Google: Google Inc. Is An American Multinational Public Corporation Invested in Internet
Google: Google Inc. Is An American Multinational Public Corporation Invested in Internet
Google: Google Inc. Is An American Multinational Public Corporation Invested in Internet
Google runs over one million servers in data centers around the world, and processes over one
billion search requests and about twenty-four petabytes of user-generated data every day.
Google's rapid growth since its incorporation has triggered a chain of products, acquisitions,
and partnerships beyond the company's core web search engine. The company offers
online productivity software, such as its Gmail email software, and social networking tools,
including Orkut and, more recently, Google Buzz. Google's products extend to the desktop as
well, with applications such as the web browser Google Chrome, the Picasa photo organization
and editing software, and the Google Talk instant messaging application. Notably, Google leads
the development of the Android mobile phone operating system, used on a number of phones
such as the Nexus One and Motorola Droid. Alexa lists the main U.S.-focused google.com site as
the Internet's most visited website, and numerous international Google sites (google.co.in,
google.co.uk etc.) are in the top hundred, as are several other Google-owned sites such
as YouTube, Blogger, and Orkut. Google is also BrandZ's most powerful brand in the world. The
dominant market position of Google's services has led to criticism of the company over issues
including privacy, copyright, and censorship.
HISTORY
Google began in January 1996 as a research project by Larry Page and Sergey Brin when
they were both PhD students at University in California.
While conventional search engines ranked results by counting how many times the search
terms appeared on the page, the two theorized about a better system that analyzed the
relationships between websites. They called this new technology PageRank, where a website's
relevance was determined by the number of pages, and the importance of those pages, that linked
back to the original site.
A small search engine called "RankDex" from IDD Information Services designed
by Robin Li was, since 1996, already exploring a similar strategy for site-scoring and page
ranking. The technology in RankDex would be patented and used later when Li founded Baidu in
China.
Page and Brin originally nicknamed their new search engine "BackRub", because the
system checked backlinks to estimate the importance of a site.
Eventually, they changed the name to Google, originating from a misspelling of the word
"googol", the number one followed by one hundred zeros, which was picked to signify that the
search engine wants to provide large quantities of information for people. Originally, Google ran
under the University website, with the domain google.stanford.edu.
The domain name for Google was registered on September 15, 1997, and the company
was incorporated on September 4, 1998. It was based in a friend's (Susan Wojcicki ) garage
in Menlo Park, California. Craig Silverstein, a fellow Ph.D. student at Stanford, was hired as the
first employee.
Financing and initial public offering
The first funding for Google was an August 1998 contribution of US$100,000 from Andy
Bechtolsheim, co-founder of Sun Microsystems, given before Google was even
incorporated. Early in 1999, while still graduate students, Brin and Page decided that the search
engine they had developed was taking up too much of their time from academic pursuits. They
went to Excite CEO George Bell and offered to sell it to him for $1 million. He rejected the
offer, and later criticized Vinod Khosla, one of Excite's venture capitalists, after he had
negotiated Brin and Page down to $750,000. On June 7, 1999, a $25 million round of funding
was announced, with major investors including the venture capital firms Kleiner Perkins
Caufield & Byers and Sequoia Capital.
Google's initial public offering (IPO) took place five years later on August 19, 2004. The
company offered 19,605,052 shares at a price of $85 per share. Shares were sold in a unique
online auction format using a system built by Morgan Stanley and Credit Suisse, underwriters for
the deal. The sale of $1.67 billion gave Google a market capitalization of more than $23 billion.
The vast majority of the 271 million shares remained under the control of Google, and many
Google employees became instant paper millionaires. Yahoo!, a competitor of Google, also
benefited because it owned 8.4 million shares of Google before the IPO took place.
The stock's performance after the IPO went well, with shares hitting $700 for the first
time on October 31, 2007, primarily because of strong sales and earnings in the online
advertising market. The surge in stock price was fueled mainly by individual investors, as
opposed to large institutional investors and mutual funds. The company is now listed on
the NASDAQ stock exchange under the ticker symbol GOOG and under the Frankfurt Stock
Exchange under the ticker symbol GGQ1.
Growth
In March 1999, the company moved its offices to Palo Alto, California, home to several
other noted Silicon Valley technology startups. The next year, against Page and Brin's initial
opposition toward an advertising-funded search engine,Google began
selling advertisements associated with search keywords. In order to maintain an uncluttered page
design and increase speed, advertisements were solely text-based. Keywords were sold based on
a combination of price bids and click-throughs, with bidding starting at five cents per click.
