History of Googles Development

History of Googles increment1.1.0 HISTORY OF GOOGLEGoogle began in January 1996, as a question project by Larry Page, who was soon joined by Sergey Brin, when they were both PhD students at Stanford University in atomic number 20. They hypothesized that a lookup rail exertment locomotive that analyzed the relationships between electronic networksites would shit bettor rank of results than existing techniques, which ranked results according to the number of cartridge holders the attend experimental condition appe bed on a foliate. Their seem engine was origin whollyy nicknamed BackRub because the system harmonize out backlinks to estimate the importance of a site. A small hunting engine called Rankdex was already exploring a similar st vagabondgy.Convinced that the rascals with the approximately links to them from sensitive(prenominal) highly applicable entanglement pages must be the near germane(predicate) pages associated with the reckon, Page and Brin test ed their thesis as dismantle of their studies, and laid the launching for their hunt club engine. Originally, the wait engine used the Stanford University weather vanesite with the domain google.stanford.edu. The domain google.com was registered on 15 September 1997, and the phoner was incorporated as Google Inc. on 4 September 1998 at a friends garage in Menlo Park, California. The total sign investment raised for the new come with amounted to al most(prenominal) $1.1 jillion, including a $100,000 check by Andy Bechtolsheim, one of the founders of Sun Microsystems.Both Brin and Page had been against using denote pop-ups in a search engine, or an advertising funded search engines model, and they wrote a research paper in 1998 on the topic while exempt students. However, they soon changed their minds and early on allowed simple textbook ads.In meet 1999, the guild moved into offices in Palo Alto, home to several otherwise illustrious Silicon Valley applied science st artups. After readily out maturement two other sites, the federation leased a complex of take a leakings in Mountain View, California at 1600 Amp dartheatre Park stylus from Silicon Graphics (SGI) in 2003. The comp many(prenominal) has remained at this location ever since, and the complex has since come to be cognise as the googolplex (a play on the denomination googolplex). In 2006, Google bought the property from SGI for $319 one million million.1.1.1 hang of GoogleThe name Google originated from a misspelling of the word googol, which refers to 10100, the number represented by a 1 followed by one hundred zeros. Having found its way increasingly into everyday language, the verb google was added to the Merriam Webster Collegiate Dictionary and the Oxford English Dictionary in 2006, meaning to use the Google search engine to obtain entropy on the Internet.1.1.2 Growth of Google opus the primary crease interest is in the entanglement issue bena, Google has begun experim enting with other markets, much(prenominal) as radio and print man raceations. On 17 January 2006, Google announced the purchase of a radio advertising company dMarc, which provides an automated system that allows companies to advertise on the radio. This will allow Google to amalgamate two niche advertising media-the Internet and radio-with Googles ability to laser-focus on the tastes of consumers. Google has excessively begun an experiment in selling advertisements from its advertisers in offline newspapers and magazines, with select advertisements in the scratch Sun-Times. They stupefy been filling unsold space in the newspaper that would rent normally been used for in-house advertisements.1.2.0 GOOGLE PRODUCTS AND SERVICESGoogle result weakenment philosophy involves quick and continuous innovation, with frequent releases of early-stage crops that they then iterate and improve. Google often make products for sale early in their development stages by posting them on Google Labs, at test locations online or directly on Google.com. If their drug drug exploiters find a product legal, they promote it to beta status for additional testing. Once they ar at rest that a product is of high step and utility, they remove the beta go after and make it a core Google product. Their main products and service be exposit below.1.2.1 Google.com hunt club and PersonalizationThey are focused on building products and services on the Google web sites that benefit their users and let them find relevant information quickly and easily. These products and services includeGoogle Web attempt, In addition to providing easy nark to billions of Web pages, they have integrated special features into Google Web Search to befriend pot find exactly what they are looking for on the web.Google date Search, Google Image Search is a searchable index of images found across the web. To function the usefulness of Google Image Search, Google offers advanced features, such as inquisitive by image size, format and coloration and restricting searches to specific web sites or domains.Google Video, Google Video lets users upload, find, take in and share video fill adult malewide.iGoogle and Personalized Search, iGoogle connects users to the information that is most useful and important to them in an easy-to-use and use of goods and servicesizable