Historia de Internet 2/2

Key Concepts

• Search Engine Revolution: The evolution of search technology from early directories to sophisticated algorithms.
• PageRank Algorithm: Google's core technology that ranks web pages based on the number and quality of incoming links.
• Keyword Advertising: A business model where advertisers pay to display ads based on specific search terms.
• Portals: Early search engines that expanded into offering a wide range of services like email, news, and chat.
• Silicon Valley Culture: A culture of innovation, risk-taking, and wealth creation centered around technology.
• Venture Capital: Investment in early-stage companies with high growth potential.
• Initial Public Offering (IPO): The process of offering shares of a private company to the public for the first time.
• Google's Expansion: Google's diversification into various products and services beyond search.
• Privacy Concerns: Growing concerns about the amount of personal data collected and stored by Google.

The Early Days of Search

• The Problem: Early internet navigation was difficult due to the lack of effective search tools.
• Yahoo's Directory: Jerry Yang and David Filo created a manually curated directory of websites, "Jerry and David's Guide to the World Wide Web," later renamed Yahoo.
  • Example: They initially used it to track fantasy basketball information.
  • Key Point: This directory was a simple but popular solution to the navigation problem.
• Excite's Software-Based Search: Excite used software to crawl the web and index pages based on keywords.
  • Key Point: This was a more automated approach than Yahoo's directory.
• The Portal Strategy: Yahoo and Excite expanded into "portals," offering various services to attract and retain users.
  • Example: Email, chat rooms, and personalized content.
  • Key Point: This strategy distracted them from focusing on improving search technology.

The Rise of Google

• Larry Page and Sergey Brin: Two Stanford PhD students who developed a new approach to search.
• PageRank Algorithm:
  • Core Idea: A website's importance is determined by the number and quality of links pointing to it.
  • Quote: "In essence, Google interprets a link from page A to page B as a vote by page A for page B."
  • Example: A site about Abraham Lincoln with many links is considered more important than one with few links.
• Early Challenges:
  • University Network Overload: Google's popularity strained Stanford's network.
  • Funding: Initial rejection from venture capitalists who saw it as "just another search engine."
• Key Investment: Andy Bechtolsheim wrote a check for $100,000 to "Google Inc." before the company even had a bank account.
• Sequoia Capital Investment: John Doerr invested in Google, recognizing its potential to organize the world's information.
  • Quote: Page said Google would generate "$10 billion in revenue."

The Birth of Keyword Advertising

• The Problem: Google needed a revenue model to sustain its growth.
• Bill Gross and Overture: Bill Gross, founder of Idealab, pioneered the concept of keyword advertising.
  • Core Idea: Advertisers pay to have their ads displayed when users search for specific keywords.
  • Example: BMW pays to have its ad appear when someone searches for "car."
• Google's AdWords: Google adopted and refined the keyword advertising model, launching AdWords.
  • Key Innovation: Separating paid ads from organic search results.
• Controversy: Google was sued by Overture for allegedly copying its keyword advertising model.
  • Resolution: The lawsuit was settled out of court.

Google's IPO and Expansion

• Initial Public Offering (IPO): Google went public on August 19, 2004.
  • Controversy: Google used an unconventional auction process for its IPO, angering Wall Street.
  • Success: Despite the controversy, the IPO was a success, making Google's founders and early investors very wealthy.
• Expansion Beyond Search: Google diversified into various products and services, including:
  • Examples: Gmail, Google Maps, Google Books, YouTube.
• "Don't Be Evil": Google's unofficial motto, reflecting its desire to be seen as a benevolent company.

Concerns and Challenges

• Privacy Concerns: Growing concerns about the amount of personal data collected and stored by Google.
• Google Phobia: Fear of Google's dominance and its potential misuse of information.
• Competition: Challenges from Microsoft, Yahoo, and other companies.
• Antitrust Concerns: Potential antitrust challenges due to Google's market power.

Synthesis/Conclusion

The story of Google is a tale of technological innovation, entrepreneurial ambition, and the transformative power of the internet. From its humble beginnings as a Stanford research project, Google revolutionized the way people access information and created a new paradigm for online advertising. While Google's success has brought immense benefits, it has also raised important questions about privacy, market power, and the future of the internet. The company's ability to navigate these challenges will determine its long-term success and its impact on society.