[1]
This model of selling keyword advertising was first pioneered by Goto.com, an Idealab spin-
off created by Bill Gross. When the company changed names to Overture Services, it sued
Google over alleged infringements of the company's pay-per-click and bidding patents. Overture
Services would later be bought by Yahoo! and renamed Yahoo! Search Marketing. The case was
then settled out of court, with Google agreeing to issue shares of common stock to Yahoo! in
exchange for a perpetual license.
During this time, Google was granted a patent describing its PageRank mechanism. The
patent was officially assigned to Stanford University and lists Lawrence Page as the inventor. In
2003, after outgrowing two other locations, the company leased its current office complex
from Silicon Graphics at 1600 Amphitheatre Parkway in Mountain View, California. The
complex has since come to be known as the Googleplex, a play on the word googolplex, the
number one followed by a googol zeroes. Three years later, Google would buy the property from
SGI for $319 million. By that time, the name "Google" had found its way into everyday
language, causing the verb "google" to be added to the Merriam Webster Collegiate
Dictionary and the Oxford English Dictionary, denoted as "to use the Google search engine to
obtain information on the Internet."
Acquisitions and partnerships
Since 2001, Google has acquired many companies, mainly focusing on small venture
capital companies. In 2004, Google acquired Keyhole, Inc. The start-up company developed a
product called Earth Viewer that gave a 3-D view of the Earth. Google renamed the service
to Google Earth in 2005. Two years later, Google bought the online video site YouTube for
$1.65 billion in stock. On April 13, 2007, Google reached an agreement to
acquire DoubleClick for $3.1 billion, giving Google valuable relationships that DoubleClick had
with Web publishers and advertising agencies.Later that same year, Google
purchased GrandCentral for $50 million. The site would later be changed over to Google Voice.
On August 5, 2009, Google bought out its first public company, purchasing video software
maker On2 Technologies for $106.5 million. Google also acquired Aardvark, a social network
search engine, for $50 million. Google commented in their internal blog, "we're looking forward
to collaborating to see where we can take it".And, in April 2010, Google announced it had
acquired a hardware startup, Agnilux.
In addition to the numerous companies Google has purchased, the company has partnered
with other organizations for everything from research to advertising. In 2005, Google partnered
with NASA Ames Research Center to build 1,000,000 square feet (93,000 m2) of offices. The
offices would be used for research projects involving large-scale data management,
nanotechnology, distributed computing, and the entrepreneurial space industry. Later that year,
Google entered into a partnership with Sun Microsystems in October 2005 to help share and
distribute each other's technologies. The company also partnered with AOL of Time Warner, to
enhance each other's video search services. Google's 2005 partnerships also included financing
the new .mobi top-level domain for mobile devices, along with other companies
including Microsoft, Nokia, and Ericsson. Google would later launch "Adsense for Mobile",
taking advantage of the emerging mobile advertising market. Increasing their advertising reach
even further, Google and Fox Interactive Media of News Corp. entered into a $900 million
agreement to provide search and advertising on popular social networking site MySpace.
One of the disadvantages and criticisms of this program is Google's inability to combat click
fraud, when a person or automated script "clicks" on advertisements without being interested in
the product, which causes that advertiser to pay money to Google unduly. Industry reports in
2006 claim that approximately 14 to 20 percent of clicks were in fact fraudulent or invalid.
Furthermore, there has been controversy over Google's "search within a search", where a
secondary search box enables the user to find what they are looking for within a particular
website. It was soon reported that when performing a search within a search for a specific
company, advertisements from competing and rival companies often showed up along with those
results, drawing users away from the site they were originally searching. Another complaint
against Google's advertising is their censorship of advertisers, though many cases concern
compliance with the Digital Millennium Copyright Act. For example, in February 2003, Google
stopped showing the advertisements of Oceana, a non-profit organization protesting a major
cruise ship's sewage treatment practices. Google cited its editorial policy at the time, stating
"Google does not accept advertising if the ad or site advocates against other individuals, groups,
or organizations." The policy was later changed. In June 2008, Google reached an advertising
agreement with Yahoo!, which would have allowed Yahoo! to feature Google advertisements on
their web pages. The alliance between the two companies was never completely realized due
to antitrust concerns by the U.S. Department of Justice. As a result, Google pulled out of the deal
in November 2008.
In an attempt to advertise its own products, Google launched a website called Demo Slam,
developed to demonstrate technology demos of Google products. Each week, two teams compete
at putting Google's technology into new contexts. Search Engine Journal said Demo Slam is "a
place where creative and tech-savvy people can create videos to help the rest of the world
understand all the newest and greatest technology out there."