format. Users add gadgets and themes renderd by Google and developers to pee a powerful and personalized homepage and arrange the electrical capacity the way they want.1.2.2 industriousnessInformation fabricated by a single user becomes much more(prenominal) than valuable when shared and combined with information from other sight or places. in that respectfore their strategy for products Google develop in this space is simple develop tools for their users to create, share and communicate any information generated by the user, thus devising the information more useful and manageable. Examples o f products Google have developed with this strategy in mind includeGoogle Docs, Google Docs allows their users to create, view and edit documents, spreadsheets, and presentations from anywhere using a browser. These documents are useful to their users as they are accessible anywhere profits access is available, manageable as they are stored within their servers and automatically approve up, and sh firmamentble in that they allow real while editing with co-workers and friends everywhere the internet.Gmail, Gmail is Googles save webmail service that comes with built-in Google search engineering science to allow searching of emails and over s scour gigabytes of storage, allowing users to keep their important messages, files and pictures. Google serve small text ads that are relevant to the messages in Gmail.Orkut, Orkut modifys users to search and connect to other users by means of networks of sure friends. Users pile create a profile, personal mail boxes, post photos and joi n or manage online communities.Google Sites, Google Sites allows users to easily create, update and publish content online without technical expertise, with cover over who roll in the hay see and update the site. Google Sites supports a variety of information such as videos, calendars, presentations, spreadsheets, discussions and texts.YouTube, YouTube is an online community that lets users worldwide uploads, share, watch, rate, and comment on videos, from user generated, niche professional, to premium videos. YouTube is in addition a video platform providing habitual purpose video resources to the web community. YouTube videos are embedded in blogs, brotherly networks and web applications, and YouTube programming interfaces are utilized by many an(prenominal) registered developers to create third- diey products and services. In addition, YouTube offers a range of video and interactive formats for advertisers to r all(prenominal) their mean audience.1.2.3 ClientGoogle Toolba r, Google Toolbar is a free application that adds a Google search box to web browsers (Internet Explorer and Firefox) and improves user web experience finished features such as a pop-up blocker that blocks pop-up advertising, an autofill feature that completes web forms with information saved on a users computer, and customizable merelytons that let users search their favorite web sites and balk updated on their favorite feeds.Google Chrome, Google Chrome is an open-source browser that combines a stripped design with technologies to make the web faster, safer, and easier to travel.Google Desktop, Google Desktop lets people perform a salutary-text search on the contents of their own computer, including email, files, instant messenger chats and web browser history. Users can view web pages they have visited even when they are not online. Google Desktop in addition includes a customizable Sidebar that includes modules for weather, persuade tickers and news.1.2.4 Google GEO-Map s, Earth and local anestheticGoogle Earth, Google Earth lets users see and explore the world and beyond from their desktop. Users can fly sheet virtually to a specific location and learn about(predicate) that area through detailed satellite and aerial images, 3D topography, street maps and millions of information points describing the location of businesses, schools, parks and other points of interest close to the globe. Google Earth includes Sky, an galactic imagery library with images of over 100 million stars and 200 million galaxies, and Ocean, with a detailed bathymetric map of the earths ocean floors.Google Maps, Google Maps cooperates people navigate map information. Users can look up salutees, search for businesses, and get point-to-point thrust directions-all plotted on an interactive street map or on satellite imagery. Google Maps includes Street View, 360-degree street-level imagery available in several regions most the world, and Google Transit, which provides up -to-date information on local transit options in many cities.1.3.0 GOOGLE FINANCIAL STATUS TO DATEThe first funding for Google as a company was secured in August 1998 in the form of a $100,000 USD piece from Andy Bechtolsheim, co-founder of Sun Microsystems, foxn to a corporation which did not yet exist.On June 7, 1999, a round of equity funding totaling $25 million was announced the major investors being rival venture capital firms Kleiner Perkins Caufield Byers and Sequoia Capital.In October 2003, while discussing a possible sign public offering of shares (initial offering), Microsoft admittanceed the company about a possible partnership or merger. However, no such deal ever materialized. In January 2004, Google announced the hiring