Google: the essence

Nick Carr has a thoughtful meditation on Google. Its vitality stems, he thinks,

from the vast number of complements to its core business. Complements are, to put it simply, any products or services that tend be consumed together. Think hot dogs and mustard, or houses and mortgages. For Google, literally everything that happens on the Internet is a complement to its main business. The more things that people and companies do online, the more ads they see and the more money Google makes. In addition, as Internet activity increases, Google collects more data on consumers’ needs and behavior and can tailor its ads more precisely, strengthening its competitive advantage and further increasing its income. As more and more products and services are delivered digitally over computer networks — entertainment, news, software programs, financial transactions — Google’s range of complements expands into ever more industry sectors. That’s why cute little Google has morphed into The Omnigoogle.

Because the sales of complementary products rise in tandem, a company has a strong strategic interest in reducing the cost and expanding the availability of the complements to its core product. It’s not too much of an exaggeration to say that a company would like all complements to be given away. If hot dogs became freebies, mustard sales would skyrocket. It’s this natural drive to reduce the cost of complements that, more than anything else, explains Google’s strategy. Nearly everything the company does, including building big data centers, buying optical fiber, promoting free Wi-Fi access, fighting copyright restrictions, supporting open source software, launching browsers and satellites, and giving away all sorts of Web services and data, is aimed at reducing the cost and expanding the scope of Internet use. Google wants information to be free because as the cost of information falls it makes more money…

Is the DoJ preparing an antitrust case over the Google-Yahoo ‘partnership’?

The NYT thinks that it might be

That was the question being debated from Washington to Silicon Valley on Tuesday, after the Justice Department, which has been reviewing the partnership for several weeks, hired Sanford M. Litvack, a veteran antitrust lawyer, to help assess the evidence gathered by its lawyers.

The hiring of an outside lawyer like Mr. Litvack is rare and represents the clearest indication that the Justice Department could be planning to mount a legal challenge to the deal, some analysts said. “They wouldn’t bring in a special counsel unless they were preparing to litigate,” said Sam Miller, a partner at Sidley Austin in San Francisco who acted as a special trial counsel in the department’s first antitrust case against Microsoft…

Googlewashing

Google’s use of a comic strip to explain the thinking behind the Chrome browser architecture has attracted lots of derision. The Register has been assembling a compendium.

Thanks to James Miller for spotting a dud link.

Ten years on

This morning’s Observer column

In the old days, dates fell into one of two categories: BC and AD. Now the relevant categories are BG. and AG: Before and After Google. The critical date was 1998, when Larry Page and Sergey Brin launched their PageRank system for rating web pages. It was an epochal moment. No British child knows there was once a world without Google. In fact most would be astonished that people were able to get along without it.

Google is 10 years old today and it has celebrated by upsetting the world’s applecart – again…

Vital Statistics

From the NYT’s Bits Blog celebration of Google’s 10th birthday.

Google’s age: 10
Microsoft’s age: 33

Google’s revenue in the last 4 quarters: $19.6 billion
Microsoft’s revenue in the last 4 quarters: $60.4 billion

Microsoft’s revenue at age 10: $140 million
($279 million in today’s dollars)

Google’s revenue per hour in the last 4 quarters: $2.2 million
Microsoft’s revenue per hour in the last 4 quarters: $6.9 million

Google net income in the last 4 quarters: $4.85 billion
Microsoft’s net income in the last 4 quarters: $17.6 billion

Google employees, as of June 30th: 19,604
Microsoft employees, as of May 31st: 89,809

Google’s revenue per employee: $1 million
Microsoft revenue per employee: $672,000

Market value of Google: $142 billion
Market value of Microsoft: $241 billion

Number of tech companies with a market value larger than Google’s: 3 (Microsoft, IBM and Apple, in that order)

Worldwide searches on Google in July: 48.7 billion
Worldwide searches on Microsoft in July: 2.3 billion

Worldwide searches per hour on Google in July: 65 million
Worldwide searches per hour on Microsoft in July: 3.1 million

Google pokes a sharp stick in Microsoft’s eye

You may have seen the news that Google is launching its own (open source) browser, codenamed Chrome. According to the company blog,

Under the hood, we were able to build the foundation of a browser that runs today’s complex web applications much better. By keeping each tab in an isolated “sandbox”, we were able to prevent one tab from crashing another and provide improved protection from rogue sites. We improved speed and responsiveness across the board. We also built a more powerful JavaScript engine, V8, to power the next generation of web applications that aren’t even possible in today’s browsers.

