Google has the cash – now what?

  • Associated Press
  • Thursday, August 19, 2004 9:00pm
  • Business

SAN JOSE, Calif. – Google Inc. will have plenty to celebrate at its annual company summer picnic today after its debut as a public company gave it an immediate cash infusion of $1.16 billion, not to mention all the millionaires it made of employees and insiders.

But partying aside, the quirky 6-year-old company has some serious business ahead. The Internet search engine giant must cope not just with the deeper public scrutiny of its new corporate phase but also with some cutthroat competition.

Rivals chipping away at Google’s dominance range from start-ups like Vivisimo Inc. – with ambitions that echo Google’s – to titans like Yahoo Inc. and Microsoft, which have been beefing up search features on their popular Internet portals.

“Google came out of nowhere, and it’s entirely possible that the next big competitor could come out of nowhere, too,” said Tara Calishain, co-author of “Google Hacks” and author of the soon-to-be-released “Web Search Garage.”

Calishain cited how former leading search engines faltered or were swallowed by larger rivals. One-time search engine heavyweight AltaVista, for example, struggled against Google’s rising star and has since shifted through several owners, its latest being Yahoo.

Google’s founders, Larry Page and Sergey Brin, started the company in 1998, and the scrappy startup has since become synonymous with Internet searches.

Google’s success – the ability to profit handsomely from unobtrusive text ads linked to searches as well as its right-on-the-mark bet that people needed a good way to cull the vast amounts of information floating on the Internet – has only proven to others, including Yahoo and Microsoft, that the business of search is viable.

And now Google’s new status as a publicly traded company “highlights that good information retrieval technology is important in the economy and the marketplace,” said Raul Valdez-Perez, a computer scientist at Carnegie Mellon University and founder and chief executive of Vivisimo.

The Google formula has worked and has been mimicked by competitors, but Google as well as its competitors have yet to harness all the information available on Internet.

Google has indexed more than 4 billion Web pages, but that’s just a fraction of what’s out there, because there are countless databases and networks that are hard to reach and are proprietary.

“I think Google does well with going after the masses, but they don’t do well with specialized information,” said Nancy Blachman, author of the online Google Guide tutorial and wife of a Google engineer. “They’re just showing you the most popular page, which may or may not be authoritative.”

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