of Morgan Stanley and Goldman Sachs Group to arrange an IPO. The IPO was projected to raise as much as $4 billion. On April 29, 2004, Google made an S-1 form SEC filing for an IPO to raise as much as $2,718,281,828.In May 2004, Google officially c ut Goldman Sachs from the IPO, going Morgan Stanley and Credit Suisse First Boston as the vocalize underwriters. They chose the unconventional way of allocating the initial offering through an auction (specifically, a Dutch auction), so that anyone would be able to participate in the offering. The smallest required account balances at most authorized online brokers that are allowed to participate in an IPO, however, are around $100,000. In the run-up to the IPO the company was forced to slash the scathe and size of the offering, precisely the process did not run into any technical difficulties or result in any significant legal challenges. The initial offering of shares was sold for $85 per share. The public valued it at $100.34 at the close of the first day of trading, which saw 22,351,900 shares change hands.Googles initial public offering took place on August 19, 2004. A total of 19,605,052 shares were offered at a price of $85 per share. The sale raised US$1.67 billion, and gave Google a market capitalization of more than $23 billion. The vast majority of Googles 271 million shares remained under Googles control. Many of Googles employees became instant paper millionaires. hayseed, a adversary of Google, also benefited from the IPO because it owns 2.7 million shares of Google.Googles taxation ripening rate has been slowing, but for the first time since it went public, the companys shadower-to-quarter revenue declined.The company, as is customary, reported results that most business only dreams of, recession or not. Its net income grew 8 part to $1.42 billion and its revenue, excluding commissions paid to advertising partners, grew 10 portion to $4.07 billion. It generated free cash meld of $2 billion for the quarter, the vast majority of it derived from money advertisers collapse Google when people ruffle on ads next to search results.But everything is most in spades not coming up roses. Googles revenue, after ascending steadily quarter after quarter, peaked in the fourth quarter and declined 3 percent in the first quarter. Googles business is still relatively strong, and its been hit by the recession less than many in the tech world, but its been hit nonetheless.1.4.0 CULTURE AND EMPLOYEESGoogle agree great pride in their company stopping point and embrace it as one of their fundamental strengths. Their culture encourages the iteration of ideas to address complex technical challenges. In addition, Google embrace individual thinking and creativity. As an example, Google encourage their engineers to devote as much as 20% of their time to work on independent projects. Many of their significant new products have come from these independent projects, including Google newsworthiness, AdSense for content and Orkut.Google began as a technology company and have evolved into a software, technology, internet, advertising and media company all rolled into one. Google take technology innovation very seriously. Google compete agg ressively for talent, and its people take up their innovation, technology development and operations. Google strive to hire the best computer scientists and engineers to help us solve very significant challenges across systems design, artificial intelligence, mould learning, data mining, net working, software engineering, testing, distributed systems, cluster design and other areas. Google work wicked to provide an environment where these talented people can have fulfilling jobs and produce technological innovations that have a positive effect on the world through daily use by millions of people.Google have assembled what Google believe is a highly talented group of employees. Despite their rapid growth, Google constantly prove to maintain a small-company feel that promotes interaction and the exchange of ideas among employees. Google try to smirch corporate hierarchy to facilitate meaningful communication among employees at all levels and across departments. Google believe th at considering multiple viewpoints is critical to developing effective solutions, and Google begin to build consensus in making decisions. While teamwork is one of their core values, Google also significantly reward individual accomplishments that contribute to their overall success. As Google grow, Google memory to move on to provide compensation structures that are more similar to those offered by start-ups than constituted companies. Google focus on very significant rewards for individuals and teams that build stupefying things that provide significant value to us, their advertisers and their users.At December 31, 2008, Google had 20,222 employees, consisting of 7,254 in research and development, 8,002 in gross revenue and marketing, 3,109 in general and administrative and 1,857 in operations. all of Googles employees are also equity holders, with significant collective employee ownership. As a result, many employees are highly motivated to make the company more successfu l.1.5.0 GOOGLE BUSINESS MODELAs with its technology, Google has chosen to ignore conventional