Fortune Magazine On Google Growing Up
prostoalex writes "Fortune Magazine runs a pretty long story on Google, but instead of the usual exultation over PageRank algorithm and Larry-and-Sergey biographies, we get a different message - is Google growing up, and is trouble brewing at Google? Here's Fortune's description of the pre-IPO days: 'Google has grown arrogant, making some of its executives as frustrating to deal with in negotiations as AOL's cowboy salesmen during the bubble. It has grown so fast that employees and business partners are often confused about who does what. A rise of stock- and option-stoked greed is creating rifts within the company. Employees carp that Google is morphing in strange and nerve-racking ways.'"
An open source search engine run by a business with an open source business plan. We should trust closed source business plans as much as we trust closed-source software.
Beings aspergers AND pulling chicks... I enjoy the challenge!
"Google's foes have a much firmer hold on customers", argued some bloke who wrote a book about Google, so is an immediate expert.
Perhaps. But Google has a much firmer hold on the search technology, and at least in this market, the technology is important. Google as a business need to sort out its stuff (perhaps, we don't really know), but I'd guess that the vast majority of the planet who use search engines, use google, and that can't be bad...
Simon.
Physicists get Hadrons!
Google got where it was largely because of the crapness of AltaVista, Yahoo and Hotbot et al; at least some of these have now woken up and smelt the coffee.[1] not new in itself; they've been used for dust extraction in industry for decades
When I am king, you will be first against the wall.
Also, anyone else noticed that Google itself is getting less effective lately? Some searches I make, the first 2 pages all go to the same advertiser's site except all the links have different domain names; I think they're figuring out how to exploit its page ranking. Other searches I get tons of 404s, especially with image search, and the images aren't cached except as thumbnails so it's even more annoying.
But that leads to the question of what Google will do during its reign. ARE we seeing dot-com arrogance? This isn't a new phenomenon - Apple suffered the same thing back in the early 80s.
Well, I look forward to the IPO and seeing where Google intends to go from there.
Well, at least the Google translator is doing well, repeated use seems to have generated: Employees carp that Google is morphing in strange and nerve-racking ways.
And in the background we can hear:
Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers!
*shudders*
The path I walk alone is endlessly long.
30 minutes by bike, 15 by bus.
I think Google has something very important. It is now almost a generic name now for searching. I know a lot of computer illiterate people who have heard of Google, and have no idea that there are other search engines out there, and that google IS the internet's search engine. As long as people hold on to the association of the word "Google" with "searching" they will have no problem.
Summary of the article: /might/ be doomed.
.com bubble survivors, who survived /because/ they were different.
"Oh no, there's this company here that values engineers highly, and does all sorts of wacky non-corporate stuff. How can they survive ?
They must behave more like other dot-com companies, otherwise they
"
All in all an odd article, since google is one of the few prospering
The process of fast gaining power has always resulted in growing arrogance, see for instance Microsoft.
Unfortunately it also applies to Open Source companies. Sigh.
You can defy gravity... for a short time
My company has been around a few more years that Google, but it is going through a similar situation. We have expanded greatly over the past 5 years and now the company is starting to lose focus on what made it a success in the first place. Now the focus is entirely on maximizing revenue and maximizing profits with little care for future consequenses. I expect that my company will be a lumbering giant before too long, just like everyone else in our industry.
Smeghead every day of the week.
I agree. Fortune and Forbes are in general to be distrusted when it comes to reporting on technical companies. Having the best interests of big business at heart is bound to conflict eventually with developing better technology. Not to mention flamebait (search the webpage for "basements").
Time flies like an arrow. Fruit flies like a banana.
For those of you who hadn't heard -- Google recently blew minds in the advertisng scene by being voted the most recognized brand in the WORLD -- over Coke, GM, BMW, FedEx, IBM, Microsoft, you name it.
the voters were senior advertising execs. perhaps you saw this news earlier this year. it was truly a shocker to the usual suspects (the suits), as Google accomplished this amazing feat in just a few years and with virtually ZERO bucks spent on advertising.
Really, going public does only one instantaneous good thing for a company, raise some instant cash, and a good thing for the owners of the company, raise some more cash for them.
After that, it's a big burden, the company has to follow a whole new set of rules, publish accounts, be subject to pressures from shareholders for instant returns, etc. etc.
Anyway, maybe there is an economist out there who can explain to me why it is good for a company to be listed on the stockmarket as opposed to being in private ownerships. Is there any more to it than a one-off sum of instant cash?
Ponxx
Fortune and the author of the article is notorious for taking comments/events out of context and blowing them into a story that is not really there. This certainly fits the pattern - and account of outrageous behaviour followed by carping loosely sourced but based on what competitors (and snubbed suitors = MSFT) are saying. Can any of the "engineers and other geeks attending a conference on Internet search" comment on accuracy of the characterization of Brin's Q&A session as being like "a rock star being asked to play his greatest hit one ... more ... time?"
