[btilly]

Google just validated your idea. Don't just assume that they did it better. Look at what they did, steal any ideas that you like from them, and continue on with your own value proposition.

Just because it is Google doesn't mean that you're doomed. If it did, then Dropbox would have instantly folded to Google Drive. They didn't.

Really this is not you against all of Google. It is you against a small team of people at Google who have some inherent marketing advantages, but who also have a lot of corporate overhead that you don't, and who knows what internal barriers to doing what they want to do. (Which might not even be the right direction.)

Is it a competitive threat? Sure. Is it a foregone conclusion? No way!