science in designing its business. The company started with seed money from angel investors and brought together two competing venture capital firms to fund its first equity round. While the dotcom boom exploded around it and competitors spent millions on marketing campaigns to build brand, Google focused instead on quietly building a crack search engine.The word quickly spread from one satisfied user to another. With superior search technology and a high volume of profession at its Google.com site, Googles managers identified two initial opportunities for generating revenueAdvertisingSearch services1.5.1 Google grows and business bloomsOver time, these two business lines evolved into complementary networks. Google AdWords advertisers create ads to drive qualified traffic to their sites and generate leads. Google publishing partners pass those ads targeted to relevant search results po wered by Google AdSense. With AdSense, the publisher shares in the revenue generated when readers click on the ads.For sites wishing to have more control over their intranet or site searches, Google developed the Google Search Appliance, a scalable and secure gizmo that delivers accurate search results across any number of documents.Google continues to think about shipway in which technology can improve upon existing ways of doing business. New areas are explored, ideas prototyped and budding services nurtured to make them more useful to advertisers and publishers. However, no matter how distant Googles business model grows from its origins, the root corpse providing useful and relevant information to those who are the most important part of the ecosystem the millions of individuals around the world who rely on Google search to provide the answers they are seeking.1.5.2 Google AdWords for AdvertisersGoogle designed AdWords for advertisers who want to reach a qualified audience as efficiently as possible. Advertisers select their own target keywords and only pay when customers click on their ads. Its easy to create ad text and manage online advertising accounts with no large-mouthed upfront payment required. All thats demand is five minutes and a credit card. The ads appear across Googles growing roster of partners, including thousands of sites from America Online to the Washington Post, and are targeted to relevant search and content pages.Googles experienced sales and service team optimize campaigns for our larger advertisers. Our stave of AdWords experts work with advertisers to select the appropriate keywords and generate the matching creative, then conservatively monitor the campaign to improve its carrying into action over time by win in a flashing keywords and rewriting copy fundamentd on what is most effective. Theres no limit to the number of keywords that an advertiser can select and each keyword can be matched with a incompatible creative ex ecution. Recent advertisers include Amazon, cisco Systems and Staples.Google provides all of its advertisers with a full complement of reporting services to enable fine tuning of campaigns and real-time intelligence about which components are playacting best. Advertisers can further increase efficiencies by targeting their campaigns to specific geographies or languages.1.5.3 Google AdSense and advertisersGoogle believes relevant advertising can be as useful as search results or other forms of content. And that advertising can enhance the experience for visitors to a publishers website, while helping publishers recover some of their investment in creating content of value. Google AdSense combines Google Search technology with our base of keyword advertisers to deliver ads that precisely target search results or the content on a sites pages, no matter how specialise the subject matter. Advertisers, publishers, and information seekers all profit as a result. sign up for AdSense is ea sy it only takes a few minutes to apply. And our sales team helps customize the program for sites receiving more than 20 million page views a month.AdSense serves relevant ads on content pages search result and content pages as well as dormant domain pages. Google Search serve enable publishers to provide Google web search on their own pages results that can be used to generate revenue with the AdSense for Search program The Google Search Appliance, a scalable and secure device that provides Google quality search across an individual website or intranet.Google Wireless Services deliver Google search results via PDAs, tuner phones and other industrious devices powered by many of the worlds leading wireless service providers..1.0 GOOGLE GLOBAL MARKET SHARENot only does Google continue to dominate the globose search market, its also growing faster than any of its competitors, according to data from comScore.The audience measurement firm estimates that Google sites notched up a t otal of 76.7 billion searches during the month of July 2009, an increase of 58 percent over July 2008. Googles search product therefore continues to govern the global search landscape, accounting for over 67 percent of all queries worldwide, comScore suggests.In comparison, Yahoo and Microsoft which agreed to a ten-year search partnership in July attracted a joint total of 12.2 billion queries through their search services, which