanfare about a month ago exactly how it would compete in the Office “live” arena; and it wouldn’t necessarily be with web enabled productivity tools. Rather than directly compete with the likes of Writely and Google Spreadsheets with its own Word, Excel and so on (although they may still be coming out), Microsoft is entering the small business arena with a complete web hosting package for small businesses.

Could Google be eying a similar prize?

Try this equation on for size: Google Domain Registration + Google Base + Google Page creating tools + Google Adwords and/or Adsense == a potential small business offering?

The domain registration at $10/ domain right now is an a la carte offering that in itself, may not mean much. But, perhaps coupled with a few other non-core Google functions, it could combine a la Voltron into something much more than its individual parts.

It’ll be an interesting showdown if it does.

Microsoft, who has already launched its beta of its Office Live product, is marketing its offerings in the traditional Web2.0 “fremium” model, where the base offerings are free. I’ve mentioned it before, and its worth mentioning again, if only because I’ve heard nothing about it. Domain Registration, Web hosting, basic marketing tools — they are all free.

FREE.

And it doesn’t look like they’re tying that into you purchasing something now or later, although if any US citizen wants to enter the Beta to confirm this I would be most appreciated.

Google Domain Registration in and of itself sounds down right silly. But when coupled some other lame duck long tail products, it begins to look very interesting indeed. And with its own huge market cap and war chest, just to compete with Microsoft, it might have to also look at a Fremium model as well … with larger and paid offerings paid for by small businesses who want to trade up.

And I say “Whoo-ha!” to that.

Because it doesn’t matter if its something old trying to desperately re-invent itself, or something new trying to stay ahead of the curve.

Free is scrumptious no matter what flavour it is.