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before the close of business last Wednesday, Google announced that
it will be launching Gmail, its new free e-mail service set to offer
1000 megabytes of free space to its users. This announcement comes
after a flurry of changes at Google, all of which are geared to
securing their place as the dominant search engine in light of recent
competition offered by Yahoo! and soon MSN. The search engine wars
have been predicted for some time now by search engine insiders,
and the launch of Gmail is Google's attempt to win the war before
it gets fully started. But is Google really ready to take on the
big portals?
It is very unlikely that Google founders Sergey Brin and Larry
Page had any idea exactly how big their original search engine
(then called BackRub) would actually become. Google was an
innocent project through Standford University. It was a project
started in the days of optimism about a free Internet not
supported by ads or corporate revenues, but rather the free
exchange of ideas. As a result, they focused solely on product.
There were no worries about creating a flashy interface, hiring
a sharp marketing team, or launching an IPO. They were worried
about good search results. The result is that Google is now
synonymous with searching the Internet.
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Today, Google stands with a much different outlook. The success
of the launch of AdWords propelled Google into a class of their
own. Almost overnight, Google entered the PPC industry and dethroned
Overture as the untouchable kings of PPC. Although other search
engines such as Lycos, FindWhat, Kanoodle, and Sprinks had been
competing with Overture, none of these engines were able to bring
the reach and brand power of Google.
The success of AdWords was a notice to every other Internet
giant. Companies such as Yahoo! and AOL - who were providing
Google's results to their users - took notice to the fact that
Google had an incredible influence on the Internet, and if they
desired, they could leverage that influence into a variety of
new markets. Worse yet, Yahoo! and AOL helped Google gain such
influence by providing Google results to their users. These
giants became nervous, and with good reason. Google started to
show signs that they were expanding into new markets.
Dictionaries, glossaries, news services, Froogle, Catalog
search, maps, blogging, and other services were all emerging
from the Google labs and news rooms. If Google was able to
instantaneously compete and lead in the highly competitive PPC
market, what would happen if they moved in on the territory of
Yahoo!, AOL, or MSN? These Internet giants helped make Google
powerful, possibly more powerful than they were themselves.
The battle for web searches had begun. Yahoo! has taken the
most notable steps by replacing their results provided by Google
with their newly acquired Inktomi division based results. To
fight Google on the advertising revenue level, Yahoo swooped up
Overture, still all-star in the paid search market. Overture,
now playing catch-up in an industry which they practically
founded, launched their own site content match system which
rivals Google AdWords.
MSN has vowed to refine their search algorithms to become more
relevant. Most of the work being done by MSN has been fairly
quiet, but rest assured, there will be a lot of talk about MSN
search when they are ready to release their new product to the
Internet. And, with every new PC you buy, don't be surprised if
it comes with a host of web searching tools built in.
There have even been rumors over at AOL that they are going to
be abandoning their Google based results. The fact is, AOL is
scared of Google. As it stands right now, Froogle already steps
on their shopping market, and Google News is taking away from
AOL's news delivery service.
By abandoning Google provided results, these Internet giants are
attempting to limit Google's reach. The fact is simple: users
still use Yahoo!, MSN, and AOL. They use these services because
they offer a host of unique information, updated news, financial
reports, maps, phone directories, etc. Most importantly, users
visit MSN, Yahoo, and AOL for their free e-mail. While they
have these users attention, Yahoo! and MSN will now try to sell
these users on their new and improved search results not
provided by Google in order to steal a bit of that search engine
market.
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Just as Yahoo!, AOL, and MSN realized how powerful Google was in
the search engine market (and subsequently the danger that posed
to them), Google is realizing the real threat that these portals
present. If these portals are able to offer suitable search
results, users will have less reason to utilize Google's search.
Google has also recognized the main advantage these portals
have: free e-mail. Free e-mail is what makes Yahoo! and MSN
such popular destinations. People who have e-mail accounts at
these locations find themselves visiting these sites multiple
times every day just to check their e-mail. While they are
there, they have the opportunity to be grabbed by a headline or
service offered through these portals. The free e-mail is what
brings the users back time and again.
Gmail is a direct attempt by Google to destroy any competition
before it arises. With 10 times the amount of storage and what
appears to be a superior interface for viewing and organizing
mail messages, Gmail is not simply a nice thing to offer to web
surfers. Gmail is an attempt to put an arrow through the heart
of Yahoo! Mail and Hotmail. The services will not be comparable
in quality, and that is the way Google wants it. The goal of
Gmail is to make Hotmail and Yahoo! Mail look like laughable
solutions to web based e-mail.
If Gmail is successful in converting Yahoo! Mail users and
Hotmail users, the search engine wars will most likely be much
ado about nothing. The battle and war will be won, and the
victor will be Google. But don't expect MSN, AOL, or Yahoo! to
simply watch Gmail launch without developing a plan to strike
back hard. Yahoo! alone has invested incredible amounts of
money to acquire Inktomi and Overture just so they can compete
head to head with Google. It would be uncharacteristic of them
to simply fold. And do not forget about the power MSN has with
their search. Remember that Microsoft controls what search
engine is used by default on most every computer around the
world. That is a competitive advantage that Google will have a
very hard time overcoming.
Gmail will not be the last new service offered by Google. It
certainly will not go unanswered by Yahoo! or another portal.
It will, however, mark a fundamental point in this search engine
war that appears to now be in full swing.