Is Google Attacking Endeca with Killer Prices?
June 23, 2010
I am not sure if this eWeek story is on the money, but I want to capture the alleged Google pricing for its eCommerce service. Judge for yourself by navigating to “Google Commerce Search 2.0 Gets Refinements, $25K Price Point.” The big dogs in eCommerce include / have included Dieselpoint, EasyAsk, Endeca, SLI Systems, Omniture Mercado, and a handful of other outfits. Price points range from $25,000 right on up to millions, depending on what the customers’ specifications are perceived to be. Keep in mind that scaling and tuning may add significantly to the cost of an ecommerce system.
For me the key paragraph was:
The search engine also added a new price point for Commerce Search. The original entry level price was $50,000 per year for an indexing of 100,000 items and up to 10 million queries. Google has cut that virtually in half to appeal to smaller businesses, or businesses with smaller needs. Businesses may now license Commerce Search for $25,000 per year, which is good for 50,000 products and 3 million queries. Customers will pay more as they scale.
So what? This price point is a bargain until one considers the sentence “Customers will pay more as they scale.” Budget that, grasshopper.
Stephen E Arnold, June 21, 2010
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3 Responses to “Is Google Attacking Endeca with Killer Prices?”
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It’s sad to see that customers are still paying for search on a per-document basis – this antiquated charging model never reflects the complexity of a solution, and as you rightly surmise will lead to massive cost increases as the customer’s business expands.
Being in the market, Google is just getting in line with what other SaaS Site Search offerings are starting at. The mid-market is a great space and that’s why we even saw the need to bring Endeca downstream through our Endeca On-Demand offering. It’s great seeing Google bring more validation to the market by their recent efforts.
Strikes me as a bug on the windshield kind of thing from the Google perspective.