2. Search engine
Google Search, a web search engine, is the company's most popular service. According
to market research published by comScore in November 2009, Google is the dominant search
engine in the United States market, with a market share of 65.6%.Google indexes billions of web
pages, so that users can search for the information they desire, through the use
of keywords and operators. Despite its popularity, it has received criticism from a number of
organizations. In 2003, The New York Times complained about Google's indexing, claiming that
Google's caching of content on their site infringed on their copyright for the content. In this case,
the United States District Court of Nevada ruled in favor of Google in Field v.
Google and Parker v. Google. Furthermore, the publication 2600: The Hacker Quarterly has
compiled a list of words that the web giant's new instant search feature will not search. Google
Watch has also criticized Google's Page Rank algorithms, saying that they discriminate against
new websites and favor established sites, and has made allegations about connections between
Google and the NSA and the CIA. Despite criticism, the basic search engine has spread to
specific services as well, including an image search engine, the Google News search site, Google
Maps, and more. In early 2006, the company launched Google, which allowed users to upload,
search, and watch videos from the Internet. In 2009, however, uploads to Google Video were
discontinued so that Google could focus more on the search aspect of the service. The company
even developed Google Desktop, a desktop search application used to search for files local to
one's computer. Google's most recent development in search is their partnership with the United
States Patent and Trademark Office to create Google Patents, which enables free access to
information about patents and trademarks.
One of the more controversial search services Google hosts is Google Books. The company
began scanning books and uploading limited previews, and full books where allowed, into their
new book search engine. The Authors Guild, a group that represents 8,000 U.S. authors, filed a
class action suit in a Manhattan federal court against Google in 2005 over this new service.
Google replied that it is in compliance with all existing and historical applications of copyright
laws regarding books. Google eventually reached a revised settlement in 2009 to limit its scans
to books from the U.S., the U.K., Australia and Canada. Furthermore, the Paris Civil Court ruled
against Google in late 2009, asking them to remove the works of La Martinière (Éditions du
Seuil) from their database. In competition with Amazon.com, Google plans to sell digital
versions of new books. Similarly, in response to newcomer Bing, on July 21, 2010, Google
updated their image search to display a streaming sequence of thumbnails that enlarge when
pointed at. Though web searches still appear in a batch per page format, on July 23, 2010,
dictionary definitions for certain English words began appearing above the linked results for web
searches.
3. Productivity tools
In addition to its standard web search services, Google has released over the years a number
of online productivity tools. Gmail, a free webmail service provided by Google, was launched as
an invitation-only beta program on April 1, 2004, and became available to the general public on
February 7, 2007. The service was upgraded from beta status on July 7, 2009, at which time it
had 146 million users monthly. The service would be the first online email service with
one gigabyte of storage, and the first to keep emails from the same conversation together in one
thread, similar to an Internet forum. The service currently offers over 7400 MB of free storage
with additional storage ranging from 20 GB to 16 TB available for US$0.25 per 1 GB per
year. Furthermore, software developers know Gmail for its pioneering use of AJAX, a
programming technique that allows web pages to be interactive without refreshing the
browser. One criticism of Gmail has been the potential for data disclosure, a risk associated with
many online web applications. Steve Ballmer(Microsoft's CEO), Liz Figueroa, Mark Rasch, and
the editors of Google Watch believe the processing of email message content goes beyond proper
use, but Google claims that mail sent to or from Gmail is never read by a human being beyond
the account holder, and is only used to improve relevance of advertisements.
Google Docs, another part of Google's productivity suite, allows users to create, edit, and
collaborate on documents in an online environment, not dissimilar to Microsoft Word. The
service was originally called Writely, but was obtained by Google on March 9, 2006, where it
was released as an invitation-only preview. On June 6 after the acquisition, Google created an
experimental spreadsheet editing program, which would be combined with Google Docs on
October 10. A program to edit presentations would complete the set on September 17,
2007, before all three services were taken out of beta along with Gmail, Google Calendar and all
products from the Google Apps Suite on July 7, 2009.
4. Enterprise products
Google entered the enterprise market in February 2002 with the launch of its Google Search
Appliance, targeted toward providing search technology for larger organizations. Google
launched the Mini three years later, which was targeted at smaller organizations. Late in 2006,
Google began to sell Custom Search Business Edition, providing customers with an advertising-
free window into Google.com's index. The service was renamed Google Site Search in 2008.
Another one of Google's enterprise products is Google Apps Premier Edition. The service,
and its accompanying Google Apps Education Edition and Standard Edition, allow companies,
schools, and other organizations to bring Google's online applications, such as Gmail and Google
Documents, into their own domain. The Premier Edition specifically includes extras over the
Standard Edition such as more disk space, API access, and premium support, and it costs $50 per
user per year. A large implementation of Google Apps with 38,000 users is at Lakehead
University in Thunder Bay, Ontario, Canada. In the same year Google Apps was launched,
Google acquired Postini and proceeded to integrate the company's security technologies into
Google Apps under the name Google Postini Services.
