ss_blog_claim=6009aec954075052aaf0cfe1499f52be

Tuesday, February 12, 2008

Search Engine mood swings

What has been mentioned above may look like an oversimplified version to many of the people, especially the webmasters. But, it would be an understatement to overlook it in the first place. Few people understand that even the most intricate systems and designs work on some simple, basic principles. In the first generation or the immediate period following the incorporation of new technology or production of a new system, analysts often focus on the essential working principles and structural designs. Later on, when enough knowledge is available some of them might miss by a fraction and lose it all.

In the first generation webmasters tried to study the basic working principles by which the search engines processed the huge number of pages. Their findings led to the discovery of some essential components – algorithms; keywords; tags and meta tags, links, etc. It was a dominant trend and based on it researchers put forth the key elements that should be considered in order to bring websites to first few search result pages. Such efforts required the customization of the websites according to the predefined values of scaling used by search engines in their ranking method. Thus was born Search Engine Optimization, and all those researchers, observers, browsing specialists became the masters of the web.

Today the trend has changed as the techniques of yesteryears are not very helpful. The people behind the creation of search engines realized that people have deciphered their codes and might exploit it for benefits. So they kept on making upgrades and at the same time provide for a better ranking system. Today, web promotions include a lot of activities, but the codes still remain the codes. Website promoters literally leave no stone unturned – blogs, links, networks, unconventional and unorthodox marketing exercises; so many things. Sometimes they get lucky and hit the jackpot; otherwise it is a long, long waiting.

Google throws a lifeline to Yahoo!

Since the news of Microsoft’s (apparent) hostile takeover of Yahoo, I have a feeling that I am watching a nail biting thriller. As the story unfolds, every news seems like mystery and the suspense is killing me!

The latest that I heard is that Google has thrown a lifeline to its stumbling rival Yahoo! This so called benevolent move (only future will tell whether Google too turns out to the big bad wolf) proposes a partnership between the two internet search sites so as to foil the Microsoft's $44.6bn (£23bn) hostile takeover bid. Another twist in the tale.

Now this marriage of the odds would involve Yahoo outsourcing its search and advertising functions to Google. In return, Google would allow the company its independence and maintain its idiosyncratic corporate culture which could be lost under Microsoft management.

But is Yahoo! ready to admit defeat? Because that will be what it amounts to, if the two get together. Though Yahoo has not reacted to this news publicly, I am waiting for a response like many of you.

Microsoft on the other hand is confident that Yahoo would join hands with it very soon. Now that is confidence- whether it turns out to be misplaced remains to be seen!

What does it take to merge Google, Yahoo and MSN?

Just when we thought that the search world is becoming dormant, the breaking news of Google, Yahoo and MSN joining hands, exploded the Internet industry circuits. For some, this is too big a news to digest. It sure is, after all Google, Yahoo, and Microsoft, hitherto, have been known to battle over search and platform restrictive productivity enhancements. Or could it be a giant merger-for-altruism with these three forces combining in order to create exclusive platforms that impart authentic, unbiased information along with being globally accessible. Also the long running friction between Microsoft and Google holds some significance in this context.

Hitwise has studied the vital statistics of all these organisations involved and the analysis seem quite interesting. Google rules the search world with 65.98 percent share in the month of January with Yahoo and Microsoft following at 27.84 percent. But then, web is not only about search. There are many international arenas in which Yahoo still dominates. It still is the numero uno in e-mail with 54.63 percent U.S. market share with Google falling behind at 5.51 percent. Yahoo News and Yahoo Finance on the other hand boast of 7.38 and 29.15 percent respectively.

The bitter rivalry between Microsoft and Google has been a bone of contention for the mainstream press over many years now. Both these organisations are kings in terms of global goodwill and business potential in their respective domains of software and search. Each of them has been competing for the much coveted audience and talent share as well.

Trade analysts who often compare search and revenue with Google have been giving Yahoo a hard time by declaring it legally dead. Apparently, Microsoft came across the table with their own offer while Yahoo was still contemplating buyout and merger plans. And when Yahoo did not respond to the offer fast enough Big Blue came out with it in the open that gave it an ugly face.

In an attempt to denounce the hostile takeover by Microsoft ,Google has, in the most unlikely of happenings, decided to support Yahoo. There is still some fog in the Internet Industry as to what this Yahoocrosoft promises but isn’t it quite obvious that there must have been some strategy behind the Yahoo buyout? But on the flip side there are the brutal realities that any giant merger brings about- mass loss of jobs followed by the painful consolidations and headaches for the consumers for next one or two years. Surprisingly enough, in the PR arena these combatants are seen declaring themselves as the "tech providers of the people". When it could just be a mere race for moolah and just that!

Yahoo can come together with Google, sell to AOL, or might as well continue alone safely sidelining Microsoft. Whatever it be, the news circuit is going to stay abuzz in the near future. We just hope that the point of Altruism (on which it all started) doesn’t get missed in this entire hullabaloo.

