And Google is not alone. eBay bills out of Switzerland, Yahoo! Search Marketing also bills out of Ireland, Facebook bills out of the US. Microsoft uses an Irish subsidiary, Round Island One, which reportedly controls about $US16 billion ($20 billion) of Microsoft assets. They are all doing it.
So everyone bills out of other countries with favourable corporate tax structures, except for Facebook, who bill out of the US. Being a US Company. But that's OK, we can still use them as an example of companies using this scheme!