Google announced it's testing out a new web domain registration service that could drive business to its existing apps.
GoDaddy currently dominates among companies that register domains, but a similar service from Google could be a better, more streamlined option, according to Sascha Segan, lead analyst at PCMag.com.
"Google is just dipping their toes in the water here ... and seeing ... if it could make a good value add for their Google Apps platform or their other cloud services," Segan said.
Google Apps for businesses include email service and document and calendar sharing services.
Segan said he's surprised that Google hadn't offered a domain registration service earlier. But after an expansion in the types of domains available for registrations has grown and since about 55 percent of small businesses still don't have their own websites, according Google's own research, there's still an opportunity for Google to change the game in domain registration and related small business services.
GoDaddy currently manages more than 57 million domain names and sells web-hosting services to many of its customers.
So far, Google's domain registration service is in beta testing by invitation only and the company is seeking feedback from its testers to fully develop the service, Google said.
For now, Google Domains won't include hosting services, but companies such as Squarespace and Weebly are among the firms partnering with Google to help its users build their sites.
—By CNBC's Althea Chang