5. Other products
Google Translate is a server-side machine translation service, which can translate between 35
different languages. Browser extensions allow for easy access to Google Translate from the
browser. The software uses corpus linguistics techniques, where the program "learns" from
professionally translated documents, specifically United Nations and European
Parliament proceedings. Furthermore, a "suggest a better translation" feature accompanies the
translated text, allowing users to indicate where the current translation is incorrect or otherwise
inferior to another translation.
Google launched its Google News service in 2002. The site proclaimed that the company had
created a "highly unusual" site that "offers a news service compiled solely by computer
algorithms without human intervention. Google employs no editors, managing editors, or
executive editors." The site hosted less licensed news content than Yahoo! News, and instead
presented topically selected links to news and opinion pieces along with reproductions of their
headlines, story leads, and photographs. The photographs are typically reduced to thumbnail size
and placed next to headlines from other news sources on the same topic in order to minimize
copyright infringement claims. Nevertheless, Agence France Presse sued Google for copyright
infringement in federal court in the District of Columbia, a case which Google settled for an
undisclosed amount in a pact that included a license of the full text of AFP articles for use on
Google News.
In 2006, Google made a bid to offer free wireless broadband access throughout the city
of San Francisco in conjunction with Internet service provider EarthLink. Large
telecommunications companies such as Comcast and Verizon opposed such efforts, claiming it
was "unfair competition" and that cities would be violating their commitments to offer local
monopolies to these companies. In his testimony before Congress on network neutrality in 2006,
Google's Chief Internet Evangelist Vint Cerf blamed such tactics on the fact that nearly half of
all consumers lack meaningful choice in broadband providers. Google currently offers free wi-fi
access in its hometown of Mountain View, California.
One year later, reports surfaced that Google was planning the release of its own mobile
phone, possibly a competitor to Apple's iPhone. The project, called Android, turned out not to be
a phone but an operating system for mobile devices, which Google acquired and then released as
an open source project under the Apache 2.0 license. Google provides a software development
kit for developers so applications can be created to be run on Android-based phone. In
September 2008, T-Mobile released the G1, the first Android-based phone. More than a year
later on January 5, 2010, Google released an Android phone under its own company name called
the Nexus One.
Other projects Google has worked on include a new collaborative communication service, a
web browser, and even a mobile operating system. The first of these was first announced on May
27, 2009. Google Wave was described as a product that helps users communicate and collaborate
on the web. The service is Google's "email redesigned", with realtime editing, the ability to
embed audio, video, and other media, and extensions that further enhance the communication
experience. Google Wave was previously in a developer's preview, where interested users had to
be invited to test the service, but was released to the general public on May 19, 2010, at Google's
I/O keynote. On September 1, 2008, Google pre-announced the upcoming availability of Google
Chrome, an open source web browser, which was then released on September 2, 2008. The next
year, on 7 July 2009, Google announced Google Chrome OS, an open source Linux-
based operating system that includes only a web browser and is designed to log users into their
Google account
Google in India
Google India Private Limited operates as an online search engine. The company provides
access to online information. It also serves as a platform for users to use as vehicles for social
networking, video engagement, mailing and blogging. The company was founded in 2004 and is
based in Bengaluru, India. Google India Private Limited operates as a subsidiary of Google Inc.
Google India Private Limited is seeking acquisitions. “Across the world, we are looking to
expand, both organically and inorganically, so we are acquiring companies, probably one
company a week kind of thing. Typically, what drives these acquisitions is the strength of the
technology, team and the innovation that they bring with them. To some extent, I think India is
definitely there. We have talked to a lot of companies in India and will continue to do so,” Vinay
Goel, head of products at Google India, said.
Google India Private Limited Announces the Launch of a New Call Center in Hyderabad
Google India Private Limited announced the launch of a new call center in Hyderabad that will
provide regional language support to small medium businesses in India for its AdWords
platform. The new center will offer support in Telugu, Tamil, Kannada and Malayalam and will
manage both inbound and out bound calls to help small medium entrepreneurs to learn managing
advertising campaigns online and grow their businesses by using Google's advertising platform.
With this new additional facility, Google India will now provide support in 6 languages which
also includes Hindi and English.
Google India Private Limited Launches Music Search
Google India Private Limited has launched Music search (google.co.in/music) enabling users to
search for Bollywood music and stream them. Above all, this streaming will be fully legal as
Google Music Search (India) Labs offers music from partners who have legal permission to
stream online. To throw certain context, Minglebox shut down its music streaming service and
Guruji has faced lawsuit owing to their search + stream service.