google speaks

—continuedfromfro

ntflap—

$19.95USA/$23.95CAN

Praisefor

InadditiontoexaminingGoogle’sbreakthrough

businessstrategiesandnew

businessmodels—

whichhavetransformedonlineadvertising

Inmanyways,Googleistheprototypeofa

Google

andchangedthewaywelookatcorporate

responsibilityandemployeerelations—Lowe

explainswhyGooglemaybeaharbingerof

SPEAKS

5]]UZSsuccessfultwenty-first-centurycompany.Ituses

technologyinnewwaysto

makeinformation

universallyaccessible;promotesacorporate

wherecorporateAmericaisheaded.Shealso

A>3/9A

addressescontroversiessurroundingGoogle,such

“It’snothardtoseethat

Googleisaphenomenalcompany....At

culturethatencouragescreativityamongits

employees;andtakesitsroleasacorporatecitizen

ascopyrightinfringement,antitrustconcerns,and

SecretsoftheWorld’sGreatestBillionaireEntrepreneurs,

personalprivacyandposesthequestionalmost

Geico,wepaytheseguysawholelotofmoneyforthisandthatkey

veryseriously,investingin

greeninitiativesand

SergeyBrinandLarryPage

everysuccessfulcompanymustface:asGoogle

word.”

grows,canitholdontoitsentrepreneurialspiritas

—WarrenBuffett

wellasitsinformalmotto,“Don’tdoevil”?

developingthelargestcorporatefoundationin

theUnitedStates.

FollowinginthefootstepsofWarrenBuffett

“Googlerocks.ItraisedmyperceivedIQbyabout20points.”

SpeaksandJackWelchSpeaks—whichcontaina

conversationalstylethatsuccessfullycapturesthe

Whatstartedoutasauniversityresearchproject

—WesBoyd

essenceofthesebusinessleaders—GoogleSpeaks

conductedbySergeyBrinandLarryPagehas

PresidentofMoveon.Org

revealstheamazingstorybehindoneofthemost

endeduprevolutionizingthe

worldwelivein.

GoogleSpeaksputstheseincredibleentrepreneurs

“Googleismyrapidresponseresearchassistant.It’stheSwissArmy

importantnewcompaniesofourtimebyexploring

thepeopleandphilosophiesthathavemadeita

inperspectiveandshowsyouhowtheirdriveand

knifeofinformationretrieval.”

globalphenomenoninlessthanfifteenyears.

determinationhaveallowedthemtocreateoneof

—LloydGrove

today’smostpowerfulcompanies.

ENTREPRENEURS

columnist,Portfolio.com

TSoftheWORLD’SGREA

Writtenbybestsellingauthor

JanetLowe,thisbook

offersanengaginglookathowGoogle’sfounders,

JANETLOWEistheauthorofthebestselling

“Who’safraidofGoogle?Everyone.”

SergeyBrinandLarryPage,transformedtheir

WarrenBuffettSpeaks,JackWelchSpeaks,and

,SERGEY

—Wiredmagazine

visionofabetterInternetsearchengineintoa

BillGatesSpeaks,allfromWiley.Herarticleshave

BRINandLARR

businesscolossuswithabout$16billioninannual

appearedinsuchpublicationsasNewsweek,the

“Writersofthepasthadabsinthe,whiskeyorheroin.IhaveGoogle.”

revenue.LowediscussesthevaluesthatdriveBrin

ChristianScienceMonitor,

theLosAngelesTimes,

TESTBI

—MichaelChabon

andPage—

—forexample,howtheybothlivefairly

andtheSanFranciscoChronicle.

authorofTheAmazingAdventuresofKavalierandClay

LLIONAIRE

modestlives,despiteeachhavinganetworth

inexcessof$15.9billion—

—anddetailshowthey

JacketIllustration:©MichaelWitte

havecreatedaculturethatfostersfunwhile,at

thesametime,keepingGoogleattheforefrontof

technologythroughrelentlessR&Dinvestments

andimaginativepartnershipswithorganizations

suchasNASA.

8/<3B:=E3

—continuedonbackflap—

ffirs.inddii

3/26/092:58:28PM

Google

SPEAKS

ffirs.inddi

3/26/092:58:28PM

ffirs.inddii

3/26/092:58:28PM

Google

SPEAKS

SecretsoftheWorld’sGreatest

BillionaireEntrepreneurs,

JANETLOWE

JohnWiley&Sons,Inc.

ffirs.inddiii

3/26/092:58:28PM

PublishedbyJohnWiley&Sons,Inc.,Hoboken,NewJersey.

PublishedsimultaneouslyinCanada.

Nopartofthispublicationmaybereproduced,storedin

aretrievalsystem,ortransmittedinanyformorbyanymeans,electronic,mechanical,photocopying,recording,scanning,orotherwise,exceptaspermittedunderSection107or108ofthe1976UnitedStatesCopyrightAct,withouteitherthepriorwrittenpermissionofthePublisher,orauthorizationthroughpaymentoftheappropriateper-copyfeetotheCopyright

ClearanceCenter,Inc.,222RosewoodDrive,Danvers,MA01923,(978)750-8400,fax(978)646-8600,oronthewebatwww.copyright.com.RequeststothePublisherforpermissionshouldbeaddressedtothePermissions

Department,JohnWiley&Sons,Inc.,111RiverStreet,Hoboken,NJ07030,(201)748-6011,fax(201)748-6008,oronlineat

http://www.wiley.com/go/permissions.

LimitofLiability/DisclaimerofWarranty:Whilethepublisherandauthorhaveusedtheirbesteffortsinpreparingthisbook,theymakenorepresentationsorwarrantieswithrespecttotheaccuracyorcompletenessofthecontentsofthisbookandspecificallydisclaimanyimpliedwarrantiesofmerchantabilityorfitness

foraparticularpurpose.Nowarrantymaybecreatedorextendedbysalesrepresentativesorwrittensalesmaterials.Theadviceandstrategiescontainedhereinmaynotbesuitableforyoursituation.Youshouldconsultwithaprofessionalwhereappropriate.Neitherthepublishernorauthorshallbeliableforanylossofprofitoranyothercommercial

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Forgeneralinformationonourotherproductsandservicesorfortechnicalsupport,pleasecontactourCustomerCareDepartmentwithintheUnited

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Wileyalsopublishesitsbooksinavarietyofelectronicformats.Somecontentthatappearsinprintmaynotbeavailableinelectronicbooks.FormoreinformationaboutWileyproducts,visitourwebsiteatwww.wiley.com.

LibraryofCongress

Cataloging-in-PublicationData:

Lowe,Janet.

Googlespeaks:secretsoftheworld’sgreatestbillionaireentrepreneurs,SergeyBrinandLarryPage/JanetLowe.

Includes

bibliographical

references.

978-0-470-39854-8

(cloth)

Sergey,

1973–2.

Larry,

1973–3.

Computer

programmers—UnitedStates—Biography.4.Businesspeople—

UnitedStates—Biography.5.Internetprogramming—UnitedStates.

6.Google(Firm)7.Google.8.Websearchengines.I.Title.

QA76.2.A2L692009

005.1092—dc22

2009004121

PrintedintheUnitedStatesofAmerica

10987654321

ffirs.inddiv

3/26/092:58:44PM

DedicatedtoStephenPlaxe,CarolynMuller,

AudreySniegowski,DaleandKathyLowe,

JadeEaston,andallmyotherAngels.

Thankyou.

ffirs.inddv

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ffirs.inddvi

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Contents

Acknowledgments

INTRODUCTION1

THEGOOGLEGUYS

SergeyBrin

RussianRoots

AmericanPassage

EducatingSergey

TheRoadtoStanford

BoyGeniustoAdultGenius

WeddingonaCaribbeanSandBar

23andMe18

FlyingHigh

LarryPage

CradledinaComputerCulture

NikolaTesla,Page’sHero

Tesla’sStory

TheTeslaCar

ftoc.inddvii

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viiiCONTENTS

MotivatedbyMontessori

TheLeadershipProgram

TheSolarRacer

GoWest,Larry

Lego-centricity29

MensaBoy

LarryGetsMarried

TheX-Prize

NoMoreLaundry

ThePowerofPartnership

ForgingtheStanfordConnection

ACreativeEnvironment

APoignantHistory

AnAcademicoran

Entrepreneur?

AGrimGoodbye

NetworkingatItsBest

BurningMan

ADULTSUPERVISION

TheCollectiveWisdomofSiliconValley

He’sBeentheRock;They’veBeentheRockets

AManofInfluence

ClimbingaDifferentKindofMountain

INTHEBEGINNING

TheUltimateSearchEngine

NotInventing,butImprovingUpon

LookAroundYouforInspiration

HowSearchWorks

PlatformPower

OpenPlatform

ftoc.inddviii

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Contentsix

GOOGLEBYANYOTHERNAME

ABlessedBlunder

FromNountoVerb

PlayingwiththeName

TheGoogleLogo

TheGoogleDoodle

GoogleZeitgeist

ACOMPANYISBORN

Yahoo!DrewtheMap

TheRequisiteGarage

TheVentureCapitalists

TheElusiveBusinessPlan

InvestinginWildIdeas

GoodIdeasPuttoGoodUse

DealingwithDarkMatter

AversiontoAdvertising

AdvertisingthatDeliversResults

TwoWaystoAdvertise:

AdWordsandAdSense

ExtendingtheGoogleReach

TheScienceofAdvertising

GoogleDidn’tAdvertiseItself—atFirst

BirthoftheGoogleEconomy

GOINGPUBLIC

“We’reDifferent”

TheDutchAuction

BuffettonGoogle

BerkshireHathaway’sShare

StructureversusGoogle’s

ftoc.inddix

3/25/093:02:00PM

xCONTENTS

ThePlayboyInterview

TenYearsLater

THEVISION

MakeItUseful

TheManyWaystoGoogle

MakeItBig

WeServetheWorld

MakeItFun

GoogleUsersHearkentotheCall

Don’tDoEvil

HowGoogleDefinesEvil

TheMottoLosesSomeShine

CanFreeSpeechGoTooFar?

MakeItFree

GOOGLECULTURE

NewManagementStyle

TenThingsGoogleHasFoundtoBeTrue

RidingtheLongTail

20PercentProjects

PerpetualBeta

FabledWorkplace

AnAlternativePointofView

Googleplex164

GoogleinIreland

TopTenReasonstoWorkatGoogle

TheBattleforBrainpower

GuardingtheSecrets

ftoc.inddx

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Contentsxi

GOOGLEGROWSUP

ConflictsandControversy

ClickFraud

Avoiding—orNotAvoiding

—Pornography

PrivacyIssue

AdvertisingProducts

Gmail192

StreetView

CanTheySnoop—andWillTheyTell?

Hello,HumanRights

TheGreatChineseFirewall

PrinciplesofFreedom

CopyrightInfringement

TheAuthors’Revolt

GrandAmbitions

TheSnippetDefense

WhosePropertyIsIt,Anyway?

AllAboutAdvertising

TheGame-ChangingSettlement

LawsuitsEverywhere

GoogleGetsanAirplane

GoogleGetsaSatellite

GOODCITIZENGOOGLE

Google.org—thePhilanthropicPart

GoogleandtheEnvironment

RenewableEnergyLessthanCoal

GeothermalPower

EnergyfromtheSea

Energy-EfficientGoogleplex

ftoc.inddxi

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xiiCONTENTS

GOOGLE’SFUTURE

ArtificialIntelligence

OnwardtoWeb3.0

CloudComputing

YouTube248

TheGooglePhone

WhiteSpaces

THEDOMINANTPOWERINTHEINDUSTRY?

Google,Microsoft,andthe

InternetCivilWar

TheBattleofYahoo!

GatesonGoogle

CONCLUSION273

LessonsfromLarryand

Sergey

TheTraitsofThoseWhoChangetheWorld

Timeline

Glossary

Permissions

ftoc.inddxii

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Acknowledgments

Thankyoutothefollowingpeoplefortheenormous

credittheydeserveforthisbook:JoanO

’Neil,Kevin

Commins,EmilieHerman,andMaryDanielloatJohn

&Sons,thestaffatCapeCodCompositors,my

literaryrepresentativeAliceMartell,copyandcontent

editorLynneCarrier,andadvisorsandhelpersAlan

Bradford,JackBrandais,WarrenBuffett,BenandCarol

DeBolt,TrudyJenzer,John

McDermott,andProfessor

JoelWest.

flast.inddxiii

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Google

SPEAKS

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Introduction

Atthetenthbirthdayof

GoogleInc.,foundersLarryPage

andSergeyBrinstoodonthegroundsofVandenberg

AirForceBaseincentralCalifornia.Theywatchedin

wonderasastate-of-the-artDelta2rocketblastedinto

theatmosphere,carryingaGeoEye-1satelliteinto

orbit.

