Google: Listen Up. The IPO Harmed You
April 8, 2012
I love inputs from the bleachers. Well, anyone who is anyone knows that Google’s going public in 2004 was the fatal step, the digital equivalent of Adam’s going for the apple. Point your browser thing at “How The IPO Ruined Google.” The idea is that Google has lost its original focus. The company is chasing the social media sector which means Facebook. The author points out some social media goofs by the GOOG. He writes:
How’d Orkut do? Do you remember it? Didn’t think so. Sidewiki? Failed. Friend Connect? Gone. Google Wave didn’t even get past testing. Now we’ve got Google Plus, which is showing some of the worst engagement numbers of any major social media site.
Google, now under the management whiz Larry Page is focusing, or I think that is what he said in his Update memorandum that big bets are needed. So focus is there, right?
Several observations:
First, I think that advice to big companies is a tricky business. Most big companies find outsiders’ inputs more like background information than course corrections.
Second, Google is going to be a tough outfit to change even when one is the CEO. The start up mentality has been smothered under the hard facts that Apple’s business model is performing better than Google’s business model. Facebook chugs along, apparently untroubled by Googzilla’s desire to feast on the haunches of prime zuck. Google has managed to build a one-trick pony but increasingly has to find inspiration for new ideas elsewhere.
Third, Google is not about search. I remember reading that social is the new Google. So search is a subset of social.
Google is, what, 12, 13 years old. If I consider Backrub, Google is 14, maybe 15 years old. Like Lycos and Yahoo, Internet companies face a number of challenges. Chief among them is management. Technology is important, but making the right decision at the right time is part of the magic.
Perhaps the pundits who make suggestions about what Google should may find magic more useful than inputs?
Stephen E Arnold, April 8, 2012
Sponsored by Pandia.com
Woola Economics for Social Media
April 2, 2012
I admire some azure chip consultants. Now I understand that hiring of middle school teachers and home economics majors have fallen on hard times. Even people with juco degrees in information technology are struggling to find purchase on today’s economic ice hills. Enter Woola economics: fun, fanciful, and better than a job at Kentucky Fried Chicken doing inventory.
It stands to reason that the more motivated college grads and the progeny of helicopter parents would turn to mathematical pursuits. A good example is the story in Virtual Strategy, a heck of a title, but I don’t know what virtual strategy has to do with paying for petrol or retiring one of those pesky education loans. The story “Social Media Advertising Revenue to Show Steep Growth, Reaching $25 Billion by 2015 and $114 Billion by 2020” caught my attention.
Those are decent numbers, particularly the $114 billion. Here’s the best part in my opinion:
Further the Worldwide Social Media revenue is forecast for consistent growth with 2012 revenue totaling $14.9Bn, and the market is projected to reach $29.1Bn in 2014, $58.1Bn in 2016, will touch magical mark of $100Bn towards early part of 2018 and by the end of 2020 it will grow substantially closing at around $233bn.
Note the $233 billion.
Let’s assume that this estimate is accurate, give or take a few billion. Among the azure chip crowd involved in virtual strategy, what’s the risk?
Consider the Google. Replete with mathematicians and stats savvy, socially adjusted wizards, Google would look at these numbers and ask, “What can we do to get as much of this money as possible?? The answers to this question have in our exercise in virtual strategy concluded that Google must dominate social media. We can see the outcome of this type of thinking in Google’s efforts in social media and making everything from colanders to clicking on a Web page a social experience.
The problem, of course, is that social media has some established outfits like Facebook. There are quasi social operations which seem to appeal to specific demographics like Pinterest. And there are giants like Microsoft who want to convert making a phone call into a sharing opportunity.
Are these companies really social? Nah, these outfits are trying to make a buck. The social thing is the current hobby horse. The azure chip crowd knows that wild and crazy estimates are like charcoal starter fluid on dry wood shavings. The bigger the number, the more the frenzy.
Wild and Crazy Analysis: The New March Madness
March 18, 2012
You must read each and every word of the article “Is Google Facing the Beginning of the End?” Now that you have read the write up, answer these questions. Take your time. You won’t get a grade, but you will have an opportunity to figure out whether you are more like the former Forrester “expert” or more like the addled goose in rural Kentucky.
