Not necessarily with Google, the Company — he’s set his sights on Google, the Search Engine which powers Google, the Company. Stephen asserts that Google Search is assailable by the throngs of vertical and niche search engines sprouting up all over the web. His assertion, that big General Search Engine, Google, will face competition, not from Yahoo (YHOO) or Microsoft (MFST), but by the numerous Technorati-esque niche providers who can perform their niche better than Google can perform in certain niches.
While I agree that from a functionality standpoint — yes, Technorati may perform better blog search than Google — these smaller search engines may provide better results for a certain task, but that doesn’t mean Google’s business is assailable.
That’s the equivalent of saying that since Segway’s self-balancing mechanism is so much better than other transportation technology out there, Segway is poised to eat the Auto Industry’s lunch. Okay, this assertion was made by Dean Kamen when he was building up to launch of the device, but reality has set in. It’s a great device to use instead of a bike or a scooter or walking, but it’s not ready to replace my Honda just ye,t and certainly not poised to revolutionize urban transportation (ever hear of the subway or city bus?).
It no longer makes sense to view Google as just a search engine. Google, the Company, is more than just a search engine for the following four reasons:
Google as Web User Interface: Remember back when everything was portals? I used my ISP to dial-in to the Internet, and was dropped off into an environment designed by the ISP with numerous outbound links to begin my surfing. Now, I only use Google (Okay, I use iGoogle which is stickier given that fact that I’ve taken the time to personalize it). The revolution that Google kicked off was that I now view Google as my interface to the web. I go to my search engine to surf — not a portal. This is something that Technorati, and the hordes of smaller engines can never provide me. I’m locked-in. Suite of properties: As we’ve seen Google evolve from just a search engine into a more Yahoo-like web experience, we’ve gotten hooked on various Google properties as part of an overarching web experience. I don’t really care that Gmail isn’t making serious money on Gmail — I love it. I use it not only for my web mai,l but I route some of my business email through it for spam detection, and for even better indexing (admit it, some of you do this as well). I’m also using Google Apps to manage email from some of the blogs I manage. With Google Desktop, the boundaries between my PC (actually, it’s a Mac baby!), and the internet have blurred. and I use Google to search them both. This is incredible lock-in, and not something a niche search provider can provide me or will usurp from Google. Buy vs. Build to Compete: Even if these niche providers have better technology for vertical search, Google is competing on every front. Google Coop is an emerging platform that allows users to tweak search results, refine searches, and create their own search engines on Google technologies. It’s been slow but I’ve played around with this and with Google’s API, and really believe that this thing is set for future bling-dom. Also, Google can always purchase some of the smaller players if the technology is really that outperforming. SEARCH vs. search: I dunno, maybe it’s just me, but I like using Google for everything. It’s actually great to give them all my business because in return I get adequate results for most everything I search for on, and off the Internet AND it’s integrated into other apps that I’m running (Google Docs, Gmail for instance).
So, I guess Stephen is right, and he isn’t right (my kids try to convince me that the same is true of me). There will always be startup companies developing cutting-edge search to compete against Google not head-on, but in verticals and niches in which they can compete. But, ultimately, Google wins.
Checkmate.
Disclosure: The author owns Google personally but his fund does not as of August 13, 2007.
GOOG 1-yr chart:
