Just before the close of business on 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.
Today, Google stands with a much different outlook. The
success of the launch of AdWords propelled Google into a
class all 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.
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.