Question 1: Is Google simplifying?
My view is that Google is more complex than ever. Want to set up a Google Custom Search Engine? You will need more skill that it takes to fire up the word processor and write a Forrester- or Gartner-type generalization.
Question 2: Is IBM focused?
My view is that any company which buys overlapping and duplicative products and bets its future on selling expertise to help companies make those products work may not fly here in Harrod’s Creek. IBM is a consulting firm but it has quite a few other activities and many activities means a lack of focus. How does one explain Lucene based Watson and the purchase of i2 Group? A lack of focus is my answer.
Question 3: Is it a surprise that Microsoft faces challenges?
I believe that the larger an outfit becomes the larger the challenges. And if there are not enough external challenges, the insiders will whip some up. My view is that a large corporation is a fiesta of challenges.
Question 4: Is Netscape a factor in anyone’s life today?
Wow, I did not expect Netscape as a case example from an azure chip consultant. My view is that Netscape had its moment in the sun and management muffed the bunny. Sure, Microsoft played a part, but there is no pass for lousy management.
Question 5: Did Sun forget what it was or was Sun an example of transcendentally bad management?
Sun was the engine of the Internet and then it wasn’t. Oracle’s acquisition of Sun may drag Oracle under water. Once again, my answer is management. Period.
Question 6: Do we need to be reminded that Yahoo is the poster child for Silicon Valley’s decline? At Yahoo, different management teams tried to make decisions which would move the company forward. What happened was a weird environment in which silos crowded out the corn fields. Yahoo makes clear that when there is money, an Internet centric company will try many things and avoid the big things. I submit that Yahoo embodies the “Yahoo principle.” I wish Laurence Peters were alive.
Question 7: Is Google edging toward evil?
My answer is that Google is doing what publicly traded companies do. Management is the issue. Amazon, Apple, Facebook, Microsoft, the US government, and any other exogenous entity and action are not the problem. After 13 years, Google will be Google.
Question 8: is Facebook error prone?
My answer is that Facebook manifests the same type of errors one associates with a company run by a founder who is essentially technical and not too keen on the MBA type of life experience. More excitement will be forthcoming from Facebook. The train is in motion and the tracks are not true.
Question 9: Is there a 1-2-3 recipe for killing a company?
My answer: There are 50 ways to leave a lover and just one way to kill a company: no money. Without dough, no go. You can put lipstick on a pig, but if you have money, it will be called art. If you are broke, you are a can or two short of a six pack.
Did your answers match mine?
Stephen E Arnold, March 17, 2012
Sponsored by Pandia.com
HP, Autonomy: Baby Tigers on the Loose
March 12, 2012
To many, it may seem that $10.3 billion is a large sum to pay for a software company. However, that’s exactly what Hewlett Packard paid to acquire Autonomy late last year.
The company is now embracing a powerful new marketing metaphor to describe the costly acquisition as a baby tiger.
In “HP: ‘Baby Tiger’ Autonomy Will Drive Channel Business,” we learn about HP’s Information Management division, which includes Autonomy and Vertica, the business intelligence vendor also acquired by HP in 2011. HP will apparently be focusing on getting Autonomy incorporated into HP during the first half of this year, and expect to see financial “synergies” in the second half. The CRN article tells us more:
One thing Autonomy lacks is a services arm, but HP expects to fill the gap with its own services oriented partners. The big question, though, is when partners will actually be able to start getting into this side of the business. [HP CEO] Whitman often describes Autonomy as a “baby tiger” that is vulnerable within the giant organization that is HP, and she has made it clear that she has no intention of rushing it into the channel.
Last November, HP launched two Autonomy powered appliances. One of these archives structured data; the other makes that data available for e-discovery purposes. Sounds good, but why the strong comparison to jungle cats? Autonomy co-Founder and CEO Mike Lynch, vice president of HP’s Information Management division, says simply, “It is Autonomy’s ability to understand meaning that gives the technology such differentiation.”
Our thoughts on the marketing comparison? We’ve been close to baby tigers, and while fiercely precious, these cats are dangerous. Competitors should beware. Autonomy is said to be adding between 50 and 60 cloud customers per year.
Baby tigers have teeth.
Andrea Hayden, March 12, 2012
Sponsored by Pandia.com
Existential Crisis in the SEO Field
March 11, 2012
SEO is trying to preserve its credibility and relevance in a shifting world. Search Engine Journal asks, “Is SEO Really SEO Anymore? Index Search Down 50%, Apps and Social Search Exploding.”
Search engine optimization, a young profession (compared to, say, farming or tax collecting) is going through an existential crisis. Why so soon? Writer Gabriel Gervelis explains:
“An earlier post of mine for SEJ stated that index search is down fifty percent. Search has moved to sites like Wikipedia and other popular content sites. Search in the app store is up. People have made a the statement that they prefer branded content from apps they trust, rather than sorting through links on a SERP [Search Engine Results Page]. “When the term ‘search engine’ is actually in your job title (or at least in your job description), that’s a change that demands your attention.”
Indeed. Gervelis wonders how SEO professionals will refocus their efforts on social platforms and mobile apps. For the first, he suggests, they will have to invest more in the end user’s experience. As for the apps market, Apple’s recent acquisition of app organizing tool Chomp highlighted the importance of the apps revolution in Gervelis’ mind.
In the end, the article ponders: is even the title itself, “search engine optimization expert”, obsolete? Marginalized, for sure.
Cynthia Murrell, March 11, 2012
Sponsored by Pandia.com
Sales Needs at Accounting Consultancy Accenture?
March 5, 2012
Short honk: I am decades away from the Booz, Allen & Hamilton world. However, I pay attention when senior insiders perform a disappearing act and the top dog talks about the new guy. Navigate to “Accenture Technology Chief in Abrupt Departure.” The factoid (assuming it is accurate, of course) upon which my attention seized was:
Before that he [the new guy] also led sales at Hewitt Associates.
One word fired like a green light laser, “sales.” My view is that experience in benefits consulting is pretty much irrelevant. Accenture wants to ramp up the dough from its technology practice. The old guy may have known bits and bytes, but the new guy has the key qualification—sales. The need for sales reaches to the heights of MBA-land and accounting excitement.
Worth watching. Try searching for these high level partners. Not much there there, is there?
Stephen E Arnold, March 5, 2012
Sponsored by Pandia.com
The Old New Fast
March 2, 2012
The Fast Search & Transfer story continues to unfold. I think the approach is closer to one of those 1950 motion picture serials or chapter plays. Just when I thought Don of Don Daredevil Rides Again as a goner, he would survive. Wow, I need some popcorn.
With the sale of Fast Search & transfer to Microsoft in 2008, the subsequent hassle over Fast Search revenues and the activities of its Board of Directors, the search system morphed into FS4SP (great name!). The former Fast Search wizards and mavens scattered to the four winds.
Some remain at Microsoft. Others set up new companies which have moved beyond the Fast Search technology like Attivio. Consulting and service firms have flowered. A great example is Comperio which describes itself with this tagline: Search Matters.
Comperio is venturing outside of the Home of the Vikings with a new seminar series in conjunction with Microsoft (the world’s leader in search because there are more than 100 million SharePoint installations and an equal number of findability challenges) and BA Insight. You can read about the seminars here, but the details are sketchy. My hunch is that the content will praise SharePoint and then explain why one should license tools from the hosts, but that’s the way Microsoft’s ecosystem works.
The Comperio Web site ran an interesting interview with a former Fast Search wizard, Bjørn Olstad in “Hard Job Keeping Search Technology in Norway.” The interview summary contained some “search gems,” which I wanted to capture. So, check out the original and here are the points which I noted. My observations to myself appear in italics and in blood red, almost the color of financial red ink, but a tad darker:
- The demand for enterprise search has been increasing. The cause is the increase in unstructured data. Okay, great insight. I was only partially aware of the growth in digital information.
- Comperio has 50 employees and is a system integrator, Microsoft Partner of the Year, and specializes in the use of search technology to integrate disparate sources of information. Comperio is thriving like other SharePoint solution providers. I think this is because SharePoint and FS4SP needs quite a lot of love and care, diaper changing, baby oil, and spoon feeding. If the system worked, not so much effort would be needed, but that’s just my opinion.