Thesatellite,adornedwiththeGooglelogo,wouldsend

backrazor-sharpphotostobeusedinthecompany’s

popularmappingservice.1Whatagloriouswaytocele-

bratethefirstdecadeofacompanythatitselftookoff

likearocketfromitsverybeginning.

ChrisWinfield,whoheadsthesearch-engineadfirm

10e20,notedthatinaveryshorttime,Googlehasbecome

arage,theequivalentoftheBeatlesduringthe1960s.“It’s

prettyamazing,it’salmostliketheyareincontrolofthe

world.”2

Thestoryofthesearch-enginecompanyGoogleand

itstwoyoungfoundersisloadedwithsuperlatives,

cintro.indd1

3/25/093:00:32PM

GOOGLESPEAKS

secrets,andsurprises.Onethingiscertain:TheGoogle

guys,LarryandSergey,bothnow36,havebecomethe

undisputed“lordsofallinformation.”3

In2006,TimemagazinecalledGooglethe“smartest

companyoftheyear

”andoneofthecentury

’smost

game-changingenterprises.Googlewascrownedthe

world’slargestsearchengineandoneofthebest-

globalbrands.Praiselikethatcouldwellgotoacom-

panyleader’shead.

TheGooglefoundershavebeendescribedinmany

ways,includingtheThomasEdisonsoftheInternet.Brin

andPagearethetwinPrinces

ofHighTechnologywho

pulledtheproverbialswordfromthestone.Theywere

groomedforgreatnessinthecomputerfieldfrom

infancy;theytraveledtoaholyland(StanfordUniver-

sityandSiliconValley)toprovetheirmettleinbattle.

Theyslewawholedenofdragonsandemergedfrom

thequestwithflagsofvictoryflying.Theirstoryisa

classichero’sjourney.

LarryandSergeywereaccustomedtotheroleofhigh

achievers.Botharesonsof

scientists,andbothgrewup

intechnology

-orientedhouseholds.Bothwerebright

andaccomplishedinschool.AtStanfordandinSilicon

Valley,theyweresurroundedbyacourtwhoknewthe

landscapeofthatcharmed

kingdom.Theirprofessors

wereamongthebestinthefieldofcomputerscience.

Hisbrotherhadalreadysetupacompanybythetime

cintro.indd2

3/25/093:00:33PM

Introduction3

LarryenrolledatStanfordUniversity,andthebrother

latersoldittoYahoo!.Sergey’sfather-in-lawisaStan-

fordphysicsprofessor.Hissister-in-lawwasaSilicon

Valleyventurecapitalist.

Clearly,bothmenwereexceptionallysmartandhad

entrepreneurialpersonalities

—anditwasasifthey

quicklyrecognizedthepotentialmirroredinoneanother.

TheyfollowedtheirdestinywhentheydevelopedGoogle

searchsoftware.Andthecommunityaroundthem,ever

alerttothenextbigideafromtechiesjustbarelyoflegal

age,wasjustwaitingforthemtostepup.

TosaySergeyandLarryweretrainedfrombirthfor

whattheybecamedoesnotdiminishthevastimpor-

tanceormeaningofwhat

theyhavedone.Inthe12

yearssincetheyfirstbegancollaboratingonagraduate

schoolproject,theGoogleguyshave:

•Startedabusinessinacollegedormroomwithno

moreassetsthanagreatidea.

•Builtthelargestindexof

Webpagesintheworld.

GooglecatalogueditstrillionthWebpageinthe

summerof2008.

•Launchedwith

$100,000privatecapitaland

developedintoapubliccorporationwithamarket

capitalizationofaround$100million.

•Expandedfromjustthetwoofthemtomorethan

20,000employees.

cintro.indd3

3/25/093:00:33PM

GOOGLESPEAKS

•Growntheircompanyintoagiantwitha1.5

million-square-footheadquartersinMountain

View,California,plustwodozenotherU.S.offices

andtechnicalcentersinmore

than30countries.

•Gatheredacustomerbase,startingwiththose

usingacollegewebsiteandbecomingoneofthe

mostglobalcorporationsinexistence.

•SpreadfromasingleservicetoaWebportalwith

dozensofservicesandproducts

•DominatedtheInternetsearchindustry,handling

morethan70percentofallU.S.searches.

•Developedadvertisingrevenuesofaround

billionayear.Thisisnearlyasmuchadvertising

revenueasgeneratedbythefourmajorTV

networkscombined.

SergeyandLarrywererankedasnumbers32and33on

Forbes’2008listofbillionaires,witheachof

themworth

morethan$18billionatthetime.Theysubsequently

lostabout$6billioninthevalueoftheirGooglestock,

buttheyremainedfabulouslyrich.

Withtheirfortunecamefame.Notsomanyyears

afterGoogledebuted,LarryandSergeyvisitedan

Israelihighschoolforgiftedmathstudents.When

thepairwalkedonthestageintheauditorium,they

weregreetedwitharoarusuallyreservedforrock

stars.“Everystudentthere,manyofthemimmigrants

cintro.indd4

3/25/093:00:33PM

Introduction5

likeSergeyfromtheformerSovietUnion,knewof

Google.”4Andlikebuddingscientistseverywhere,

manyofthestudentshopedtoachievethesamesuc-

cessandstatus.

Despiteadistinctnerdiness,theirregaldemeanors

haveshownforthinthewaytheyinitiallymarketedtheir

company,astheydealtwithventurecapitalists,intheway

theychoseachiefexecutiveofficer,inthepathbywhich

theytookGooglepublic,andlater,whendealingwith

contentiousissuessuchascorporatesecrecy,privacy,the

intellectualpropertyofothers,corporategovernance,and

newproductdevelopment.Theyinvariablyactedinde-

pendentlyandwithself-assurance,ifnotwithagooddose

ofdivineright.

“Therehasneverbeenacompany,

”wroteauthor

KenAuletta,“whoseinfluenceextendedsofaroverthe

medialandscape,andwhichhadtheabilitytodisrupt

somanyexistingbusinessmodels.”5

Tosurvivetheeconomicdownturn,Googlehashun-

kereddown,prioritizinginvestmentsindisplayadver-

tising,onlinebusinesssoftware,andmobile

telephone

ads.Nevertheless,thecompanyremainsrobust.

PageandBrinhavebecomeaboutaspowerfulasitis

possibletobeinthehigh-techindustry.Andtheyhave

beenabletospinthatpoweruptoagloballevel.In

GreatBritain,thenewspaperTheGuardianpublishes

theMediaGuardian100list,rankingthemostpowerful

cintro.indd5

3/25/093:00:33PM

GOOGLESPEAKS

individualsinmedia.Therollembraceseverysector,

includingprintnews,broadcasting,publishing,adver-

tising,anddigitalmedia.LarryandSergeytookthetop

slot.Microsoft’sSteveBallmerwasseventhonthelist.

Yahoo’sJerryYang,whojustmonthsbeforewasaSili-

conValleycelebrityentrepreneur,wasnottobefound

Inordertoexpandtheiraudience,potentialtargets

foradvertising,Googlehascomeupwithanastounding

arrayofproducts.Theseincludeanonlineclassified

advertisingsite,aprojecttoscaneverybookeverpub-

lishedandputexcerptsonline,e-mail,instantmessag-

ingservice,mobilephonesoftware,andsoon.Google

alsosellscontent,forexample,viaanonlinevideo

sellingTVshowsandNationalBasketballAssociation

games.

It’seasytothinkofadvertisingsimplyasaneconomic

activity,albeitasomewhatannoyingonetomanycon-

sumers.Butadvertisingisclearlymorethanthat.“You

cantelltheidealsofanationbyitsadvertising,”wrote

travelwriterNormanDouglasin1917.6

EventhoughGooglemanagementislockedinonadver-

tisingprofits,thereistime

forfun.Googlegetsalittle

whimsicalwithsuchdreamsasbuildingaspaceeleva-

torthatcandelivergoodstothemoon.Googleismore

thanaplacetosneakinavanitysearch,learnmore

aboutablinddate,orclickonads.

cintro.indd6

3/25/093:00:34PM

Introduction7

LarryPageandSergeyBrinhavebeenthecutting

edgeofInternetsearchandhavemanagedtheirleading

positionssuperbly.Evenmoreintriguingistheir

involve-

mentinsomanyotherfront-runningtechnologies.They

playedaroleinfourofTimemagazine’sbestinventions,

includingthefirstandsecond.Firstplacewentto

23andMe,agenetictestingcompanycofoundedby

Sergey’swife,Anne;numbertwowastheTeslagreen

sportscar;andforty-ninthwasNanosolar,asolarenergy

companyproducingathin,lightweight,affordablesolar

panel.LarryandSergeywereearlyinvestorsinallthree

companies,andGoogleitselfhasinvestedin23andMe.

Thefourth-rankedgreatinventionof2008wasGoogle’s

ownidea,wind-poweredcomputerdatacenters.

Googlehasthousandsofengineersworkingoninno-

vativeapplicationsfor

Internetandmobileuse.Theyalso

arecollaboratingwiththeNationalAeronauticsand

SpaceAdministration(NASA)tobuildahigh-technology

campusatMoffettFieldnearGoogleheadquarters.

Undera40-yearagreement,

Googlewilllease42.2acres

ofbarelandfromNASAtoconstructupto1.2million

squarefeetofofficesandresearchanddevelopment

(R&D)facilities.7

GoogleandNASAhavebeguncollaborationonsev-

eralprojects,includingone

thatmakesiteasierforthe

scientiststopublishplanetarydataontheInternet.The

projecthasalreadyprovidedhigh

-resolutionlunar

imageryandmapstotheGoogleMoonprogramand

cintro.indd7

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GOOGLESPEAKS

resultedinthe“NASA”layerinGoogleEarth.Similarly,

theGlobalConnectionprojectenhancesthe“

National

Geographic”layerinGoogleEarthbyembeddinggeo-

referencedstoriesandimagesfromaroundtheworld.

TheDisasterResponseprojectdevelopsprototypesoft-

waretoolstohelpimprovefirstresponsetolarge-scale

naturaldisasters.

EventhePentagonsoughtGoogle’sadviceonhow

bettertomanageinformationtechnology.8

Thefoundersthemselvesaregenerallyconsideredto

begoodguys,well-intentionedanddoingtheirbest.In

theirbachelordaystheyengagedinwhatseemslike

innocentfun.OnephotoonthewebshowsSergeyata

fraternitypartydressedasagirl.9

Googleisanimpressiveintroductiontothetwenty-

firstcentury.ByloggingontoGoogle.comoroneofits

numerousotherdomains,youcanlocateinformationin

dozensoflanguages,checkreal-timestockprices,find

phonebooksforeveryU.S.city,getdirectionstoyour

doctor’soffice,orevencheckoutanaerialorstreetview

ofyourownhouse.

Thiscompanytakesusrightintotheborderlessglobal

society.Airplanesandtelephonesmovedusinthatdirec-

tion;computersarespeedingusevercloser.It’salsoa

societythatpushesforchange,sometimesrecklessly.

cintro.indd8

3/25/093:00:34PM

Introduction9

Nevertheless,changeisinevitable,andGoogleisforcing

governmentstocomeupwithnewequitableguidelines

andrulesfortheInternet

milieu.

Googlehasamysteriousmojothatisn

’teasyto

explain.Eachofthe2008U.S.presidentialcandidates

troopedtoMountainViewtomeetwithGoogleand

Googleemployees.Andrew

Orlowski,executiveeditor

ofthetechnologywebsite,TheRegister,claims,“The

Webisasecularreligionatthemomentandpoliticians

gotoprayateventsliketheGoogleZeitgeistconfer-

ence.Anypoliticianwhowantstobrandhimselfasa

forward-lookingpersonwillgethimselfphotographed

withtheGoogleboys.”10

Googlesetoffabuzzatboththe2008Republicanand

Democratnationalconventions.Thecompanyspon-

soredcentersforbloggerstoreportontheirobservations

andinsightsatbothmeetings.AttheDemocraticcon-

ventioninDenver,Colorado,thebloggers’headquarters

wasatwo-story,8,000-square-footfacility.Republicans

hadasimilarsetupinSt.Paul,andmorethan200blog-

gersregisteredforcredentialsthere.Forthefirsttime

sincetheAmericanRevolution,thepotentialexistedfor

nontraditional,oftennonprofessional,reporterstocon-

trolbreakingpoliticalnews.11

Google’schiefexecutiveoffi

cer,EricSchmidt,

becameanadvisortoPresidentBarackObama’stransi-

tionteam,helpingtochoosecabinetmembersforthe

cintro.indd9

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GOOGLESPEAKS

economyandtechnology.Additionally,thecompanyhas

useditshugeprofitsandinfluencetolobbyCongress

foradvantageousregulatory

changesandtocompetein

newfields,includingsoftware,wirelesscommunica-

tions,andalternativeenergysources.

