Microsoft to ‘Innovate and Disrupt in Search’–Again
May 19, 2008
My newsreader popped this info tart in front of me this morning: “Kevin Johnson’s Memo On Yahoo & Their Strategy”. The focus of Gigaom’s Web log post is a memo, allegedly by Kevin Johnson. By the time you read this, my pathetic posting will be very old news. You need to read the memo and determine for yourself it it’s the real deal.
I’m commenting because of a series of emails I exchanged this morning about Microsoft’s search strategy. Among the points I made to the eager journalist who was, as my mother used to say, an empty vessel:
- Microsoft is implementing reactions, not a strategy. The cause of these knee-jerk reactions: mostly the Google and a business model challenge. Cloud services are coming round the mountain, and Microsoft can hear the whistle blowing.
- Yahoo has some sharp people and a truck load of search systems–Inktomi, Stata Labs, AllTheWeb.com (provided by Fast Search & Transfer), Flickr’s system, Overture’s search, and more). I’ve been told the company is rushing to be more like Google, which is not perfect, obviously. But Yahoo is grossly heterogeneous, and Google is more homogeneous in architecture.
- Google keeps on grinding forward. In Israel a day ago, Mr. Brin referenced Google’s multi dimensional database progress. My sources tell me that it is not progress; it is a leap frog play.
So “innovate and disrupt in search” is going to boil down to tackling these problems, forcefully, squarely, and well.
First, how many search platforms will Microsoft support? SharePoint, whizzy technology from Microsoft Research, Fast Search & Transfer’s ESP, and the legacy systems that just won’t die. Each search platform is a money hog. Get too many of these critters chomping on the cash, and you will be one poor data farmer.
Second, if–and this is a big if–Microsoft cuts a deal with Yahoo, exactly how will two shot up World War I biplanes contend with Google’s F-35? Time is running out because the GOOG keeps gobbling market and mind share. It is the number one site on the Internet and the world’s top brand. Quite a one-two punch for piston powered aircraft to shoot down.
Third, Google’s business model is based on advertising. Google wants to diversify, and Mr. Brin’s comments in Israel a day ago suggest that he wants to put a rocket booster on Google Apps. Interest in cloud-based services continues to creep up, and Google is in a good position to innovate and disrupt in that sector. The company already is innovating and disrupting in search.
We’re watching a clash of cultures and business models. When Microsoft swizzled IBM in the 1980s, it was clever. Google’s not just clever; Google has the technical platform to redefine search and enterprise applications.
Mr. Johnson’s memo does little to convince me that Microsoft–with or without Yahoo–can do much to stop Googzilla from doing Googzilla-type things.
Stephen Arnold, May 19, 2008
Semantra and Conversational Analytics
May 15, 2008
Semantra asserts that it is a “pioneering developer of conversational analystics software”, or so it says in the news release a helpful person sent me.
The companies “conversational analytics” application pushes “beyond key word search” because a user can use “common language commands to retrieve specific information from back end databases”. You can read the Semantra announcement here: www.semantra.com/library/Semantra%202.0%20GA%20FINAL.pdf
The lingo “common language commands” means natural language processing or NLP. A number of vendors have embraced this approach in order to [a] eliminate the need for a specialist to intermediate between an enduser with a question and the database with the answers and [b] allow faster interaction with a database. After all, in business intelligence, the idea is to get the information quickly. Calling up an SAS or SPSS analyst, having that person understand what’s needed, creating the queries, pulling down the data cube, and providing that chunk of info to a manager on a deadline is generally viewed as a problem.
What’s interesting about the Semantra approach is that its tool is designed for Microsoft Dynamics CRM. Microsoft’s push into CRM or customer relationship management has been erratic. To make the situation more interesting, Microsoft is working to move Dynamics (an unhappy amalgam of several products) into the Live.com or “cloud” environment. Semantra is hoping that Microsoft’s CRM offerings will generate even greater demand for third-party tools that tame the Dynamics’ beastie.
ArnoldIT.com analyzed the Dynamics product and technology late in 2007 and found that it was even more complex than Microsoft SharePoint Search. Given the multiple products that make up SharePoint Search, we were surprised to find that the Dynamics team had bested the SharePoint team on this important yardstick. The Dynamics product line up consists of Microsoft’s own technology, Axapta, Great Plains, Navision, and Solomon components. These are mixed-and-matched into a somewhat complex suite of products.
We wish Semantra great success with their system. There will be strong demand for a product that can simplify the Microsoft CRM system. You can get more information about Semantra at wwwsemantra.com. The splash page for Microsoft Dynamics is at www.microsoft.com/dynamics. If you are interested in the ArnoldIT.com analysis of the Dynamics suite, contact seaky2000 at Yahoo dot com. The report costs US$125 via online payment for a password protected PDF.
Stephen Arnold, May 15, 2008
Enterprise Search and Train Wrecks
May 7, 2008
After I completed my interview with the Intelligenx executives, I thought about one of their comments. Iqbal Talib said, “We have many clients who want a point solution, not an enterprise solution”. An executive at Avalon Consulting wrote me today and echoed the Intelligenx comment.