- Comperio is hiring for its Oslo and London offices. The more SharePoint, the greater the need for mechanics to fix the system. Another opinion, maybe a hypothesis.
We cover a number of articles about SharePoint. It is clear that SharePoint business is booming, and I think a company which understands the old Fast can make a lot of new money because the issues which contributed to the Fast revenue shortfall may lurk in the dark corners of a SharePoint implementation.
So the old new Fast is back and generating significant revenue for the former Fast specialists who are now focused on SharePoint and the new Fast. Makes sense, right?
Stephen E Arnold, March 2, 2012
Sponsored by Pandia.com
Oracle Faces Challenges After Acquiring Endeca
February 6, 2012
Forrester’s Boris Evelson recently reported on Oracle’s October acquisition of the enterprise search and data management solution provider Endeca in the blog post “Oracle Leapfrogs BI Competitors by Acquiring Endeca.”
In the post, Evelson argues that this was a smart move on the part of Oracle because it takes the company from playing mostly in the traditional BI space to integrating unharmonized data sources and performing search-based BI.
With this in mind Evelson remarks:
This acquisition now really differentiates Oracle’s BI suite, but it will not be without significant challenges for Oracle and Endeca. OBIEE is the strategic BI platform at Oracle. No ifs, ands, or buts. Even the ubiquitous Essbase is taking a back seat by being positioned mostly as a cubing engine with OBIEE as a recommended front end. As the first order of business, I expect the combined teams to first come up with an SQL or MDX wrapper for Endeca so that OBIEE can be used to access its index. Beyond that, I expect that Oracle will position Endeca as a special-purpose BI tool.
Our opinion on the matter is this, Endeca’s technology is secondary to the firm’s consulting services “wrapper” and scaling, particularly for big data in near real time, remains a challenge. We don’t have a dog in the fight and some of the pundits, not only have a dog, but have a stake in the dog show.
Jasmine Ashton, February 6, 2012
Sponsored by Pandia.com
Blue Chip Consultant Makes Big, Wild Prediction
December 24, 2011
At Beyond Search we love crazy unsubstantiated numbers — Here is a keeper. The Economic Times of India reported this week on the projected value of worldwide financial assets in the article Global Financial Assets, Including India’s to be Worth $31y Trillion by 2020: McKinsey.
According to the article, a report prepared by the McKinsey Global Institute, the projected worth of financial assets in 2020 would be nearly double the value of the $198 trillion witnessed last year. Emerging economies made up 21 percent of the global financial assets in 2010 and grew four times the rate of mature economies, 16.6 percent annually over the last decade.
The report stated:
Depending on economic scenarios, we project that emerging market financial assets will grow to between 30 and 36 per cent of the global total in 2020, or $114 to $ 141trillion.. China’s financial assets could be as much as $ 65 trillion by then, and India’s could reach $8.6 trillion.
Yep, global and trillions. Why estimate just the size of the enterprise search market when you can size the world? I call this spreadsheet fever.
Jasmine Ashton, December 24, 2011
Sponsored by Pandia.com
Booz Allen Buzzword Blizzard
December 22, 2011
Yep, I used to work there. Booz, Allen & Hamilton, not the chopped up outfits that exist today. To get a feel for the buzzword blizzard, point your browser thing at “InnoCentive and Booz Allen Hamilton Form Strategic Alliance.” Now here’s a Frosty brain freeze buzzword style:
Available now, the integrated Booz Allen Hamilton-InnoCentive alliance provides commercial and government organizations with:
- The Open Innovation Diagnostic Program that includes vision and objectives definition, benchmarking, readiness, gap analysis, and strategic recommendations
- Leadership best practices and organization-wide training
- Challenge identification, prioritization, formulation, and execution
- Multi-channel Challenge program design and roadmap development
- Community (i.e. problem solver) development and engagement strategies
- Measurement and continuous improvement
- Supporting enabling technologies, platforms, and tools
Not much I can say. The pain is right behind my eyes and below my now numbed brain. This is azure chip consultant lingo. Too bad.
Stephen E Arnold, December 22, 2011
Sponsored by Pandia.com
-
- Subscribe to Beyond Search
Feature archive
News archive
-