Google’spositiveimagebegantoshiftasthecom-

panygrew.Atfirst,Googlewasthemiracleofthe

twenty-firstcentury;now,graduallyit’sbeginningtobe

seenasamenace.In2004,Wiredmagazineplastered

picturesofSergeyandLarryonitscoverabovethetitle

“Googlemania.”Twoyearslater,itrananotherstory,

headlined“Googlephobia:

Who’sAfraidofSergey?(Who

Isn’t?).”

Asforthisquickswitchinattitudes,“Ifinditsurpris-

ing,”saidSergey.12

Nevertheless,evenasthenegativenoisegrew,

Googlecustomersatisfaction

remainedhigh.Onerat-

ingservicegaveGoogleascoreof86outofapossible

100.ApplescoredonepointbelowGoogle.Bycompari-

son,manyU.S.airlinesrankedsomewherebetween54

and62.13

Amongthequestionsaskedinthisbookare:

•Whatdoesitmeanwhenasinglecompanybecomes

ourprimaryportaltotheentireWorldWideWeb?

cintro.indd10

3/25/093:00:35PM

Introduction11

Almostovernight,Internetsearchbecamethemost

importanttoolforfindingandprocessinginformation.

Googlehasbeenextremelycleverinfindingnew

waysandnewinformationtosearch.Italsohasgone

beyondsearchwithaWebbrowser,e-mailandother

services.

•Shouldindividualsbeconcernedabouttheir

privacyinrelationtoGoogleorothersearch

engines?Whatstepscanpeopletaketoprotect

themselves?

•Whoownsintellectual

property,andwhoisentitled

tousethemusic,books,art,andothercreationsto

earnmoney?

•HasGooglebecometoopowerful?

•Whatliesaheadforthecompanyasitmatures?

Googleisjustoveradecade

old,afterall.Larryand

Sergeyalwaysneedtobelookingbehindthem,

readyforthenextyouthfulentrepreneurswhomay

begainingonthem.

Herearesometipsforgettingthemostoutofthisbook.

RememberthatGooglecomesoutwithadvances,new

products,andideaswithsuchspeedthatit

’salmost

impossibletokeepup.Forthatreason,thisbookfocuses

somewhatmoreonthecompanyandthe

personalities

whocreatedandrunGooglethanitstechnology.

cintro.indd11

3/25/093:00:35PM

GOOGLESPEAKS

Thebookislargelybasedon

thewordsofLarryPage,

SergeyBrin,EricSchmidt,andothersatGoogle.I’ve

alsoincludedcommentsofthosewhofollowthecom-

panyclosely.Thusthetitle:GoogleSpeaks.

TokeeptrackoftheevolutionofeventsatGoogle,

turntothetimelineatthebackofthebook.Tobetter

understandtheuniquelanguageoftheInternet,referto

theglossary.

Finally,enjoythebook.ThesagaofGoogleisoneof

themostremarkablebusinesstalesevertold.Google

hasalottotellus.

cintro.indd12

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TheGoogle

SERGEYBRIN

“Sergeywasagoodboy,”hisfatherjoked,“whenhe

wasasleep.”1

RussianRoots

SergeyMikhailovichBrinisthesonofaUniversityof

Marylandappliedprobabilityandstatisticsprofessor

(hisdad)andaNASAscientist(hismom).Hewasborn

inMoscow,Russia,onAugust21,1973.Sergey’sparents

fledtotheUnitedStateswhenhewas6yearsold,and

bythetimehewas21hewasonhiswaytobecominga

multiculturalmarvel.

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GOOGLESPEAKS

InMoscow,thefamily,includingtheparentsand

Sergey’sgrandmother,livedinacrowded350-square-

footapartment.Sergey’stoddlerplaygroundwasagrim

courtyard,wheretheboyspenttwohoursadayplaying,

regardlessofhowcoldtheweather.2Additionally,the

familymetwithanti

-Semitisminthestreetsand

theworkplace.Theoutlookwassodiscouragingthatthe

familyknewtheymustleave.

WhenSergeywas17,theyreturnedtoRussiaforavisit,

despitetheirnervousnessatthereceptiontheymight

receive.AfterSergeysawthe

crumblinginfrastructure

andbleakatmosphereofhisnativeMoscow,hefeltgrate-

fulthathisparentshadimmigrated.3

“Ithink,ifanything,IfeellikeIhavegottenagiftby

beingintheStatesratherthangrowingupinRussia...

itjustmakesmeappreciatemylifethatmuchmore.”4

AmericanPassage

Thefamily,includingparents,grandmother,andyoung

Sergey,landedinAmericaonOctober25,1979.Withthe

helpoftheJewishcommunitythatsponsored

MichaelandEugeniaBrinfoundworksuitabletotheir

educationandsettledintoanewlifeinMaryland,just

ontheperimeterofWashington,D.C.

TheBrinshadnotlivedaparticularlyJewish-centered

lifeinRussia.“WefeltourJewishnessindifferentways,”

explainedMichael,

“notbykeepingkosherorgoing

tosynagogue.Itisgenetic.Wewerenotveryreligious.

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TheGoogleGuys15

MywifedoesnoteatonYomKippur.Ido.Wealways

haveaPassoverdinner.WehaveaSeder.Ihavethe

recipeforgefiltefishfrommygrandmother.”5

EducatingSergey

Forawhile,youngSergeyattendedtheMiskanTorah

HebrewSchool,buthedidn’tlikeitandafterafewyears

stoppedgoing.

SergeywasenrolledinthePaintBranchMontessori

SchoolinAdelphi,Maryland.HespokeEnglishwitha

heavyaccentwhenheenteredtheschool.Hedidn’tpick

uplanguageasquicklyasthefamilyhoped,butthe

bright-eyed,shyboydidadjust.HisMontessoriteacher,

PattyBarshay,recalls,“Sergeywasn’taparticularlyout-

goingchild,buthealwayshadtheself-confidenceto

pursuewhathehadhismindon.”6

HisfathergavehimaCommodore64computerwhen

Sergeywas9.Bymiddleschool,Sergeywasrecognized

asamathprodigy.HewentontoEleanorRooseveltHigh

SchoolinGreenbelt,Maryland,where,accordingto

someaccounts,hewascockyabouthismathskills,often

challengingteachersontheirmethodsandresults.

“Ididn

’tsystematicallyteachSergey;hewouldask

whenhewantedtoknowsomething,”hisfatherrecalled.7

TheRoadtoStanford

YoumightsaySergeywenttohighschool,college,and

graduateschoolattheUniversityofMaryland.He

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GOOGLESPEAKS

studyingmathatthecollegewhenhewas15,andquit

highschoolaltogetherafter

hisjunioryeartoenrollfull

timeandgraduatedinthreeyears.

AfterwinningaNationalScienceFoundationschol-

arship,Sergeyappliedtoseveralgraduateschools.

BeingrejectedbyMITwasn’tsuchadisappointment,

sincehehadhisheartsetongoingtoCaliforniato

attendStanford.Thatschoolappealedtohimbecauseof

itsproximitytoSiliconValleyandthenearbyarmyof

supportivehigh

-techentrepreneurs.Sergeyheaded

westtoearnhisPh.D.

Healsowelcomedtheprospectofgreatweather.In

California,Sergeyeasilytooktocampussociallife,

includingskiing,rollerblading,andgymnastics.

Whenhisfatheraskedwhetherhewastakingany

advancedclasses,Sergeyreplied,

“Yes,advanced

swimming.”8

RajeevMotwani,oneofSergey

’sadvisors,remem-

bers,“Hewasabrashyoungman.Buthewassosmart.

Itjustoozedoutofhim.”9

(Note:ThereismoreonBrin’sStanfordexperiencein

thesection“ForgingtheStanfordConnection.”)

BoyGeniustoAdultGenius

Asanadult,Sergeyisrestlessandedgy.Hisboyishgood

looksandlow,slopingshouldersmakehimseemper-

petuallyrelaxed.Heisactive,studyingtheflyingtra-

pezeatacircusschoolinSanFrancisco(exceptthathe

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TheGoogleGuys17

fellandhurthisback)andpracticingspringboarddiv-

ing.Hispuckishsenseofhumoroftengrabspeopleoff

guard,andattimesevencomesacrossasjuvenile.Nev-

ertheless,hisLevi’s,fadedt-shirt,andcrocswithsocks

orrollerbladesareacoverforapurposeful,serious,

evenaggressivepersonality.BothSergeyandLarryare

notoriousworkaholics.

SergeystillspeakswithaslightRussianaccentandends

manysentenceswith“andwhatnot.”LikeEric

Schmidt

andLarryPage,heoverusesthewordscale.Often,scale

describessomethingthatremainsworkableasitgrows

bigger,butinGooglespeak,ithascometomeansome-

thingthatcanbedevelopedintoaprofitableproduct.

WeddingonaCaribbeanSandBar

ItseemedcuriousthatSergeymissedGoogle

’s2007

Annualmeeting,butthen,thestorycameoutthatmay

haveexplainedit.Hewasgettingmarried.

Sergey’smotheronceexpressedthehopethathe

wouldweda“niceJewishgirl,”andherwishcametrue.

HemarriedAnneWojcickiinMay2007,intheBaha-

mas.Anne’sgreat-grandfatheronhermother’ssidewas

aprominentRussianrabbiwhocametotheUnited

Statesinthe1920s.

Withthebridewearingawhitebathingsuitandthe

groomwearingablackone,Brinandhislongtimegirl-

friendswamtoasandbar,whereafriendperformedthe

nuptials.

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GOOGLESPEAKS

Anne,aformerhealth-careanalystturnedentrepre-

neur,isthesisterofearly

GoogleexecutiveSusan

Wojcicki.ThesistersgrewupinPaloAlto,wheretheir

fatheristheheadofthephysicsdepartmentatStanford.

Theirmotherisarespectedjournalismteacheracross

thestreetatPaloAltoHighSchool.AnneattendedYale

University,graduatingin1996withadegreeinbiology.

LikeSergey,sheishigh-energyandathletic.Shewasa

memberofhercollegeicehockeyteamandacompeti-

tiveiceskater.

SergeyandAnnebecame

parentsforthefirsttimein

thewinterof2008withthearrivalofsonBenji.

23andMe

Googleput

$3.9millionintoAnneWojcicki

’sbiotech

startup,23andMe.Thecompanyisbuiltontheconcept

ofindividualizedgeneticmapping.Itsnamerefersto

thenumberofpairedchromosomesinhumanDNA.

Anne’scompanycantellyouaboutyourgeneticorigins,

yourpropensityorresistancetocertaindiseases,and

scoresofotherintimatedetails.

Aftersubmittingtogenetictestingby23andMe,Brin

learnedthathehasapropensityforParkinson’sdisease,

aconditionthataffectshis

mother.Inhisblog,Sergey

wrote:

Thisleavesmeinaratheruniqueposition.Inow

havetheopportunitytoadjustmylifetoreducethose

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TheGoogleGuys19

odds.Ialsohavetheopportunitytoperformand

supportresearchintothediseaselongbeforeitmay

affectme.

Headded,“Ifeelfortunatetobeinthisposition.”10

Untilthefountainofyouthis

discovered,allofuswill

havesomeconditionsinouroldage,onlywedon’t

knowwhattheywillbe.Ihaveabetterguessthan

almostanyoneelseforwhatillsmaybemineandI

havedecadestoprepareforit.11

Brin,alongwithhisparents,contributed$1.5million

totheUniversityofMaryland

’sParkinson

’sdisease

researchproject.

12Andhealsoisinvolvedwiththe

MichaelJ.FoxFoundation.

AnneBrinappearedontheOprahWinfreyshowand

talkedaboutherpregnancyandthebaby.“Ilookedat

Sergey’sprofileandIlookedatme,andwesawthatthe

childhasafiftypercent[chanceofbeing]lactose

intol-

erant.BecauseofSergey,thechildhasavery,very

unlikelychanceofhavingblueeyes.”13

WarrenBuffettdida23andMeDNAtestwithmusi-

cianJimmyBuffetttoresolvethelong-standing

tionofwhethertheywererelatedornot.“Thereport

camebackanditsaidifyoudon’tunderstandtheresults,

giveusacall.IdidcallandgotAnneonthephone.She

explaineditagainandaskedifIunderstooditnow.

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GOOGLESPEAKS

Ireallydidn’t.Shefinallysaid,‘Let’sputitthisway.I’mmorecloselyrelatedtoJimmyBuffettthanyouare.’”14

FlyingHigh

SergeyBrin’smothermarvelsattheheightofherson’s

success.“It’smind-boggling,”saysEugenia.“It’shardto

comprehend,really.Hewasaverycapablechildin

mathandcomputers,butwe

couldneverimagine

this.”15

Whenaskedhowitfelttohavesuddenvastwealth,

Brinsaid,“Ittakesalotofgettingusedto.Youalways

hearthephrase,moneydoesn

’tbuyyouhappiness.

ButIalwaysinthebackofmymindfiguredalotof

moneywillbuyyoualittlebitofhappiness.Butit’snot

reallytrue.Igotanewcarbecausetheoldone’slease

expired.Nothingterriblyfancy

—youcoulddrivethe

samecar.”16

Hassuccessandwealthchangedhim?“Idon’tthinkat

acertainscaleitmatters,”saidSergey,“butIdohavea

prettygoodtoybudgetnow.Ijustgotanewmonitor.”17

Sergeyalsoboughtapriceynewhomeonthe

peninsulasouthofSanFranciscoandaNewYorkapart-

ment,buthestilliscarefulwithpersonalmoney.“From

myparentsIlearnedtobefrugalandtobehappywith-

outmanythings.”18

c01.indd20

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TheGoogleGuys21

HelikestoshopatCostcowarehousestores,where

heboughthisparentsamembership.

“It’sastore

thatheknowsandunderstands,

”explainedSergey

father.19Luckily,thereisaCostcoverynearGoogle

headquarters.

LarryPage,theintellectualoftheGoogleguys,seeks

explorationofspacethroughhisinvolvementinthe

GoogleLunarX

-PrizeandbyservingontheX

-Prize

board.However,Sergey,thetrapezeartist,divesright

in.RecentlyhetraveledtoKazakhstantovisitthe

BaikonurCosmodromefora

minispacevacation.Brin

haspaid

$5milliontotravelintoactualspace.He

makethetripin2011withSpaceAdventures,acom-

panythatstruckadealwiththeRussianspaceagencyto

launchthefirstentirelyprivateflightintospace.Brin

willgetoneofthetwoseatsavailableonthatmission.

LARRYPAGE

WhileSergeyBrin

’sisanimmigrant

’sstory,Larry

Page,severalgenerationsawayfromtheimmigrant

experience,wasinmostwaysthetypicalAmericanboy

ofhisgeneration.Evenso,aswithSergey,theseeds

wereplantedearlyforhimtopullthePrinceArthur

swordfromthestoneoftechnology.Although

perhaps

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GOOGLESPEAKS

notconsciouslyonthepartoftheirparents,theyboth

weregroomedfrom

childhoodforthejourneythey

wouldtake.Theirdestinyevolvedfromtheirorigins.

Likehispartner,SergeyBrin,Larrycomesfrom

Jewishheritage.Page

’smaternalgrandfatherimmi-

gratedtoIsrael,wherehelivedinadeserttownnear

theDeadSea,andworkedasatool

-and-diemaker.

Larry’smotherwasraisedintheJewishfaith,buthis

fatherwastooscientificformuchreligion.Hisfocus

wasontheworldoftechnology.

CradledinaComputerCulture

Page’sgrandfatherwasaDetroitfactoryworker,buthis

grandsonhashadafardifferentlife.LawrenceEdward

PagegrewupinLansing,Michigan,surroundedby

math,science,andcomputers.Hisfatherwasahighly

regardedprofessoratMichiganState,wherehismother

alsotaughtcomputerprogramming.Hisparentsdi-

vorcedwhenLarrywas8yearsold.Nevertheless,the

boygrewupwithbothparentsinhislife.Larry’sfun-

lovingfathertookhimtoGratefulDeadconcertsas

achild.

Pageexplained,“mydadwasacomputerscience

professor,sowehadcomputersreallyearly.Thefirst

computerweownedasafamilywasin1978[Larry

wouldhavebeen5yearsold],theExidySorcerer.It

waspopularinEuropebutneverintheU.S.Ithad

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TheGoogleGuys23

32Kmemory.Mybrotherhadtowritetheoperating

system.”20

Larryinheritedatleastoneofhisfather’straits—the

tendencytohavespiriteddiscussionsabouteverything.

“Insomeways[Carl]wasalittlehardtodealwith,”said

GeorgeStockman,oneofProfessorPage’scolleagues

atMichiganState,“becausehewantedtoargueabout

everythingandhedid,and...[he]sharedalotofthat

withhisson.Sointellectuallytheysharedinalotof

discussion.”21

NikolaTesla,Page’sHero

Twelve-year-oldLarryPage,anaspiringinventor,read

abiographyofNikolaTesla,anditgothimtothinking.

Theboyadmiredthephenomenalnumberofinnova-

tionscreditedtoTeslabutwasstruckbythefactthat

Teslaledalifefraughtwithconflict,wasbadwith

money,diedinpoverty,andwaslittle

-knownoutside

scientificcircles.Certainly,schoolchildrendon’tstudy

TeslathewaytheydoThomasEdison.

Consideredthefatherofmodernphysicsandelectri-

calengineering,Teslainventedalternatingcurrent(AC)

powerandtheACmotor.Hepioneeredmanyscientific

advancesincludingrobotics,

remotecontrol,radar,and

computerscience.AlthoughMarconiclaimedit,Tesla

waseventuallyrecognizedastheinventoroftheradio.

Hisworkableinventionsaside,Teslaoftenwasregarded

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GOOGLESPEAKS

asamadscientist,thankstohisbehaviorandaraftof

wildideas.Teslaalsohaddifficultycommercializingor

findingpractical

applicationsforhisideasandinven-

tionsandthereforedidnotseemtoaccomplishasmuch

ashemighthave.

Pagedreamedofbeingascreativeanddoingsuch

greatthings,andhewantedhisworktomakeadiffer-

enceandchangetheworld.SincesomeofTesla’sinven-

tionsdidchangetheworld,itwouldalsoseemthateven

at12yearsofage,Pagealsowasaimingforrecognition

andfinancialreward.

TESLA’SSTORY

In1856,NikolaTesla,accordingtolegend,wasborn

exactlyatmidnightduringaragingelectricstorm,which

mayormaynotexplainhistroubledlifeandhisfascina-

tionwithanythingthatsparked.

Tesla,aCroatian,studiedin

severalrespectedEastern

Europeanuniversities,but,despitehisgenius,never

graduated.Heexperiencedanervousbreakdowninearly

lifebutneverthelessfoundworkintheemergingelectri-

calpowerindustry.WhenheimmigratedtotheUnited

States,hewenttoworkforThomasEdison,butleftEdi-

sonafteranargumentoverwages.Soon,Teslawasoff

doinghisownresearchandworkingoninventionsin

NewYorkandColoradoSprings.TheappealofColorado

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TheGoogleGuys25

wasthewonderfulelectricstormsoftheRockyMoun-

tains.VisitorstoTesla’slaboratoriesoftenfoundhimat

work,surroundedbyman-madelightning.AlthoughTesla

assuredthemthelightningboltswereharmless,thesight

terrifiedthevisitors.

Certainly,Teslawasquirky,mostlikelysufferingfrom

anobsessive

-compulsivedisorder.Hewasfanatically

clean,hadanaversionto

overweightpeople,andbecame

obsessedwiththenumberthree.Heoftencircledthe

blockthreetimesbeforeenteringabuilding,demanded

threenapkinsatmeals,andwouldnotstayinahotel

unlesstheroomwasdivisible

bythenumberthree.

Teslamayhavesufferedfromarareneurologicalcon-

ditioncalledsynesthesia,inwhichonetypeofstimulation

evokesthesensationofanother.Forexample,hearinga

soundorthinkingofa

numbermayproducethevisuali-

zationofacolor.

Theinventordiedaloneandpennilessatage86in

room3327oftheNewYorkerHotel.

TheTeslaCar

Despitehistragicstory,

Teslahasmanyadmirers,one

ofwhomnamedanüber-chic$109,000electricsports

carafterhim.

Thelimitedrunofhand-builtTeslaswilltravelupto

130milesperhouranddo0-to-60inaboutfourseconds.

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GOOGLESPEAKS

TheTeslaalsocango250milesonasinglechargeof

electricitytoitsnearlysilentmotor.Thecarispowered

byaninnovativelithium-ionbatteryandcostsapenny

miletodrive.

Thecar’sdeveloperschosetobuildasportsversion

becausetheyknewthefirstgenerationoftheircar

wouldbeexpensive,duetodevelopmentcosts.They

alsorealizedthatmanyof

SiliconValley’sbillionaires

payhomagetogreentechnologyandsimpleliving,but

alsohaveayenforfastcars.TheyhaveCorvettes,

Porsches,andothercostlysportscarstuckedawayin

thefive-cargarage.Theyfiguredawhiz-bangelectric

modelwouldhaveappeal.

Duringtheeconomiccrisisof2008,TeslaMotorsran

intofinancialtroubleandhashadtocutbackdrasti-

cally.Butthanksto$40millionfromanangelinvestor,

ithasbeenabletocarryon.Bytheendof2008,Tesla

hadordersformorethan1,200cars,andhaddelivered

50roadsters.Itwasshippingtencarsaweek.

BothLarryandSergeyhaveorderedtheTesla,as

haveactorGeorgeClooneyandCaliforniaGovernor

ArnoldSchwarzenegger.

MotivatedbyMontessori

LikeSergey,LarryattendedaMontessorielementary

school,wherehewasexposedtoaneducationalmethod

developedbyanItalianphysician,MariaMontessori,22in

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TheGoogleGuys27

theearly1920s.Herideasquicklyspreadaroundthe

world.Montessorioncewrote:“Thereisapartofachild’s

soulthathasalwaysbeenunknownbutwhichmustbe

known.Withaspiritofsacrificeandenthusiasmwemust

goinsearch,likethosewhotraveltoforeignlandsand

tearupmountainsintheirsearchforhiddengold.”23

Montessoribelievedthatchildrenwantedtolearn

andthatdevelopmentcame

instageswitheachchild.

Playingwaschildren’swork,andbydirectedplay,chil-

drenmovedalongwiththeirphasesofdevelopment

intodeeplearning.Asaresult,childrenoftenbecamemore

self-managing,responsible,

andcommittedtolifelong

learning.Certainly,hermethodsseemedtohaveshaped

bothSergeyandLarry.

“Wedonotwantchildrenwhosimplyobeyandare

therewithoutinterest,”shetaught,“butwewanttohelp

themintheirmentalandemotionalgrowth.Therefore,

weshouldnottrytogivesmallideas,butgreatones,so

thattheynotonlyreceivethembutaskformore.”24

TheLeadershipProgram

Later,LarryPagegraduatedfromEastLansingHigh

School,whereheplayedthesaxophone.Hewentonto

graduatewithhonorsandadegreeincomputerengi-

neeringfromtheUniversityofMichigan.AtUM,he

servedatermaspresidentofEtaKappaNu,theNational

HonorSocietyforelectricalandcomputerengineering

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GOOGLESPEAKS

students.There,andinanotherspecialprogram,he

begandevelopingleadershipskills.

“Inparticular,”hesaid,“theLeaderShapeprogram

wasanamazingexperiencethathelpedmealotwhen

westartedGoogle.

”25LeaderShapeisaUMpersonal

developmentprogramthatoriginatedintheearly1990s

intheCollegeofEngineering.

TheSolarRacer

ItalsowasattheUniversityofMichiganthatLarryfol-

lowedhisinterestinalternativeformsofenergy.Asa

memberoftheschool’ssolarcarteam,hetookpart

theearlyphaseofbuildingthechampion1993Maize&

Bluesolarcar.

TheUMsolarcarranintworaces,winninganational

championshipinSunrayce93,thepredecessorraceto

theNorthAmericanSolar

Challenge.Itthenwenton

tofinisheleventhinthe1993WorldSolarChallenge.

Maize&Blueisnowpartofthepermanentdisplayatthe

MuseumofScienceandIndustryinChicago.Thecar

hadanevolutionarydesigndescendedfromtheGeneral

MotorsSunraycerandtheUniversityofMichigan’sfirst-

generationcar,Sunrunner.Itisconsideredanearly

demonstrationofenergy-efficientautomobiledesign.

GoWest,Larry

Afterearninghisundergraduatedegree,Larry

headed

forStanfordUniversity.However,havingspenthisentire

c01.indd28

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TheGoogleGuys29

lifeinthefamiliarenvironmentaround

Michigan,heset

outtoCaliforniawithsometrepidation.“Atfirstitwas

prettyscary,”hesaid.“Ikeptcomplainingtomyfriends

thatIwasgoingtogetsenthomeonthebus.Itdidn’t

quitehappenthatway,however.”26

TragedystruckduringLarry’sfirstyearatStanford.

HisfatherCarl,asurvivorofchildhoodpolio,diedfrom

complicationsofpneumoniaatage58.

“IrememberLarrysittingonthestepsoftheGates

Buildingandhewasverydepressed,”saidSean

Anderson,

-schoolofficemateofLarry.

“Anumberofhis

friendswerearoundtryingtocomforthim.”27

Fortunately,hehadfamily.Larry’sbrotherCarlwas

livinginSiliconValleyaswell.Larryremainscloseto

hismotherandbrother.Thethreeofthemparticipated

inapeacemarchinOregon,protestingtheIraqwar.28

Lego-centricity

Asthelegendgoes,Larryoncebuiltaprogrammable

computerfromLegos.Pagehasalwayshadafascina-

tionwiththechildren

’sbuildingblocks,andGoogle

hasbecomeaLego-centriccompany.CraigSilverstein

recalledthatthecompanylearnedalessonaboutqual-

itycontrolearlyinitslife,thankstothedesiretobuild

-drivecaseoutofLegos.TheoriginalDanish

versionwasexpensive,andtosavemoneytheGoogle

teamwenttoadiscountstoreandboughtaknockoffof

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GOOGLESPEAKS

Legos.Sadly,thequalitywasn

’tthesame.Thecrew

cameinonemorningtofind

thattheirhard-drivecase

hadcrumbledintoaheapsometimeduringthenight.

Nevertheless,Larry’sloveofLegoscontinues.When

askedbyareporterwhathisfavoritetechnologywas,

hereplied,“ThethingI’mmostfondofisLegoMind-

storms.They’relittleLegokitsthathaveacomputer

builtin.They

’relikerobotswithsensors.I

’vebeen

doingsomeclassifiedthingswiththem.”29

MensaBoy

Astheengineerandmathematicianwhooverseesthe

writingofthecomplexalgorithmsandcomputerpro-

gramsatGoogle,Larryhasareputationasadeepthinker

andmajornerd.Whenhegavethekeynotespeechatthe

hugeLasVegasConsumerElectronicsShow,hebrought

RobinWilliamsonstagewithhim.Williamsmocked

Page,callinghim“Mensaboy.”Williamspilediton,say-

“Larry,doyourealizeyousoundjustlikeMister

Rogers?”30

LarryGetsMarried

“Thisistheweddingthateveryone’sbeentalkingabout

inSiliconValley,”proclaimedValleywageditor-in-chiefOwenThomas.31LarryPagewedLucindaSouthworth,

hislongtimegirlfriend,onDecember8,2007.They

weremarriedonNeckerIsland,RichardBranson

Caribbeanretreat.NeckerIsland,onceafavoritespot

c01.indd30

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TheGoogleGuys31

ofPrincessDiana,providedappropriateprivacyand

security.Andnowonder—roomstherestartat$50,000

perweekandcanclimbto$300,000perweek.

Southworth,aprettyblonde,achievedsomething

Pageaspiredtobutdidnotaccomplish—sheearnedher

Ph.D.LucystudiedbiomedicalinformaticsatStanford

UniversityaftergraduatingfromtheUniversityofPenn-

sylvaniaandearningamasterofsciencefromOxford

University.Additionally,she

hasdonemedicalsocial

workinSouthAfrica.

TheX-Prize

OneAprilFool’sDay,Googleannouncedplanstoopen

Googlunaplex,aresearchfacilityonthemoon.Itsounded

likeajoke,butwasit?BothoftheGooglefoundersexhibit

anunnaturalinterestinworldsbeyondourown.Atthe

StarTrekFortiethAnniversaryconventioninLasVegas,

Googlesetupaboothfeaturingtoolssuitablefor

interga-

lacticuse.

Yes,Googlunaplexwasallinfun,butLarryand

Sergeygetseriousaboutthesubjectofouterspace.

UsingGoogle’sSkysoftware,foundwithinGoogleEarth,

Websurferscanviewstarsandconstellationsandtake

avirtualtourofthegalaxies.

PageservesontheboardofdirectorsoftheX-Prize

FoundationandisthecorporatespiritbehindtheGoogle

LunarX-Prize,a$20millionrewardtothefirst

company

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GOOGLESPEAKS

todevelopasuccessfulmoon-exploringrobot.Atleast

tenteamsfromaroundthe

globehavesignedupto

competeinthenongovernmentalracetothemoon.

Theteamthatcollectsthegrandprizemustsoftland

aprivatelyfundedroboticspacecraftonthemoonby

December31,2012.Therobotmustbeabletorove

metersandbeamspecificvideo,images,anddataback

toEarth.

Larryseesallsortsofadvantagesofhavingaperma-

nentbaseonthemoon,rangingfromsolvingsomeof

Earth’senergyproblemstoservingasalaunchingpad

formoredistantexplorationoftheuniverse.

RaminKhadem,chairmanofoneofthecompetitors,

OdysseyMoon,explainswhythecompetitiontogetafoot-

holdonthemoon—again—issoexciting.“Themoonis

eighthcontinentandweneedtoexploititinaresponsible

way.WewanttowintheGoogleprizeand,ifwedo,that

willbegravy.Buteitherwaywearegoingtothemoon.”32

TheX-PrizeFoundation

offersseveralotherawards

forgroundbreakingworkthatwillbenefithumanity

withanemphasisonscientificendeavors.Inadditionto

thespaceprizes,thereisoneforautomotiveadvances

andgenomics.

NoMoreLaundry

Whenaskedhowsuccessandwealthhadchangedhis

life,Pagereplied,“Idon’thavetodothelaundry.”33

c01.indd32

3/25/092:48:44PM

TheGoogleGuys33

Laundrymaybeanimportantissue.Thestorygoes

thatonthemorningGooglewentpublic,Larryshowed

upforwork,uncharacteristically,inasuitandtie.

AccordingtoGQmagazine,hesomehowsatinaplate-

fulofcrèmefraiche.SympatheticGooglershelpedhim

removethemessfromtherearofhispants.34

THEPOWEROFPARTNERSHIP

WhenLarrytraveledtoStanfordforanorientationvisit

inthespringof1995,Sergeyalreadywasasecond-year

student.Theymetona

walkingtourofthecampus

guidedbySergey,andasthestorygoes,sparks

flew.Apparently,theyarguedabouteverytopictheydis-

cussed,whichisnotsurprising,consideringtheir

matchinglevelsofself

-confidenceandLarry

’sfamily

historyofconfrontationaldebate.Eachyoungmancon-

sideredtheothersomewhatarrogantandobnoxious,

yetthecontentiousconversationalsowasengaging.It

clearlywasinterestingtobothofthem.

Despitetheirverbaldifferences,LarryandSergey

walkedoncommonground.WhileSergeyisan

extrovertandLarryisquieter,theybothareplayfuland

alittlewacky.Theylookso

muchaliketheycouldbe

brothers,althoughSergeymoreresemblesthecharac-

terLinguiniinthePixarmovie,Ratatouille,thanLarry

does.Bothmenaresonsofcollegeprofessors,they

c01.indd33

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GOOGLESPEAKS

shareaJewishheritage,andbothreceivedaMontes-

soriSchooleducationaschildren.

Theyeachhaveonesibling,bothbrothers,although

Sergey’sbrotherisyoungerandLarry’sisolder.Carl

PageJr.alsoisasuccessfulSiliconValleyentrepreneur.

In2000,hesoldthecompanyhefounded,eGroups,to

Yahoo!for$432million.

BothLarryandSergeyaremathwhizzeswithatow-

eringregardforacademicachievement.

Sergeyadmitshemostlygoofedoffduringmuchof

hiseducation.“Itriedsomanydifferentthingsingrade

school,”hesaid.

“Themoreyoustumblearoundthe

morelikelyyouaretostumbleacrosssomethingvalua-

ble.”35Sergeyfollowedthiswanderingpathuntilhemet

Larry.Page,itseems,didn’twastemuchtimegettingto

workonhisgraduateproject.

AfterLarryarrivedatStanfordandconferredwith

advisor,hebegandevelopingaprojectcalled

“Back-

Rub,”namedforitsprocessofanalyzingbacklinkstoa

website.SoonSergeywasworkingwithhimonthe

projectoutofRoom360of

theWilliamGatesComputer

Sciencebuilding.

Theywerefollowingthetraditionoftheirindustry,

theroadfromprincestokings—thatofpartneringup

twoamazingbrainsonasingleproject.First,therewas

HewlettandPackard,andthenBillGatesandPaulAllen

formedaschooldays’alliancethatcontinuedforyears

c01.indd34

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TheGoogleGuys35

andchangedthewaytheworldworks.SteveJobsand

SteveWozniakfollowedatApple.Ithappenedagainat

Yahoo!withJerryYangandDavidFilo.

LarryandSergeyseemedtosensethenobilityintheir

relationship,theirsimilarbrainpower,thesameideals,

andthegrit.Withthiskindofmagic,allLarryandSergey

hadtodowasworkhardandmakegooddecisionsalong

theway,andsuccesswasinevitable.

Okay,thissoundstooeasy,andinfact,fewtherebe

whocanpullitoffatthelevelSergeyandLarrywere

ableto.Italsotakesimaginationandanexcellentidea.

ForgingtheStanfordConnection

Gates360,theStanfordgraduatestudentofficeshared

byLarryPageandSergeyBrin,haspracticallybecome

acomputerscienceshrine.Itisthebirthplaceofdreams,

especiallythedreamssharedbyyoungpeopleexcited

bycomputers,innovation,andgettingrichbylaunching

alollapaloozaofacompany.

ACreativeEnvironment

Nearlyalloftheoriginal

searchsoftwareandmethods

originatedatuniversities.CarnegieMellon,theUniver-

sityofNevada,andtheUniversityofCaliforniaat

Berkeleywereearlydevelopmentcenters.

ButStanfordUniversity,inextricablylinkedtothe

scientificaccomplishmentsofSiliconValleyandfueled

bytheventurecapitalcommunityonnearbySandHill

c01.indd35

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GOOGLESPEAKS

Road,PaloAlto,hasbeenthemostfertilehigh

incubatoranywhere.Hewlett

-Packard,Excite,Cisco

Systems,Yahoo!,andSunMicrosystems(

SUNstands

StanfordUniversityNetwork)andmanyother

companies—includingGoogle—wereconceivedthere.

“Theecosystemweworkin,ourownnetworkisreally

important,”saysventurecapitalistRandyKomisar.

“Whereournetworkisstrongestisrightaroundusin

SiliconValley.Itisnotasurprisethatalotofcompanies

webackcomingoutofEurope,Israel,evencomingout

ofcountrieslikeIndia,endupwiththemanagement

teamscomingtoSiliconValleytobuildtheirbusinesses,

becausethatecosystemissoreinforcingtothem.”36

“Wewereveryluckytohavebeenthereintheearly

days,”rememberYahoo!foundersJerryYangandDavid

Filooftheearly1990s.“Itwasvirginterritory.There

wassomuchcreativity.Everytimesomeonedidsome-

thingnovel,itwasmonumental.”37

RajeevMatwani,oneoftheGoogleadvisorsatthe

universityandanangel

investorinvarioushigh-stakes

ventures,says,“IcreditStanfordforcreatinganenvi-

ronmentwherepeopleindifferentareascanworkwith

eachotheranddothingswherethewholeisgreater

thanthesumoftheparts.”38

Stanfordmakesiteasyforgraduatestudentstopursue

workthatcouldleadtoinnovationandtheformationofa

c01.indd36

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TheGoogleGuys37

newcompany.ItsOfficeof

TechnologyLicensingwill

payforthepatentprocess,thenenterintolong

licensingagreementsthatletthebuddingscientists

launchtheirstartups,andwithluck,hitthejackpot.

StanfordPresidentJohnL.

Hennessysaysthatcom-

ingoutofschoolwithacompanyismoreproductive

thansimplywritingathesis:

WehaveanenvironmentatStanfordthatpromotes

entrepreneurshipandrisk-takingresearch.Youhave

thisenvironmentthatgets

peoplethinkingaboutways

tosolveproblemsthatareatthecuttingedge.Youhave

anenvironmentthatissupportiveoftakingthatout

intoindustry.Peoplereallyunderstandherethatsome-

timesthebiggestwaytodeliveraneffecttotheworldis

notbywritingapaperbutbytakingtechnologyyou

believeinandmakingsomethingofit.Weareanenvi-

ronmentwhereamilefromcampustheycantalkto

peoplewhofundthesecompaniesandhavelotsof

experiencedoingit.39

APoignantHistory

Stanfordwasfoundedin1891tohonorthememoryof

LelandStanfordJr.,thesonofrailroadmagnateand

CaliforniaGovernorLelandStanfordandhiswifeJane.

