What Keeps Google Up At Night
forbes.com
forbes.com
This surprises me. I had the impression that it took them quite a while to come to this conclusion.
Also...w00t, demo days is public now. I participated in that, worked with lacker (also a HackerNews reader). Was a lot of fun.
This is from my memory of the events, not press releases, biographies, or books, so it's probably more correct :)
Come to think of it, has it been? Surely without Google, some other search engine would have filled the gap?
I see some smaller sub-disruptiveness, such as popularizing AJAX with Google Maps, but overall, that statement seems exaggerated?
Our management believed that people used Google because it had better results, but our internal blind tests showed that it wasn't the case. We built internal metrics frameworks and improved our result sets until they were at least as good as google by objective and subjective measurements. We stayed focused on the quality of search results for a long time and disregarded the UI effect as we didn't control it. As a result we lost and ended up being acquired by Yahoo for a tiny fraction of what the company had been worth at its peak.
I've read that studies show that if you put the Google brand on search results, people automatically rate them as having higher quality. So a lot of this is perception. (Quality is related to performance too. Once people notice that a piece of software is faster, they're primed to believe that it's better in every respect.)
Your comment confirms that the reason most people cite for Google's success is quite different from what actually gave them an edge. Of course, once they got it they capitalized on it bigtime.
improved our result sets until they were at least as good as google
You may have fixed the problem, but at that point your reputation was already shot. Ford makes high quality cars today, but it took a long time and a lot of effort to change peoples perception that American cars are not total crap.
PS: When company's selling something think it's a good idea to outsource their core product there is a huge problem.
With AdSense, anyone can make money online if they have good content. Online advertising was around before AdSense, but it was more about distracting visitors with flashing animated ads than contextual text ads.
Twitter should be worried about facebook, after all twitter is a minor feature that can be grafted onto a whole bunch of other sites.
Facebook and twitter fans see facebook and twitter as the be-all-end-all, they don't realize that even though they're big they are not nearly as universal as google.
Search + ads = product, facebook / twitter / myspace / flavour of the day = fads / fashion.
Hard to do that when a rival website has a large proportion of that information inside their closed garden.
I don't think facebook is really something that is to be worried about except as an example of a broader problem.
If facebook were to die tomorrow I doubt there would be any big disturbances in the force (and twitter wouldn't even be noticed, except for some deflation of some egos). If google would die tomorrow morning the internet as we know it would grind to a halt. Search now drives the majority of traffic, plenty of people don't even know how to properly use the url bar any longer and it won't be long before it becomes optional and the search box is your main avenue to the web.
(Although I should say that I believe the sudden disappearance of facebook would be a pretty big deal, just not along the same lines as the disappearance of google would be.)
Facebook probably wishes they could target ads given all their demographic information. They probably want to be able to help users make decisions by leveraging their social graph, but I think in the here-and-now, and probably for the immediate future, that will not be the case.
I think it is silly to constantly worry about what everyone else is doing when it is substantially more fruitful to understand what you yourself should be doing.