Enterprise search may be a train wreck for more than half of the people who use today’s most popular systems. The Big Name vendors can grouse, stomp, and sneer at this assertion. Reality: Most of these systems disappoint their licensees. When a search system “goes off the rails”, the consequences can be unexpected.
When an enterprise system goes off the rails, the damage is considerable. Even worse, moving the wreckage out of the way is real work. But even more difficult is earning back the confidence of the passengers.
A Case Example
A major European news organization licensed a Big Name system. The company ponied up a down payment and asked for a fast-cycle installation. After six months of dithering, the Big Name admitted that it did not have an engineer available who could perform the installation and customization the paying customer wanted.
The news organization pulled the plug. The company then licensed one of the up-and-coming systems profiled in Beyond Search. The revamped system was available in less than three weeks at a fraction of the cost for the Big Name system.
The new system works, and it has become a showcase for the news organization. For the Big Name, the loss of the account eroded already shaky finances and became the talk of cocktail parties at industry functions.
Ever wonder how much churn Big Name enterprise search vendors experience in a year? You can get a good idea by comparing the customer lists of the best-known enterprise search vendors. The overlap is remarkable because large companies work their way through the systems. Now more are turning to up-and-coming vendors’ systems. The Big Names are facing some sales push back. Take a look at the financials for publicly traded search vendors. Look for days-sales-outstanding data. Look at the cash reserves. Look at the footnotes about restating financials.
What you may find is that fancy dancing is endemic.
How Many Search Systems Does One Company Need?
What haunts me is the overlap among vendors. Early in 2003, I conducted a poll of Fortune 1000 companies. The methodology was simple: I sent an email with several basic questions to people whom I knew at 150 different large organizations. I received a response rate of about 70 percent, which was remarkable. One question I asked five years ago was, “How many enterprise search systems do you have?”
Microsoft Chomps and Swallows Fast
April 26, 2008
It’s official. On April 24, 2008, Fast Search & Transfer became part of the Microsoft operation. You can read the details at Digital Trends here, the InfoWorld version here, or Examiner.com’s take here.
John Lervik, the Fast Search CEO, will become a corporate vice president at Microsoft. He will report to Jeff Teper, the corporate vice president for the Office Business Platform at Microsoft. The idea–based on my understanding of the set up–is that Dr. Lervik will develop a comprehensive group of search products and services. The offerings will involve Microsoft Search Sever 2008 Express, search for the Microsoft Office SharePoint Server 2007, and the Fast Enterprise Search Platform. Despite my age, I think the idea is to create a single enterprise search platform. Lucky licensees of Fast Search’s technology prior to the buy out will not be orphaned. Good news indeed, assuming the transition verbiage sets like hydrated lime, pozzolana, and aggregate. Some Roman concrete has been solid for two thousand years.
This is an example of Roman concrete. The idea of “set in stone” means that change is difficult. Microsoft has some management procedures that resist change.
A Big Job
The job is going to be a complicated one for Microsoft’s and Fast Search’s wizards.
First, Microsoft has encouraged partners to develop search solutions for its operating system, servers, and applications. The effort has been wildly successful. For example, if you are one of the more than 80 million SharePoint users, you can use search solutions from specialists like Interse in Denmark to add zip to the metadata functions of SharePoint, dtSearch to deliver lightning-fast performance with a natural language procession option, Coveo for clustering and seamless integration. You can dial into SurfRay’s snap in replacement for the native SharePoint search. You can turn to the ISYS Search System which delivers fast performance, entity extraction, and other other “beyond search” features. In short, there are dozens of companies who have developed solutions to address some of the native search weaknesses in SharePoint. So, one job will be handling the increased competition as the Fast Search team digs in while keeping “certified gold partners” reasonably happy.
This is a ceramic rendering of two of the “10,000 Immortals”. The idea is that when one Immortal is killed, another one takes his place. Microsoft’s certified gold partners–if shut out of the lucrative SharePoint aftermarket for search–may fight to keep their customers like the “10,000 Immortals”. The competitors will just keep coming until Microsoft emerges victorious.
Traditional Publishers: Patricians under Siege
April 19, 2008
This is an abbreviated version of Stephen Arnold’s key note at the Buying and Selling eContent Conference on April 15, 2008. A full text of the remarks is here.
Roman generals like Caesar relied on towers spaced about 3000 feet apart. Torch signals allowed messages to be passed. Routine communications used a Roman version of the “pony express”, based on innovations in Persia centuries before Rome took to the battlefield.
Today, you rely on email and your mobile phones. Those in the teens and tweens Twitter and use “instant” social messaging systems like those in Facebook and Google Mail. Try to Imagine how difficult it would be for Caesar to understand the technology behind Twitter. but how many of you think Caesar would have hit upon a tactical use of this “faster that flares” technology?
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