LelandJr.diedoftyphoidjustbeforehissixteenth

birthday.AmongthemembersofStanford’sfirstclass

c01.indd37

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GOOGLESPEAKS

wasafuturepresident,youngHerbertHoover.Stanford

isatthetopofitsgameinanumberoffieldsofaca-

demicstudy,rangingfromjournalismtomedicine.

TheStanfordoftodayisvirtuallyacityonitsown.Its

sprawlingcampusreflectstheCalifornialandscapesur-

roundingit,withpalm,eucalyptus,andcypress

groves,

Mission-stylearchitecture,andred

-tiledroofs.The

campusisrichwithart,andstudentsblithelypedaltheir

bicyclesamongoneofthebestcollectionsofRodin

sculptureanywhere.Most

recentbuildingsseem

designedtofitin,buttheuniversity’sdiversityofpro-

gramsanditswealthhaveledtocertainexamplesof

morefunctionalandlessstylizedarchitecture.Never-

theless,itisaleading-edgeuniversity,andthecampus

jumpswithlife.

Clearly,Stanfordisaplacewherebrightyoungpeo-

plecanmakeconnectionsintheirownfieldthatlast

throughouttheircareers.Suchhasbeenthecasefor

SergeyandLarry.

Becausetheirparentstaught

inthefieldofcomput-

ersandscience,bothyoungmenhadspenttheirlives

inthissocialandpoliticalstructure.Theywerewell

awareoftheheadyacademicenvironmenttheywere

entering.Thiswaswherethelearnedsorcererswould

putthecrowningtouchontheirpreparationforthe

future.AttendingStanfordwasabigdealforboth

ofthem.

c01.indd38

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TheGoogleGuys39

AnAcademicoranEntrepreneur?

“IdecidedIwaseithergoingtobeaprofessororstarta

company....IwasreallyexcitedtogetintoStanford.

Therewasn’tanybetterplacetogoforthatkindofaspira-

tion.Ialwayswantedtogoto

SiliconValley.”40AtStanford,

LarrychoseashisadvisorthehighlyrespectedTerry

Winograd,anearlyexpertinhuman–computerinterac-

tion(HCI).Winogradisoneoftheforemostthinkersin

thefieldofsoftwaredesignandisespeciallyknownfor

hisworkonnaturallanguage.

Likemostcomputerengineers,Larrylovedgraphs.

HeviewedtheInternetasperhapsthelargestgraphever

created,andonethatwasgrowinglargerbythesecond.

HeandWinogradagreedthat

basedonthatconcept,he

shouldbeginexaminingthislinkstructureasapartof

hisgraduateproject.Pagefirstcalledhissearchsystem

“BackRub,”becauseitseemedthathewasforming

searchlinksthroughabackdoor.Between1996and

1998,studentsandfacultyincreasinglyusedthesearch

engine,anditbecameapparentthatthetechnologycould

bethebasisforacompany.(Thereismoreaboutthe

developmentofthecompanyinthesectionsahead.)

AGrimGoodbye

Perhapsthemostdifficultconsequenceofbuildinga

companyforbothBrinandPagewastheneedtodrop

outofgraduateschool.Bothofthemdreamedofearning

c01.indd39

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GOOGLESPEAKS

aPh.D.,abadgeofhonorintheirfamilies.Atfirst,they

tookleavesofabsence,andfinallyhadtoemptyout

theirStanfordofficespace.In1999,withinitialfunding

inplace(includinga$25millionventurecapitalwar

chest),BrinandPagerealizedtheywouldbetoobusyto

continuetheirgraduatestudies.Winogradrecallsthe

day,ayearlater,whentheyfinallycleanedouttheir

office:“Theyhadthisgrimlookontheirface[s]because

theyhadtogotoStanford

withemptyboxes,andleave

withthemfull.”41

Sergey’sparentswerenothappywiththedevelopment,

either.“Weweredefinitelyupset,”saidhismother.“We

thoughtanyoneintheirrightmindoughttogetaPh.D.”42

NETWORKINGATITSBEST

Theyleftwiththeirloaded-upcardboardboxes,butthe

Googleguys’connectiontoStanfordhasneverended:

•StanfordwasgoodtoGoogleandGooglewasgood

toStanford.Infact,GoogleandStanfordareliterally

businesspartners.OneofGoogle’smainassets,the

PageRankpatent,isownedbyStanfordUniversity.

Googlepaidtheuniversityinstockandcashfor

anexclusivelicensingpartnership,plusAnnual

royalties.Thepatentisexclusivelylicensedto

Googleuntil2011.Typically,ifthepatentisproduc-

ingresults,itcanberenegotiatedatthattime.

c01.indd40

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TheGoogleGuys41

•ItwasoneoftheirStanfordprofessors,David

Cheriton,whointroducedLarryandSergeytoAndy

Bechtolsheim,whoisnotonlyacomputerwhiz,

butalsoawizardatspottingSiliconValleystartups,

inwhichheinvests.Cheritonbecameanearly

Googleinvestoraswell.

•Google’sfirstemployeewasfellowgraduatestudent

CraigSilverstein.SilversteinnowisGoogle

DirectorofTechnology.

•Sergey’sPh.D.advisor,ProfessorRajeevMontwani,

becameacompanyadvisor

whenSergeyandLarry

leftStanford.MontwanialsowasanearlyGoogle

investor,holdinganundisclosedamountofshares

inthecompany.

•In2002,TerryWinogradtookasabbaticalfrom

Stanfordandbecamevisiting

researcheratGoogle.

Hespenthistimetherestudyingboththetheory

andpracticeofhuman-computerinteraction.

•ThedesignerofGoogle’slogo,RuthKedar,wasa

Stanfordfacultymember.

•JohnHennessyhasserved

ontheGoogleboardof

directorssinceApril2004.Beforebecomingpresident

ofStanfordin2000,Hennessyheldvariouspositions,

includingdeanoftheSchoolofEngineeringand

chairoftheDepartmentofComputerScience.

•EricSchmidthastaughtbusinesscourses,part

time,atStanford.

c01.indd41

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GOOGLESPEAKS

•ForbothLarryandSergey,

theStanfordconnection

becamepersonalwhentheymarriedwomenthey

metthere.Sergeywedthedaughteroftheheadof

thephysicsdepartment,AnneWojcicki.

•LarryPagemarriedStanfordgraduateLucySouth-

worth.

BURNINGMAN

JustdaysafterGooglewentpublic,thefoundersheaded

outtoBurningMan,anindication,sayfriends,that

wealthhadn’tchangedtheirpriorities.

OneofthefirstGoogle

doodleswasastickfigure

addedtothestandardlogo.Itsignaledtoemployeesthat

LarryandSergeyhadslippedawaytomakethelong

driveintoNevada’sBlackRockDesertforthenotorious

festivalofpersonalfreedom.

TheyandEricSchmidtare

amongthenearly50,000

peoplewhogatherfortheeventeachLaborDayweek

inoneofthemostbarrenanddesolatelandscapes

anywhere.Infact,LarryandSergeytookaspecial

interestinSchmidtwhentheyinterviewedhimforthe

potentialCEOofGooglebecausehewastheonlycan-

didatewhoattendedBurningMan.Friendssaythat

LarryandSergeyhavereceivedlotsofinspirationfrom

BurningMan.

c01.indd42

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TheGoogleGuys43

BurningMan—fromits1986startonSanFrancisco’s

BakerBeachthroughitsevolutionintothebustlingcity

ithasbecome

—alwayshasbeenstrange.It

’sart,it

music,it’slifestyle,it’sfreewheelingbehaviorandattire

(orlackofattire)—it’sanoutpostforradicalpersonal

expression.Theritualtorchingofa40-footeffigyofa

manhasbecomealmostsecondarytoalltheother

activities.

Thosewhoshowupmustprovideentirelyfortheir

ownneeds,andtheycomeexpecting(andnodoubt

hopingfor)anything:Afederalgovernmentemployee

wasastoundedtorunintoherbossstrollingthrough

BlackRockCity(BRC).Hewasdressedinboots,chaps,

acowboyhat,andnothingelse.Aphotographcirculates

ontheInternetofSchmidtat

BurningMan,dressed

modestlyinacotton-candy-pinkcowboyshirtandhat.

Hewaswearingpants.

IfyougolookingforLarry,Sergey,orevenEricatthe

gatheringofthetribe,don’texpecttospotthem.They

surelywillbetrickedoutin

elaboratecostumesand

facemakeup.

c01.indd43

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Supervision

EricSchmidtissometimescalled

“thethirdlegof

Google.”Likethethirdlegonastool,hehelpskeepbal-

ance.Andeventhoughhisbackgroundisintechnology,

healsomovestheGooglebusinessmodelforwardina

decisive,purposefulway.

Althoughtheyhadpromised

theirventurecapitalists

thattheywouldhireaseasonedCEOforGoogle,Larry

andSergeywereatfirstslowtodoso.Thetwocouldn’t

findanyonewhosuitedtheirstyle.Venturecapitalists

JohnDoerrandMichaelMortizwerepushingthemto

getonwithit.TheyfinallysenttheGoogleguyssome-

onetheyhadseeninactionbefore:Dr.EricSchmidt.All

ofthishappenedthreeyearsbeforeGooglebecamea

publiccompany.

c02.indd44

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AdultSupervision45

SchmidtnowsharesresponsibilityforGoogle’sdaily

operationswithLarryandSergey,andasCEOhehas

legalresponsibilityforthecompany

’svicepresidents

andthesalesorganization.

Schmidthasbeendescribedasmoreofapragmatist

thanavisionary,alow

-keyedleaderandaskilled

collaborator.

AfterSchmidthadbeenat

Googleforawhile,heand

BrinandPagemadeaninformalpacttostaytogetherin

theGoogleventureforatleast20years.

“Weagreedthemonthbeforewewentpublicthatwe

shouldworktogetherfor

twentyyears,”saidSchmidt.

Bythetimetheagreementisfulfilled,Schmidtwillbe

69yearsold;Pagewillbe51,andBrin50.1

Knownforhisslogan,

“Don’tfighttheInternet,

SchmidtiscreditedwithpositioningGooglesmackin

themiddleofnearlyeveryimportantdevelopment

relatedtothecommercializationoftheWeb.

THECOLLECTIVEWISDOMOFSILICONVALLEY

EricEmersonSchmidtwasborninthespringof1955in

Washington,D.C.Aftergraduatingfromhighschoolin

Yorktown,Virginia,heearnedanelectricalengineering

degreefromPrincetonUniversityandthenadoctorate

incomputersciencefromtheUniversityofCaliforniaat

Berkeley.

c02.indd45

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GOOGLESPEAKS

Schmidtearnedhistech

stripestoilingintheranksof

respectedSiliconValleyveteranorganizations.He

workedataseriesofcompanies,includingBellLabs,

Zilog,andXerox’slegendaryPaloAltoResearchCenter

(PARC).Heprogressedto

chieftechnologyofficeratSun

Microsystems,andthentochiefexecutiveofficerof

Novell.WhenNovellwasacquiredbyCambridgeTech-

nologyPartners,Schmidtleftthecompany,makinghim

availableforrecruitmentbyGoogle.

ThoughtheimplicationthatSchmidtprovidesadult

supervisiontoimpetuousyoungmenmayrankle,occa-

sionallySchmidt’sparentalproclivityhaspoppedupin

public.Atonemeeting,LarryPagewasaskedabouthis

opinionoftheU.S.PATRIOTAct,legislationthatsome

peoplefearimpingesonpersonalprivacy.Larrystarted

toreplywiththeoreticalcommentsabouttheAct,when

Schmidtinterrupted,“Thebestwaytoanswerthatis,it’s

thelawof[the]landandwehavetofollowit.”3

(Formoreaboutprivacy,seethesection

“Privacy

Issue”inthechapter“GoogleGrowsUp.”)

HE’SBEENTHEROCK;THEY’VEBEEN

THEROCKETS

Schmidt’swell-seasoned

perspectivehasbeenaneffective

complementtotheGooglefounders

’youthfulexuber-

anceandimpatientgoals.Schmidtseemstotelegraph

c02.indd46

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AdultSupervision47

reliabilityandstability.Yet,despitehisdown

-to-earth

demeanor,Schmidtencouragespeopleto“setaudacious

goals.”4Totheircredit,LarryandSergeyhadenough

acumentochooseSchmidtasapartner,andclearlythey

havelearnedfromhim.

AtGoogle’s2008annualmeeting,Schmidtdeclared

thattheGoogleguyshadgrownup:

Theynowfunctioninthecompanyastheseniorexecu-

tiveswiththekindofskillsandexperience....

AtthatpointLarryinterrupted,“...wewishwehadfive

yearsago.”

Schmidtcontinued:

Nowwedon’thavethesamekindofarguments.In

fact,theyreallyarerunningthecompaniesthatthey

foundedatthescaleandwiththeinsightsthatyou

wouldexpectofpeoplewhoarenolongeryoung

foundersbutarematurebusinessleaders.5

AMANOFINFLUENCE

ThankstoGooglestockoptions,Schmidtranksasthe

126thrichestpersonintheworld,accordingtoForbes.

SchmidtalsoservesonPrincetonUniversity

’sand

Apple’sboardofdirectors.

Asforhispersonallife,

Schmidtandhiswife,Wendy,

liveinAtherton,California.Theycollectmodernartand

c02.indd47

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GOOGLESPEAKS

theworkofcontemporaryartistsandrunafamilyfoun-

dationthatmakescontributionstoenvironmentaland

economicsustainabilityprojects.Heisanavidprivate

pilot,whichmayexplainGoogle’sinterestingfleetof

aircraft.

Towardtheendofthe2008presidentialcampaign,

SchmidtcameoutinfavorofBarackObamaandbegan

stumpingthecampaigntrailwiththecandidate.Despite

Schmidt’spreference,mostofthe2008presidentialcan-

didates,includingHillaryClintonandJohnMcCain,vis-

itedGoogleplexandspokewithemployees.

Schmidtexplainedhispersonalpositionthisway:

Well,peoplegiveforall—forallsortsofreasons,but

myownviewisthatSenator

Obama,nowpresident-

electObama,touchedachordwhenhetalkedabout

makingtheworldabetterplaceforallofus.Hisfocus

onthemiddleclass,hisfocusonmakingeducation

stronger,hisfocusonscience,andhisfocusondou-

blingtheresearchbudget.Allthingswhichhavelargely

beenignoredunderthecurrentadministration,those

arethethingsthatIthinkthatreallyhitachordandof

coursetheydidn’thitachordwiththeopposition.6

ObamatoldvotersthatSchmidtwouldbeamongthe

businessleaderstobeadvisinghimifhewereelected

president.Schmidt’snamewasatthetopofthelisttobe

namedObama’scabinet-leveltechnologyadvisor,but

c02.indd48

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AdultSupervision49

Schmidtsaidhewasn’tinterestedinthepost.Afterthe

2008election,SchmidtappearedonCNBC’sMadMoney,

andJimCrameraskedhimaboutthepossibility:

CRAMER:Allright,butlook,

here’swhatIwoulddoif

Iwere(Obama).Iwouldsay,okay,Eric,youtalka

goodgame.IwantyoutoresignfromGoogleand

cometoworkformeasmychieftechczar.Ifcalled,

wouldyoudoit?

SCHMIDT:Iloveworkingat

Google,andI’mhappy

atGoogle,sotheanswerisno.7

PerhapsSchmidtalsodemurredduetohiscommitment

tostaywithGoogleforthelonghaul.

BecauseofhisworkwithPresidentObamaandlabors

onbehalfofthequestforviablealternativeenergy

sources,Schmidthasbeeninthepubliceye.Nancy

Litwack-Strong,aDenverPostreader,whogrewupina

homewhere

menschwasawordofhighpraise,

respondedtoacolumnaboutSchmidtthisway:

AfterreadingAlLewis’columnonSunday,Ifeelcom-

pelledtocallGoogleCEOEricSchmidtamensch.He

understandsthesocietalfunctionsthatourtaxessup-

port,heappreciatesthe

opportunitiestosucceedthat

hehashadinthiscountry,andheishappytodohis

fairsharetokeepourcountrygreatandkeepour

countrystrong.Iwishmorepeoplethoughtlikehim.8

c02.indd49

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GOOGLESPEAKS

Despitethisimpression,somesaySchmidtcanbequite

harsh.RumorscirculateontheInternetabouthisper-

sonallifeandsomeconsiderhimaSvengali,justas

interestedincontrollingtheworldaschangingit.Cer-

tainly,hehastakenahardlineoncopyrightandprivacy

issues.Whileheclaimstoalignwiththeinterestsof

Internetsearchers,heclearlyalignswithGoogle’sbest

chancestoselladvertising.

CLIMBINGADIFFERENTKINDOFMOUNTAIN

IsthereanythinginhislifeSchmidtwantstoaccom-

plishandhasn

’tyetdone?Yes,thereis.

“I’vealways

wantedtoclimbMt.Everest,

”hetoldagatheringof

NASAscientists.“Whenyoulookatme,clearlythat’s

notgoingtohappen.”9Hehas,though,climbedvicari-

ouslyusingGoogleEarth,andhefoundEveresttobe

extremelycold.

c02.indd50

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Beginning

Fromthetimetheymetin1996until1998,Larryand

Sergeycontinuedtoexperimentwithvarioussearch

ideas.Larrybeganstudying

theimportanceoflinks

withhisownhomepageontheStanfordwebsite.With

thesearchenginehenamedBackRub,hewroteand

improvedonsearchcodebasedonlinksbetween

websites.

PageandBrinsoonlatched

ontotwobigideas.The

firstwasbasedonBackRubbutwasrenamed“Page-

Rank”afterLarryPage.PageRanktreatedthenumberof

timesasitewaslinkedtoothersasaroughmeasure

ofitsauthority.Thesecondwastoautomateandsanctify

thesearchprocessandtocopewiththeever-increasing

numberofsites.Inordertogivesomeobjectivityto

theresults,humanscouldworkwiththealgorithm,

c03.indd51

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GOOGLESPEAKS

butnevertinkerwiththesearchresults.(Thisstillis

mostlytrue.However,withtheintroductionofGoogle’s

SearchWiki,searchersthemselvescantailorthe

results

invariousways.)

OnceLarryandSergeyhaddefinedthenewwayto

searchanddelivertheresults,theywerefacedwithtwo

moremajorproblems:howtocollecttheentireWorld

WideWebintoonedatabase

andhowtofindenough

computerpowertostoreandprocessthehugevolumes

ofinformation.

Thepairscroungedaroundtocollectcomputersfor

theproject,oftenhauntingtheStanfordloadingdocks

formachinerytoborrow.The

firstversionofGoogle

wasreleasedinAugust1996,ontheStanfordWeb.The

addresswasgoogle.stanford.edu.

VeryquicklyStanfordgrewwearyoftheburdenthe

twogradstudentswereplacingonitssystem.Theyin

turnoutgrewStanford’scapacitytoprovideequipment

andtohandletheburgeoningnumberofsearchrequests

comingin.Alittleoverayearlater,SergeyandLarry

tookthesearchengineoffStanfordserversbecause

Googletookuptoomuch

bandwidth.In1997,Google.com

wasregisteredasadomainname.

Theneedforphysicalequipmentcontinuedto

explode.Withoutinitialresources,LarryandSergey

foundcomputersandequipmentwhereverthey

could.

TheycobbledtogetherinexpensivePCstoholdtheir

c03.indd52

3/25/092:50:27PM

IntheBeginning53

data.Theygotagooddealonaterabyteofdisksand

builttheirowncomputerhousingsinLarry

’sdorm

room.Thedormroombecametheirfirstdatacenter.

“Larrywouldscourtheworldtosaveapenny,”recalled

CharlesOrgish,Stanford’s

headofcomputersystems.1

Whatstartedasanecessitysoonbecameoneof

Google’scompetitiveadvantages.Theyfoundthattheir

jerry-riggedcomputersystemwaseasytorepairand

modify.“Othersassumedlargeserverswerethefastest

waytohandlemassiveamountsofdata.Googlefound

networkedPCstobefaster,”explainedGoogleonits

CorporationInformationWebpage.

VenturecapitalistandGoogleboardmemberJohn

DoerrsaysthatGoogleuses

“pile-up”computing.It

pilesupabunchofcomputers,connectsthem,and

buildsadatacenter.Thewaythemachinesaresetup,

whenonebreaksdowntheentiresystemdoesnotbreak

down.Thecrippledmachineisignoredandtheworkof

processingqueriescontinues.

Bymid-1998,Sergeysetupabusinessoffice,andthe

pairbegancontactingpotentialpartnerswhomight

wanttolicenseasuperiorsearchengine.

TheyhopedtosellGooglethroughtheventurecapi-

talfirmofKleinerPerkinsCaulfield&Byers.They

shoppedthecompanyaroundat$1million.AltaVista,

Excite,andthenow-defunctInfoseekwereamongthe

companiesthatsawnocommercialbenefittoGoogle.

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GOOGLESPEAKS

Nodoubttotheireverlastingregret,thesecompanies

passed.LarryandSergeyhadnoluckfindingabuyer.

Theyoungentrepreneursfacedadauntingproblem.

Whiletheywerepassionateabouttheirproject,atthat

timefewothersinthecomputerindustrysawInternet

searchasanimportantaspectoftheirwork.

However,whenLarryandSergeycalledonDavid

Filo,oneofthefoundersof

Yahoo!,herecognizedthe

valueoftheirtechnologybutencouragedthemtogo

forwardwithformingtheirowncompanythewayhe

andJerryYanghaddone.“Whenit’sfullydevelopedand

scalable,”Filosaid,“let’stalkagain.”2

Itwasn’ttheanswertheywerehopingfor,butitgave

themencouragement.AndFilodidpointtheminthe

rightdirection.Thedisappointmentinnotbeingableto

selltheirworkmayhavebeenthegreateststrokeof

luckintheirlivessofar.

“Thatpeoplewereconcentratingonotherthingswas

crucial,”recallsCraigSilverstein,thecollegefriendwho

wasthefirsttojoinPageandBrinasanemployee.“It’s

verypossiblethatifsomeonehadbeentrulyinterested

inourtechnology,wewouldhavejustsoldtothem.”

“Werecognizedthatalotofcompaniesdon’tmakeit,”

addedSilverstein,nowGoogle’sdirectoroftechnology.

“Theventurecapitaliststriedtoscareus,sayingthat80

percentofstart-upsfail.

Larryshotbackwith:‘Yes,but

mostofthosearerestaurants.’”3

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IntheBeginning55

Goingitalonewasarisk,butLarry’sself-confidence

showedupearlyintheGooglegame.Hisadvisor,Terry

Winograd,feltthestudentshadaviableproductbut

knewtheyneededtomoveoffcampusandbeginacting

likearealcompany.ThattookmoneythatSergeyand

Larrydidn’tyethave.“I

don’tseehowyou’reevergoing

togetthemoney,”lamentedWinograd.Larryreplied,

“Well,you’regoingtosee.We’llfigurethatout.”4

RuthKedar,whodesignedtheGooglelogo,saidshe

felttheGoogleguyscametoherwithvision,direction,

andoptimism.“Ingeneral,”saidKedar,“whenpeople

speakabouttheirbigdreamsinlife,theyapologize

manytimesforit,forthepretension.They(Brinand

Page)weren’tlikethat.Itwascleartothemfromthe

startthattheyhadsomethingbigontheirhands.”5

Google’scorporatepagenotedthatdespitethequiv-

erybeginning,Googlewasonitswaybythelate1990s.

“Clearlyweevolved,”saystheGooglewebsite.“What

hadbeenacollegeresearchprojectwasnowareal

companyofferingaservicethatwasingreatdemand.

SoonSeptember21,1999,thebetalabelcameoff

Google.com.”

THEULTIMATESEARCHENGINE

In1996,Larrycameupwiththenotionofusinglinks

betweenWebpagestoranktheirrelativeimportanceto

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GOOGLESPEAKS

searchers.Themorelinksawebsitehad,themore

likelyitwastocontainthemostusefulinformation.

Theconceptsoundssimple;executingtheideawasa

littlemorecomplicated.Nevertheless,itdidn’ttakelong

forPage’sbrainchildtodominatetheworldofInternet

search.

PeopleuseGooglemorethan

200milliontimesaday

inmorethan100languages,fromKurdishtoKlingon,

anditdoesdelivertheresultsinaflash.Googlesearches

fivebillionWebpagesforlinksintwo-tenthsofasecond.

ByearlyNovember2008,Google’sshareofdomestic

Websearchesgrewto71.7percent,comparedwith

17.7percentbyitsclosestcompetitor,Yahoo!,and5.4

percentbythird-rankingMicrosoft.Googlealsoruled

thesearchbusinessfinancially,claiming76percent

ofthe2008marketinterms

ofrevenue.6

OneofthereasonsforGoogle’ssuccessisthatpeople

liketheresults.Butaddingtothat,Googleisubiquitous.