represents just 10.7 percent of queries globally. Microsofts product did, however, experience substantial year-on-year growth of 41 percent.2.2.0 GOOGLE KEY TECHNOLOGIESGoogle web search technology uses a combination of techniques to even up the importance of a web page independent of a particular search query and to determine the relevance of that page to a particular search query.2.2.1 PageRank TechnologyPageRank reflects our view of the importance of web pages by considering more than 500 million variables and 2 billion terms. Pages that we believe ar e important pages receive a high PageRank and are more likely to appear at the top of the search results.PageRank also considers the importance of each page that casts a vote, as votes from some pages are considered to have greater value, thus giving the linked page greater value. We have always taken a pragmatic approach to help improve search quality and create useful products, and our technology uses the collective intelligence of the web to determine a pages importance.2.2.2 Hypertext-Matching AnalysisOur search engine also analyzes page content. However, instead of simply scanning for page-based text (which can be manipulated by site publishers through meta-tags), our technology analyzes the full content of a page and factors in fonts, subdivisions and the precise location of each word. We also analyze the content of neighboring web pages to ensure the results returned are the most relevant to a users query.Our innovations dont stop at the desktop. To give people access to the information they need, whenever and wherever they need it, we continue to develop new mobile applications and services that are more accessible and customizable. And were partnering with industry-leading carriers and device manufacturers to deliver these mod services globally. Were working with many of these industry attractors through the Open Handset Alliance to develop Android, the first complete, open, and free mobile platform, which will offer people a less expensive and better mobile experience.2.2.3 Life of a Google QueryThe life span of a Google query normally lasts less than half a second, yet involves a number of different steps that must be completed in front results can be delivered to a person seeking information.2.2.4 InfrastructureGoogle provides their products and services using their homegrown software and hardware infrastructure, which provides substantial computing resources at low cost. Google currently use a combination of off-the-shelf and custom software r unning on clusters of commodity computers. Their considerable investment in developing this infrastructure has produced several benefits. This infrastructure simplifies the storage and processing of large amounts of data, eases the deployment and operation of large-scale global products and services, and automates much of the administration of large-scale clusters of computers. Although most of this infrastructure is not directly visible to their users, Google believe it is important for providing a high-quality user experience. It enables significant improvements in the relevance of their search and advertising results by allowing us to apply superior search and retrieval algorithms that are computationally intensive. Google believe the infrastructure also shortens their product development cycle and lets us pursue innovation more cost effectively.2.3.0 QUALITY OF PERSONNELGoogle is among the most successful Internet-based businesses and companies since the booming dotcoms years i n late 1990s and remains to be a leader to date. The success of the Google is rooted on its corking organisational practices and core competencies. Googles formula of success is not only its competent technology but also its aggressive ability to come-up with both innovative and profit-oriented projects. novelty is very critical among the members of its workforce since it operates in global environment.Managing global environment requires managers the ability to manage change through innovation and creativity. The innovative talent of Google combined with integrated process and a supportive culture creates sustainable private-enterprise(a) advantage. Among the considered high-leverage innovators, Google excels in ideation with overall adeptness and competence across all four stages of the innovation value chain. For example, (2007) describes Google as search engine leader that creates new-fangled ideas with intense speed or what they call the 70-20-10 Rule where the staff curi ously engineers are encouraged to use 70 percent of their working time on central business functions, 20 percent on cerebrate business functions, and 10 percent on areas entirely of their own choice. big organisations like Google, in contrast to small ones are faster in adoption of innovations because of greater access to resources and need for strategic planning. Due to the strict competition among Internet companies, the encouragement of innovation and creativity is inherent to Google. vicissitude as a ground for doing business in the 21st speed of light will be the consistent tugging force that the organisation must either strive to adopt or suffer the consequences of being left hobo by competitors. The Googlers (employees) are motivated to contribute their