In reality, this takes us back to the original threat/promise of Netscape — the thing that threatened Microsoft so much that it set out to destroy Netscape. This was the idea that the browser was destined to become the key piece of software — almost an operating system in its own right.

Google Chrome takes up that idea, and holds out the promise of making it a reality. As Nick Carr puts it, Chrome

promises a similar leap in the capacity of the cloud to run applications speedily, securely, and simultaneously. Indeed, it is the first browser built from the ground up with the idea of running applications rather than displaying pages. It takes the browser’s file-tab metaphor, a metaphor reflecting the old idea of the web as a collection of pages, and repurposes it for application multitasking. Chrome is the first cloud browser.

See the exposition in Google’s Comic Book for an outline of the thinking that went into Chrome. It’s basically the first multi-threaded browser.

This is an important strategic move by Google. To quote Carr again,

Google is motivated by something much larger than its congenital hatred of Microsoft. It knows that its future, both as a business and as an idea (and Google’s always been both), hinges on the continued rapid expansion of the usefulness of the Internet, which in turn hinges on the continued rapid expansion of the capabilities of web apps, which in turn hinges on rapid improvements in the workings of web browsers.

To Google, the browser has become a weak link in the cloud system – the needle’s eye through which the outputs of the company’s massive data centers usually have to pass to reach the user – and as a result the browser has to be rethought, revamped, retooled, modernized…

I’ve no doubt that this development will be presented in the mainstream media as Google’s “attempt to capture the browser market”. That would be a misconception IMHO. By making Chrome open source Google is ensuring that any browser that seeks to stay competitive has to take up the multi-threading idea. Which will make cloud computing even more pervasive. Which will further increase Google’s importance. As a strategy, it’s fiendishly clever.

And just in case the folks in Cupertino are sniggering, this is a harbinger of things to come on the mobile phone front too. Google has sussed that the (closed) iPhone will be difficult to beat, so its attack is based on an open platform (Android). Smart.

Many thanks to Gerard for the original link (even though he hates the Comic Book!)

LATER: I can’t run Chrome because the first beta release only runs under Windows Vista (if you please), but TechCrunch has been using it and likes it a lot.

STILL LATER: Kate Greene has a useful overview in Tech Review. And the Register published a perceptive piece by Tim Anderson.

When ignorance is bliss

This morning’s Observer column

Sometimes, ignorance is bliss. We saw two examples of this last week. The first came when a new search engine – Cuil (www.cuil.com) – was unveiled. The launch was an old-style PR operation. Some influential bloggers and mainstream reporters had been briefed in advance, and whispers were circulating in cyberspace that this would be Something Big. Cuil would be the ‘Google Killer’ everyone had been waiting for.

Evidence for this hypothesis was freely cited. The venture was the brainchild of ‘former Google employees’: nudge, nudge. At least one of them had been at Stanford, the university that nurtured the founders of both Yahoo and Google: wink, wink. It had indexed no fewer than 121 billion web pages, compared with Google’s measly 40 billion: Wow! Cuil had already received $33m in venture funding! Cue trumpets.

So many people were taken in by this that when cuil.com finally opened for business the site was swamped…

Call that a camera…

Michael Dales is the first of my Camvine colleagues to bag a Google StreetView car

Yesterday on my walk to work I spotted someone stood on top of their car erecting upon it what looked like a ship’s superstructure. I had my suspicion as to what this might be, so I went to have a chat with the guy, and my guess was confirmed – it was the Google Streetview Car!

Maybe we should start a Googlecar Twitchers club?