---MIS2 Assignment # 7---

Google the number one most viewed website last 2009. The success of this business indeed covers the whole nation. When we want to search for something, we do say, “Google It”. A proven testimony that the business has its own strategy in making the number one website in the world according to sfaranda blogsite. But what are the ingredients behind this success? Hmmmmm..Let’s have a flash back.

What is Google?

Google is a company that started six years ago when its founders Larry Page and Sergey Brin developed a new way to do online searching in a Stanford University dorm room. This new idea then spread quickly to many people around the globe seeking information. Googles’ technologies have been able to sort through a large amount of growing information on the web and deliver it to its users for free, a service which returns accurate information in a very short amount of time. They rely on the millions of people who post websites to figure out which other sites have good content. Google uses a technique called PageRank to rank every page. It figures out all of the sites linking to a web page and gives them a value, based in part on the sites which are linked to them

How does Google make money?

Google is a business. Besides trying its best to satisfy its users it has to find ways of generating the most revenue. Google does this in a few different ways. The first one is the advertising which happens on the right side of the page when you search on Google, a program called AdWords. The second is offering its search technology to others, they do this with a program called AdSense which anybody on the web can start using. The third way in which they make money is through its Google Search Appliance which they sell to their customers. This appliance delivers accurate search results throughout a number of documents. Meaning your company would have its own search engine and it would work just as well as google.com.

Is Yahoo competition?
Yahoo and Google are battling over the same Web visitors and advertising dollars. There currently is an $8 billion global search advertising business, which is expected to rise to $22 billion in five years, according to Piper Jaffray. Worldwide online brand advertising is expected to increase twenty one percent this year from $11.3 billion to $18.2 billion, according to Goldman Sachs. These two companies are using very different approaches while going after the same advertising dollars. Yahoo uses human editors or “surfers” to organize web sites into categories. However humans cannot index everything so they are partnered up with a third party search engine to provide answers when its human – powered listing do not suffice. Google is about its search engine, done only with PageRank. There is no human indexing involved. Yahoo has been using a program called the “Idea factory” to promote inventive thinking in their company, staffers are supposed to improve everything from the company’s products to its campus.

Is Microsoft competition?

Microsoft is also competing with Google because Google is now a major threat to their dominance. While Google was launching all of its products for free, Microsoft was trying to catch up in search doing a project which they spent $150 million on but Google and Yahoo keep on getting ahead with new innovations such as complete maps and satellite photos. Bill Gates wishes he could have combined software innovation with a brand new Internet business model like Google did. Gates is worried about how much Google will hurt Microsoft’s core of franchise, control of what users will do when they first turn on their computers. Microsoft was always very powerful because it had control of the Windows operating system, they would decide which products and services consumers saw first. And so Microsoft did not have to make better products than its competitors, just about equal. It won because it went after competitors’ business models, not their technology. Now Microsoft’s strong points seem useless against Google. The people at Microsoft are worried that a “Google Office” will come out. And now that Google has come up with a desktop search there is no need for the start button in Windows.
What’s in Google’s future?

Google is only becoming more powerful. It has a desktop search utility on the way, a shopping engine, news aggegrator, and webmail services. Google is also hoping to offer a new browser (GBrowser). It would include all the Google properties such as Gmail, Froogle, Google News, Picasa, and Blogger. This means that the user could get all of his or her business done without ever having to leave the Google environment. This new browser would be another way to destination Google, meaning more revenue because more ads would be looked at by more users. It would also help Google control both data and applications, surpassing Microsoft.

So why is Google so popular?

A good way to get many users interested in the search engine is making it really easy to use. Google believes they should hide the complexity of their powerful search engine from their users so that they will be left with a simple, understandable way to get the information they need. So not only is the interface clear and simple, but the pages load instantly, the way the search results are placed is not sold to anybody, and the advertising
it relevant content which does not get in the user’s way.

Google’s Infrastructure is its Strategic Advantage

Google’s supply chain is made up of fiber networks, data centers, switches, servers and storage devices. From that perspective, its business model is no different than that of Dell’s (DELL): Google has to deliver search results (information, if you want to be generous about their other projects) as fast as possible at as low a cost as possible.

To better understand Google and its business model, one needs to break it down into three data inputs.

• Relevancy of results.
• Speed of search.
• Cost of executing a search query.

While their results aren’t optimal, they are good enough. Just like Microsoft Windows was good enough to dominate the market. In other words, the company has to make sure that the speed of its search is really, really fast. Any random search on Google these days takes between 0.12 to 0.06 seconds. Now that is really, really fast. Google does this by indexing the Internet quite well. The magic is in delivering the search results from this index at lightening speed, and that requires an infrastructure — oodles of bandwidth and specialized hardware — that is finely tuned much like a Formula One Car.



Reference: http://gigaom.com/2007/12/04/google-infrastructure/