I don't get it! At the time I found a solution to a problem that was posted, I just wanted to add that solution but could not! What's the point?
The idea that businesses are "run" is somewhat of a illusion. In fact, businesses run themselves once they get beyond a basic size, and they follow rules (like Zipf's law) which (appear to)govern their size and market position.
Of course a business has a culture, and this affects the way it works, but a culture is like a strategy: theft, honesty, quality, exploitation... all choices made in order to improve the odds of winning at what is always a gamble.
No surprise that as Google gets larger, its culture would change: it is entering new domains, needs to adapt, has many new people, each with their ideas and influence.
The "give the customer what they want" culture is very strong at Google, and is the reason for their success up to now. But it is only a successful strategy when it makes a difference. When Google find themselves needing to defend a captive market (of advertisers), fight off hostile intruders (like Microsoft), and change its definition of "customer" (from people doing the searches to people placing adverts), it will also change as a company. This is what is happening now.
Zipf's Law is fun, BTW. It explains the relationship between size and power, in summary it states that in a self-adjusting system, power is balanced out at all levels. I.e. in a market, the largest business will be about twice as large as the two second-largest businesses, about three times as large as the next three businesses, and so on.
The same kind of organic maths applies to cities, earthquakes, and natural languages.
Ceci n'est pas une signature
is all it takes to replicate a smaller google until the cash starts coming.
Sadly, their niche is getting easier to replicate as hardware becomes cheaper.
If the first 50 search results for "cups" want to sell me a cup, I'l l increasingly turn to another search engine to find my information. The next wave though, is the sort of AI that can rate pages or servers based on their quality of information. \
Show me a search engine that can distinguish between an Erica Rose pic and a Mother Teresa pic, without the filename, and I'll invest, until then: it's all just bullshit and more piles of bullshit.
did you mean bullshiat?
We had a long discussion on this just yesterday. I don't see the point of repeating everything again today. But I don't think your conspiracy theories are plausible -- Google were trying to get rid of spam, and may have been over-zealous, but I don't think they were deliberately trying to worsen their search results; they know that will lead to a very quick death.
11.0010010000111111011010101000100010000101101000
I know I don't bother with many links these days - whats the point when I can use google to search for it, the open directory to find by category (or even on the odd occaision Yahoo). Even if I am looking for something similar I don't even have to web crawl for it - you can just Show Similar to find it.
I stating the assumption that others are also doing this - and if this is so, then won't the ability of page rank and similar link "usefulness" evaluation algorithims to produce good results degrade?
Any thoughts....?
Keep Lamb Chop On Top - SETI - The Team Lamb Chop Gauntlet
"Google has grown arrogant, making some of its executives as frustrating to deal with in negotiations as AOL's cowboy salesmen during the bubble. "
So they're frustrating to negotiate with just because someone didn't get their way?
[alk]
I certainly recognize that Google presents a weakness in the web. For example, it could be used for censhorship by simply hiding undesirable information. It is also arguably a critical point in the web infrastructure, with all associated dangers. However, neither of these problems seem too severe. Attempts at censhorship would be overcome by massive numbers of bloggers, who have large readerships and would raise an enormeous outcry if such a thing were to happen. And if Google falls of the edge of the web, there are still plenty other search engines that can take its place.
As for Google being more harmful than the situation in the middle east, I won't comment other than by saying "nice troll".
The gapin flaw with this article is that it take the typical suit view of Google. Google's founders have one overriding principal that guides everything, "Don't be evil," which has lead to it's continued success. Things like "locking in" customers would be the death knell of Google, as it's simplistic and quick search are what attracted it's user base to begin with.
Their successful advertising initiative likewise mirrored the message. People don't like being treated like a commodity to be "locked in", especially not the droves of nerds on the internet. I'd be highly suspect that ANY of the "competing" search companies would steal away any of google's userbase, as they will all try and do things for their own benefit that will ultimately make them seem worse in a head to head comparison against google.
"Give away the stone, let the oceans take and transmutate this cold and faded anchor." - Maynard James Keenan
ITS. ITS. ITS.
You arse.
take a look at this and tell me one single company that has such ideas, technology and momentum as google. This article talks about google as if Google is planning to stay as it is for the next decade, ofcorse not.... they might be stupid(which i doubt), but they have so much ideas and "know-how" in their heads they can re-revolutionize (i cant say that word again :)) the web search
technology.
The lunatic is in my head
The main rational for going public, from the company's point of view, is the fact that employees will be more motivated by the fact that their share options have a cash value set by the market, rather than by the company. There is a secondary reason, which is that having publicly traded shares creates a currency for acquiring other companies.
This logic works best when you are dealing with a company that does not generate dividends. When you have dividends, then shareholders get their rewards from these, and so there is less of a need to go public. The problem is, it takes time for companies to mature to the extent that they pay dividends, and everyone involved is generally too impatient to wait.