suggestions, ideas, or anything that pertains to potential profit-gaining activities through various means like meetings, intranet, and other forms of communication. In product development, they punctuate on the feasib ility and user-friendliness of relevant ideas. The feasibility is supported by Googles spirit of coming-up with something original and financially viable whereas the idea of user-friendliness works toward potential users. by means of innovations, Google has expanded its services and features. Google today is no longer a search engine company but a web computing applications company. The upscale ability of Google is among its critical success factors that make it a sustainable competitive company in its specified industry.On the aspect of HRM, Google has a searching recruitment procedure that is bounded on the increased importance on valued intelligence and brainpower more than experience. (2003) identified recruiting as part of the overall management function of staffing. Conversely, (2004) emphasised that staffing requires both the process of attracting and selecting potential personnel with exceptional capabilities and competencies to fill-in the company position available at h and. Recruiting potential Googlers are based on academic proficiency and human intelligence. The diversity of skills and qualities of applicants is recognised because Google management believes that it can contribute on its progression. There are also unique advertising techniques in job postings, effective referral system, and campus recruitment. Generally, Google upholds the key HRM functions namely attracting a quality workforce, developing a quality workforce, and maintaining a quality workforce.2.4.0 GOOGLE CAPITAL BASE REVENUE STREAMGoogles computer memory fell decidedly below the psychologically significant mark of $ccc per share at one point. The stock has fallen 60% overall from its high near $720 and sits near its 2004-2005 prices. Despite this, Google remains a global leader in search, internet advertising, and has its finger on the pulse of innovative web services. Googles earnings powerand Googles search share remain intact in the long. Does that mean the shares necess arily imply a great risk-reward tradeoff now?For perspective, lets take a look at Googles performance and its stock performance over a similar period.Overall, Googles stock grew at a 93% CAGR from its IPO in 2004 until 2007. Even including the precipitous drop in 2008, the stock has grown at a 30% CAGR. Since 2003, Google has grown its revenue at a 72.6% CAGR and its net income at a 109.1% CAGR. Roughly normalizing to the 2004-2008 time period, Googles revenue and net income have grown at 62% and 80% CAGR, respectively.Its effloresce that Googles stock grew relatively in line with its net income, in fact, even at its peak Googles stock growth never outpaced its net income growth rate thus implying that wild multiple expansion was not accountable for investor returns over the last five years.Unfortunately, with the changing economic outlook, the market seems to be pre-emptively punishing Google for slowing growth. If the current share price holds, the implication is that the gild will not grow net income from 2008 levels for another three years assuming that a stocks return (30% CAGR) trends towards the long term growth rate of a company.This return scenario seems compelling for a long term investor, but given that we remain dependent on growth for our returns as contradictory to any fundamental valuation. Its hard to ascertain whether or not the stock current price represents a reasonable entry point.Now, let us try to look at the overall strengths and weaknesses of Googles market, technology, personnel and capital base and revenue stream.2.5.0 Googles StrengthsGoogle Already number one search engine has established a brand name, in which its users trust. Its dependable, reliable and fast.Google needs very small end user marketing as the name itself is getting word by mouth publicity.Google has a simple interface and it gives comprehensive results without confound its users.Google has low operation cost as it uses low cost UNIX web servers for indexing millions of web pages across internet.Google has hired PhDs who are continuously working hard in order to enhance search algorithms and make searching faster, efficient and relevant.Google provides an interface to 177 languages to make it comfortable to search for its users in different countries.Google uses state of the art search technology to index pages regularly in order to give most updated results to its users.Google also weights the votes and ranks web pages with its PageRank technology to give its user access to most important pages first.Google is not biased towards advertisers. It understandably separates relevant advertisements and actual results by giving Sponsored Links tag to sponsored results when user searches to get information with some keyword. Moreover, it also ranks sponsored links to keep most relevant sponsored links on the top.Google offers localized search called search by location where users can get results showing vendors, products and services nearby th eir areas.Google also has a range of innovative additional services like Images, Groups, Directory, and News