Microsoft Yahoo! Duo Challenges Google

All the news that I come across these days are hell bent on unraveling the threads of mystery behind the Microsoft’s so called “unsolicited bid” for Yahoo! Even I would like to know the ulterior motive behind the takeover.

Let me guess the reason behind this curiosity. When 2 of the major giants in internet advertising market plan to get together, there are bound to be some major changes in the equation.

This lucrative online industry is currently worth $40 billion and is expected to grow to $80 billion within three years. The undisputed king of this segment is none other than Google. But now, its supremacy is being threatened by the duo.

If you look at the statistics, Yahoo! shares lost around 30 percent of their value in the year gone by. Google shares on the other hand have gained, despite reporting low fourth-quarter earnings.

Yahoo! had announced earlier this week, to lay off employees by mid-February, quoting what CEO Jerry Yang described as "headwinds" facing the company.

I believe that if this deal goes through, this somnambulant giant may get a new lease of life. This lethal combination is no doubt posing an imminent threat to Google. Its irrefutable stint at the top is in jeopardy. And so it is crying foul.

I will keep you posted on the latest from these 3 camps as and when something new comes up.

Microsoft to Borrow For The High Stake Yahoo! Bid

Well I am back with the latest on Microsoft-Yahoo! takeover. Let me ask you something. Have you played a game with high stakes? It seems to me that for once Microsoft has bitten more than it can chew.

In a new development Microsoft Corp has conveyed that it may have to borrow money to fund a portion of its $44.6 billion unsolicited offer for Yahoo. This will be a first in the history of the company which was able to single handedly monopolize the PC industry a few years back.

Instead of drawing down its entire $21 billion cash pile, the software giant may take on some debt to finance the cash portion of its 50-50 stock and cash offer for Yahoo.

This is what Microsoft Chief Financial Officer Chris Liddell said in an annual strategy meeting with analysts "It's likely we're actually going to borrow for the first time. It's going to be a mixture of the cash we have on hand plus debt."

However, he did not divulge on what form of debt Microsoft will look for in the capital markets. He also declined to comment on whether Microsoft was already buying Yahoo stock on the open market.

The lifeline handed out by Microsoft is expected to pay Yahoo shareholders either $31 in cash or 0.9509 of a share of Microsoft common stock.

Well in this high stake game future of Yahoo can make or break. What new twists will this bid take remains to be seen. Till next time….

Google rolling in the dough!

Let me tell you on the onset that I am not going to discuss the Microsoft and Yahoo! Deal. What I will share in this post is some statistics and numbers released by Google. Numbers can be very interesting and heartening if they show growth and profit.

Contrary to the reason why its 2 main rivals (you guessed it right- Microsoft and Yahoo!) have been in news, Google has caught the media’s attention through numbers!

Undeterred by Microsoft’s hostile takeover, the search giant continues to report strong growth, with its fourth-quarter revenue up by 51% over the same period the year before.

About the numbers that I talked about. Google generated revenue of $4,83bn for the quarter ending December 31 using generally accepted accounting principles (GAAP). Net income for this period was $1,21bn as compared to $1,01bn in the third quarter last year. As polled by First Call, on a non-GAAP basis, with earnings per share of $4.43, Google missed analyst consensus of $4.44 by a hair’s breadth.

The revenues from outside the U.S. have played a pivotal part in this growth. It is reported that 48% of total revenue in the quarter came from international markets. That is up from 44% in the same period last year.

This is what Eric Schmidt, CEO and chairman of Google had to say “The international market is still very nascent, with tremendous potential with what we can do".

Google doesn’t seem to worry much about the recession that has hit the US of late. The potential economic slowdown in the US is not expected to decline Google’s fortunes. "We have not yet seen any negative impact from the rumors of a future recession," says Schmidt.

What I am waiting for with baited breadth is how these numbers change when the Microsoft and Yahoo! deal goes through.

Google Launches Email Security Services

Google has decided to be in the news for all the right reasons unlike its rival Microsoft.

Last year Google acquired Postini which provided them the security services necessary for it to take on its rivals Microsoft, Cisco, and Symantec among others in the e-mail market.

Using its Postini acquisition, Google is offering security features for any e-mail system. These several new security products are part of its Google Apps platform which will be targeted at organizations that aren't using Gmail and other Web-hosted applications from Google.

The services will include message filtering with spam and malware filtering, message filtering plus enhanced virus detection, content policy management, and other support to stop e-mail data leaks and message discovery.

The message discovery adds one year of message data archiving, retention, and discovery to help companies act in accordance with legal and government regulatory compliance requirements

The message discovery holds special appeal to executives who are all the time worried about employees downloading copyrighted content and leaking confidential information in e-mails.

The packages are available online, directly from Google or through channel partners. The Google Apps Premier Edition, which includes Gmail, Google Docs, Google Calendar, Google Talk, and Start Page for creating a home page, will include policy management and 90-day message discovery services.

Google has kept the rates of its services to a minimum. They range from $3- $25 per user per year.

How successful these security services are remains to be seen. Nevertheless I think I will buy this service to secure my email system.