Having said that, it's usually the shareholders and the management who decide to go public, not the workers. The main reason for an IPO, in reality, is to allow venture capitalists and management to cash in, generally by capitalizing on market hype. This was the pattern for the nineties - everyone involved in taking the decision is in favour of the IPO: VCs and management want the cash, and the investment bankers and lawyers and accountants want the fees. And the press wants an interesting story. And, sadly, the investing public (including their so-called professional advisers in the mutual funds) seems to be willing to buy into all of this.
There have been suggestions that Google is worth $25 bln, in the press, who generally know nothing. Even if it's half that, then it's still valued at more than 10 times revenue. Just to give you an indication, my company will be criticised by its board, and the analysts, if we pay more than 2 times revenue for a company.
So you are right, that the main interest is a one-off sum of cash, plus the hope that you will be able to attract good staff with options, even though most of the upside from options has already been appropriated by the early movers. And that you might be able to use your inflated stock to buy other companies. It's known as the "bigger fool" theory of company valuation - you might think this is a silly price for our company, but we're sure that you will be able to find a bigger fool further on down the line.
I'm surprised that no one has pointed out a pattern I see here in these 100 incidents:
000) About 2 months ago Microsoft executive Jim Allchin said condescendingly: "Google's a very nice system, but compared to my vision, it's pathetic."
001) Microsoft may have offered to buy Google right before it is set to go public, but Google turns them down.
010) Google changes it's program in an attempt to get better weighted results and gets bad press from business about it.
011) Word "leaks out" that SCO may be planning to sue Google for not paying them the "license" tax.
100) Fortune publishes a negative article about Google's management.
All this happens just as Google is about to offer it's IPO and just as M$ is starting it's own online search engine. Tons of negative press for Google, lots of praise for M$'s "forward thinking" on search technology. Coincidence? I think not...
Davey B. This eCS-OS/2 (Warp 4.52) system uptime is 14 days 06 hrs 42 mins and 22 secs
Not being able to reply to an old, archived news message in Google Groups doesn't seem so strange/bad to me:
Google groups is basically only an interface/archive to the existing internet newsgoup mechanism. If you'd reply to a year-old message in some newsgroup that got archived in google groups... you would be sending a reply to the newsgroup itself, thereby giving the whole readership of that newsgroup (let's say some 200 people) an answer to a year-old question.
Seen in this light, I wouldn't count this against google.
Reinout
Reinout van Rees
Since I taught Sergey when he was an undergraduate at Maryland, and have done some consulting at Google, I can offer some insight on on Forbes article.
The Forbes article is right that Google is very selective in their hiring, and puts a premium on intelligence over experience. However, the claim that you need a degree from a top-10 university is bogus. Actually, one thing that helps a lot is a graduate degree. I believe the current situation is that they have more people on the engineering staff with PhDs than with BS degrees (and more people with Masters degrees than either).
One of the interesting things about the Google engineering team is the number of people who had previously done research in topics such as compiler optimization than have no relation to Google's business. They just hire smart people.
I understand that a number of people are upset by recent changes in Google's ranking scheme and the fact that it isn't public or open source. The thing you have to understand is that Google will be forever in a war with the people doing "Search Engine Optimization". These people don't care about having Google return the best result for "ceiling fan", they just want their web site selling ceiling fans to be on the first page.
The initial papers on the Page Rank algorithm assumed a web that was unaffected by the page ranking algorithm. Now, with Google being a dominate search engine, a substantial part of the web is designed to influence Google's search ranking. Figuring out a search ranking algorithm that works well in that context is very hard, and would be impossible if it was public or open source. The SEO people would 0wn it in a moment.
A problem I've noted with Google in the past few years is that a search for anything that people are trying to sell, like "ceiling fans", mostly returned links to web stores selling that product. The newest ranking for "ceiling fans" includes other links as well, such as informative web sites on installation, manufacturers and energy conservation. So it seems like an improvement to me.
Clearly, managing a company that is growing like Google is growing is a challenge. But I'm not sure anyone else could do it better.
Am I the only offended by condescending tone of the article when it comes to computer scientists and engineers?
..."It's a distraction from pure technology, which is what I love...." ....Brin will become a billionaire. Make that a multibillionaire. So to hear him pining for the good old days sounds strange--
...wrote off SCO as a bunch of sleazebags and went back to playing live-action roleplaying (LARP) games in their mothers' basements, or whatever it is they do when they're not writing device drivers and complaining about clueless end users.
I suspect these people are merely shocked that someone without an MBA degree and who doesn't walk around in a $2000 suit can call the shots in a company, and greatly exaggerate the degree of "arrogance"
--engineers and other geeks attending a conference
Yeah... all those weirdos
What? There are things more important than money???!!!
roller-hockey-obsessed doctoral students in computer science
Computer Science gradstudents must be obsessive, right?
an unspoken caste system has emerged. At the top are the engineers, people in the mold of Brin and Page.
They have people who actually make the product at the top????!!! Why can't they be like every other company and have all those TPS report-demanding MBAs at the top.
From Forbes... linked to in another posting