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Facebook Tui Stark is searching for a vacation paradise and can't find it. Googling "snorkeling beaches blue water" turns up listings for scuba diving, real-estate firms, rafting outfits. So Stark, a photography stylist in Needham, Massachusetts, turns to Quintura, one of many upstart search engines, which allows her to focus the results on snorkeling.
Microsoft limping along at 4 percent--Google has not only become the reigning heavyweight of the online world, but it has also transformed advertising, riled governments and sent tremors through Wall Street. As of last week its stock was valued at $200 billion, more than five times that of Yahoo's, and nearly three quarters of Microsoft's. Now it's threatening to shake up the trillion-dollar corporate-computing and wireless-communications markets. Despite spending billions trying to diversify beyond the straightforward search offered on its stripped-down, almost childlike home page, Google reaps about 60 percent of its outsize revenues and more than 80 percent of its profits from ads on that page, according to analysts' estimates. That means the company's success continues to hinge on the dominance of its simple search. It is threatened by a massive worldwide effort to build a better search, involving giant high-tech rivals, governments in Europe and Asia, and hundreds of tiny start-ups founded by academic wunderkinders much like Sergey Brin and Larry Page, the Stanford graduate students who founded Google in 1998. And it's also dependent on an online public that may make up the most fickle market in history, an audience whose interests are already showing signs of wandering outside the search box. Google may well be able to continue its charmed life by holding onto its search lead and getting its non-search businesses to kick in more profit, and Wall Street is certainly betting that way. But the computer world has a way of bringing seemingly golden brands down to earth with surprising speed, as Lotus, Novell, AOL and other firms have discovered. It's not farfetched that five years from now we may wonder why everyone thought Google was such a big deal. "Google has won the first stages of the Web-searching race," says Trip Chowdhry, an analyst with Global Equities Research in San Francisco. History shows how quickly search leaders can lose their way. The race kicked off in 1995, when researchers at Digital Equipment Corp. The resulting AltaVista search engine quickly became a favorite home page for early Web users, and seemed destined to rule search. But in 1998 word started getting around about a new search engine from a tiny company with a goofy name that sometimes returned more-useful results, and by 2000 Google was the search engine to beat. Yahoo, with a stunning lack of foresight, put Google's search box on its home page that year, burnishing Google's reputation with Yahoo's tens of millions of users. Microsoft, caught napping, wouldn't even enter the search-engine race in earnest for another three years. When Google tweaked its business model by linking ads to searches and charging advertisers only when searchers clicked on them--an approach it copied from rival online marketing firm Overture--it converted its search box into a money machine. Right now that machine is producing $15 billion a year, of which almost $4 billion is profit. If Google has been able to crush its search competition, it's not because it has perfected the art and science of Web searching. Google is what the industry calls a "second-generation" search engine. First-generation engines like AltaVista found Web pages containing words that matched the user's search words. Google's innovation was to further rank a Web page by the other pages that link to it, on the somewhat shaky assumption that if a page is much-linked-to, it must be useful. Charles Knight, an analyst who runs the AltSearchEngines Web site, notes there's a plethora of good ideas for what a third-generation engine might bring to the party, and no shortage of companies trying to prove those ideas. "Each has shown they can do some aspect of a search better than Google can," says Knight.
Microsoft Corporation E-mail This Article From: To: Add a personal message (optional): Submit Cancel Discuss Comments: Submit Member Comments * Posted By: thebest2008 @ 10/29/2007 5:06:21 PM Comment: I have made the perfect "third Generation" search engine and I wont be seen till the new year. I will start the year with a big bang when my search engine is released in the world which is called -OMAX- * Posted By: thebest2008 @ 10/29/2007 5:04:41 PM Comment: I HAVE THE THIRD GENERATION SEARCH ENGINE BUT I AM NOT GOING TO RELEASE IT JUST YET.
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