Wednesday, February 23, 2011

Google's Business Plan

http://www.businessweek.com/technology/content/feb2011/tc20110211_680322_page_2.htm

The link above is to an article discussing a potential flaw in Google's business plan. The author, Jeffrey Rayport, argues that Google's horizontall search engine may not be as applicable in the future. What Rayport means by this is that internet users are finding more specialized, vertically integrated, sites to fulfill their searching needs. For example, websites such as Monster.com (job listings) or Travelocity.com (travel) have specialized purposes and allow internet users to bypass Google completely for a more specialized, complete search. Rayport also points out in his article that Google recognizes the potential for this to hurt earnings (solely generated through advertisements) and has responded. In mid-2010, Google placed a $700 million bid to buy a travel based software company that would put it in direct combination with Travelocity, Orbitz, Expedia, etc.
I found this article to be a very interesting read and had not previously thought about the future of search engines in this way. I agree with Rayport. It is very important for Google to somehow become more vertically integrated as more and more websites are stealing potential Google users.

Sunday, February 20, 2011

"'TiVo' for Reading" thoughts

http://www.businessweek.com/magazine/content/11_09/b4217040967211.htm

The above link is to a businessweek article that discusses new applications which allows users to save online articles to a mobile device. The new apps, currently being offered by a few websites, were developed in response to those who have found interesting, long articles to read, but do not have the time at that moment to read them. Thus, this application allows users to save the article to read in the future. This technology is becoming increasingly popular. Instapaper and Read it Later, the two largest websites that offer the technology, collectively have more than 4 million subscribers.
I think that this is a great idea. There are many times when one comes across an article at work or home that is enticing to read but not convenient at the time. This application is a proper response to a problem encountered by many. Another interesting point to consider is the potential revenue these applications could be taking away from publishing companies. Since the article that is saved to the mobile device does not include ads, publishing companies may begin to lose out on ad revenue if these applications become large enough.
-Matt Hines