Itisconstantlybeforetheeyesofmostpeopleusing

theInternet.Googlehasbeenabletoprovidesearch

servicesforalargenumberofInternetoperations,

includingAmericaOnLine(AOL)andthefreeWeb

browser,MozillaFirefox.In2007,theMozillaFounda-

tionreceived$66million,or88percentofits$75million

inrevenues,fromapartnershipwithGoogle.

YetLarryandSergeybelievethatGooglestillisin

theearlystagesofdevelopment.Thesearchengineof

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IntheBeginning57

thefuturewillbesomuch

moreintuitive,morealongthe

linesofasuperintelligence—areferencelibrarianwho

knowseverythingthereistoknowandhowtofindit.

Google’sMarissaMayerwonderswhysearchhasto

bewithwords.“Whycan’tIentermyqueryasapicture

ofthebirdsoverheadandhavethesearchengineiden-

tifywhatkindofbirditis?Whycan’tIcaptureasnippet

ofaudioandhavethesearchengineidentifyandana-

lyzeit(asongorstreamofconversation)andtellme

anyrelevantinformationaboutit?”

“Ifanybodythinksthefutureofsearchisgoingtolook

likethepresentsearch,that

’scrazy,

”saidMicrosoft

CEOSteveBallmer.“Theuserinterfaceonsearchhasn’t

changedforsixyears.You

stillgetthesamedull,boring

10bluelinks,forGod’ssake.Can’twedobetterthan

that?”8

NOTINVENTING,BUTIMPROVINGUPON

InternetsearchwasgoingonlongbeforetheGoogleboys

attackedtheproblemofachievingmeaningfulresults

fromsearches.Althoughtheydidn’tinventtheconceptof

search,theyvastlyimproveduponsearchtechniques.

SusanWojcicki,whosehomeservedasGoogle

incubator,recallsmanyearlydiscussionsaboutsearch.

“Notanotherbutabettersearchengine,

”shesaid.

“Fromthebeginningtheyhadaveryclearvisionthat

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GOOGLESPEAKS

theycouldbuildsomethingmuchbetterthanwhat

existedatthetime.”9

Google’sCorporateInformationWebpageexplains,

“Whereothersaccepted

apparentspeedlimitsimposed

bysearchalgorithms,Googlewrotenewalgorithms

thatprovedtherewerenolimits.AndGooglecontinues

toworkonmakingitallgoevenfaster.”

LongbeforeGooglecamealong,newspapers,maga-

zines,andnewlyestablishedwebsitesbelieveditwas

possibletoreaprewardsfromInternetadvertising.

Nonewereverygoodatit.Yettoday,Googledominates

thatbusiness.Googleperfectedanadvertisingconcept

developedbyacompany

calledGoTo.com,whichlater

wasrenamedOvertureandsoldtoYahoo!.Frome-mail

tocellphoneplatforms,Googlehasahistoryofcoming

inlateandmakingitbetter.

TherearemultipleexamplesofhowGoogleeither

borrowedorboughtconceptsandmadethembetter

andmoreusable:

•Thecompanyacquireditshypnoticsatellite

imageryapplicationwhenitacquiredKeyhole,the

firmthatdevelopedthe

technology.

•In2005,Googleboughtthepopularphoto-sharing

site,Flickr.

•ThereweremanymapservicesbeforeGoogle

launchedGoogleEarth,butnoneofthemachieved

thesamepopularappeal.

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IntheBeginning59

WhileGoogleisbestknownforbuildingonexisting

technology,thecompanyhaspatentedaround113new

ideasinitsfirsttenyearsofexistence.Formoreonhow

Googledoesit,checkoutthesection

“20Percent

Projects”inthechapter“GoogleCulture.”

LOOKAROUNDYOUFORINSPIRATION

LarryPagesaysthathefindstremendousinspirationin

thesciencealreadyoutthere.Hedemonstratedtoa

groupofstudentsthewayasmall,mouse-likerobotwas

abletoscurryoverobstaclesquicklyandeasilyasit

wentaboutitswork.“Thisisaprettycoolthing.I’ve

neverseenanythingquitelikethisbefore.Anditturns

outthatit’stentimescheaperthanallotherrobotslike

it,”saidPage.

Whatmakestherobotdifferentandmoreeffective

thanothersisthatitdoesn’tuseintelligencetomove

forwardandfinditsway;insteadithasspringsfor

Itjustboundsalongthewaycockroachesdo.Ifithitsan

obstacle,itspringsinadifferentdirection.Someonehas

alreadyinventedthespringingrobot,buttheidea

behinditcanbeappliedelsewhere.

“Thishasgreatimplicationsifyou’rebuildingrobots,

forexample,

”Pagenoted.

“Ifyoufindoneofthese

[ideas]anduseitasafoundationforacompanyoran

inventionorentrepreneurship

you’reinamuchstronger

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GOOGLESPEAKS

businesspositionandthat’sagreatplacetobeifyou’re

startingacompany.”10

HOWSEARCHWORKS

Googlerocks.ItraisesmyperceivedIQbyatleast20points.

Icanpullareferenceorquoteinseconds,andIcanfigureout

whoI’mtalkingtoandwhatthey’reknownfor—akeyfeature

forthoseofuswhoarename-memorychallenged.

—WesBoyd,president,MoveOn.org11

Googleonceclaimedthatpigeonspowereditssearch

results,butthatwasjustanotherAprilFool’sDayjoke.

Itisestimatedthatin2007

Googlewasprocessing

morethan37billionsearchespermonth,compared

with8.5billionbyYahoo!and2.2billionbyMicrosoft.

MostpeoplesearchoutinformationontheInternet,

oftenmultipletimeseachday.Yetfewpeoplecompre-

hendhowsearchreallyworks.

Insimplifiedform,itgoessomethinglikethis:

Step#1:Youenterawordorseriesofwords,andthe

searchengineconnectsyoutothosewordsina

databaseithascreated.Fromtheoutset,Larryand

SergeyaimedatputtingtheentireInternetintoits

database.Thecompanystillstrivestodothat,plus

addingmanyothersourcesofinformation.

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IntheBeginning61

Step#2:Theenginesearches,usingthreemajor

segments:

1.Thecrawl,whichactuallydoesn’tcrawl.Rather,it

broadcastsrequeststothousandsofWebpages

seekingyoursearchwords.Thecrawleralsois

calledaspider.

2.Theindex,amassivedatabasewherethewords

arestoredandfound.

3.Theruntimesystem—alsocalledaqueryprocessor.

Thisstepdeliverssearchresultsbacktothe

questioner.

Thisscenario,however,doesn’texplainexactlyhow

Google’suniquesearchworks.Thatcodeisacompany

tradesecret.ButLarryPage,whocameupwiththe

originalidea,givesussomeclues.

Soonafterarrivingat

Stanford,Pagebeganmeeting

withhisdoctoralprogramadvisor,TerryWinograd,to

discussprojects.“Wesettledonlookingatthelinkstruc-

tureontheWeb,”saidPage,“howtograballthelinks

andanalyzethemanddosomethinginteresting.We

eventuallywoundupwithawaytorankWebpages

basedonthelink,thenrealizedwecouldbuildabetter

searchengine.Andwedidjustthat.”12

TheGooglewebsiteexpandsonPage’sexplanation:

Insteadofrelyingonagroup

ofeditorsorsolelyonthe

frequencywithwhichcertaintermsappear,Google

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GOOGLESPEAKS

rankseverywebpageusinga

breakthroughtechnique

calledPageRank.PageRankevaluatesallofthesites

linkingtoawebpageandassignsthemavalue,based

inpartonthesiteslinkingtothem.Byanalyzingthefull

structureoftheweb,Googleisabletodeterminewhich

siteshavebeen“voted”thebestsourcesofinformation

bythosemostinterestedintheinformationtheyoffer.13

LarrynamedPageRank,theprogramthatelevated

Googleoverothersearchmethods,afterhimself.He

startedwithaconceptthathewasfamiliarwith,one

usedinacademicresearch.Thatis,apublication

importanceisdeterminedbythenumberofcitationsit

receivesinothersignificantjournals.Peerreviewdeter-

minesapublication’srelevanceandreliability.

Again,Google’sTechnologypageexplainshowthe

processgetsmorecomplicated:

PageRankreliesontheuniquelydemocraticnatureof

thewebbyusingitsvastlinkstructureasanindicator

ofanindividualpage’svalue.Inessence,Googleinter-

pretsalinkfrompageAtopageBasavote,bypageA,

forpageB.ButGooglelooksatconsiderablymore

thanthesheervolumeofvotes,orlinksthepage

receives.Forexample,italso

analyzesthepagethat

caststhevote.Votescastbypagesthatarethemselves

“important”weighmoreheavilyandhelptomake

otherpages“important.”Usingtheseandotherfactors,

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IntheBeginning63

Googleprovidesitsviewsonthepages

’relative

importance.14

Andthat

’sstillonlypartofthe

protocol.It

’salmost

impossibletofathom,butPageRankconsidersmore

than500variablesand3billiontermsandstillmanages

todeliverresultsinfractionsofasecond.Yettherealso

isacertainsimplicitytothesearchprocess.

“Bytheway,

”observedStanfordProfessorRajeev

Motwani,anearlyGoogleinvestor,

“youmight

havenoticedthatthejobof

thesearchengineisnothing

morethanwhatahumblelibrariandoesallthetime

andmoreintelligently!However,theautomationin

thesoftwarecomestoourrescueincopingwiththe

exponentialriseininformation.”15

PLATFORMPOWER

Whenpeopleinthecomputer/Internetworldusethe

platform,ithasmultiplelevelsofmeaning.At

timestheyappeartobetalkingabouthardware.Other

times,it’ssoftware,andthenitcanbetheInternetitself

oraparticularwebsiteorsearchengine.Itcaninfact

refertoanyoneoftheseelements.

“Platformsaretheplayingfield,”explainsJohn

McDougall,aChicago-

basedcomputerexpert:

Bigplatformsaregenerallyindustry

-wideandwith

anagreeduponsetofstandardswhicharedeveloped

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GOOGLESPEAKS

andcontrolledbyastandardsgroup.Inthecase

oftheInternet,thatgroupistheWorldWideWeb

Consortium.Smallerplatformsarealsoplayingfields,

butmorespecificintheirrangeorscope.Whocontrols

thestandardsorrulesforthese?Theplayingfield

determineswhocanuseorwhocanplaywiththe

platform.16

Aplatformrepresentsaninfrastructureofsomekind.It

isaframeworkonwhichtobuildaneconomy,asociety,

oracorporation.So,intheworldoftechnology,aplat-

formisanoperatingsystem,togetherwiththehardware

onwhichitruns.

Google,YouTube,Facebook,Flickr,andsimilarplat-

formshavefourmainpowersthatconstitutegenuine

andvaluableauthority:

Thepowertosettherulesofbehavior

Thepowertopreserveandexploituser-generated

content

Thepowertopromoteandfeaturepreferred

content

Thepowertodefinethetypesofinteractionavail-

abletousers

ProfessorJoelWest,whoteachesinthecomputer

programatSanJoseState,saysallofthisistrue,but

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IntheBeginning65

thosewhooperateplatformsneedpeoplewhoprovide

third-partyproductsandservices,anecosystemthat

helpstheplatformoperate.Oftenthisecosystem

includescompaniesthatarecompetitiveinsomearea.

Google’sAndroidsoftware,forexample,competeswith

Apple’siPhone,buttheycooperateonotherprojects

whenbothcanprofitfromthat.Expertsinthefieldhave

dubbedthissurvivaltoolcoopetition.

Googleisthoughttohavethemostpowerfuland

extensivecomputingnetwork

—bothinitsphysical

equipmentandinitsdatabase—inexistence.

“Ifyouprintedouttheindex,itwouldbe70miles

highrightnow.Wehaveallthiscomputation,

”said

Page.“Wehaveabout6,000

computers,sowehavealot

ofresourcesavailable.Wehaveenoughspacetostore

like100copiesofthewholeWeb.Soyouhaveareally

interestingsortofconfluenceofalotofdifferentthings:

alotofcomputation,alotofdatathatdidn’tusedtobe

available.”17

Googleisstrivingtomaximizeitsplatformpowerin

everywayitcan.Thisisoneofthereasonsthecompany

hasbranchedintomobile-phonetechnology.Theper-

sonalcomputerhasbeenthedominantplatformfor

accessingtheInternetaroundtheworld.However,in

manyplaces,Internetaccessbymobilephoneisout-

pacingwirelessaccessfromacomputer.Thereisan

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GOOGLESPEAKS

extensivebaseofmobilephonesglobally,andwireless

networksareexpandingdaily.

OPENPLATFORM

WhileGooglewavestheflagforopenplatforms,the

detailsoftheirownplatforms

oftenarecarefully

guardedsecrets.

Ata2008Web2.0conference,Google’svicepresi-

dentofengineering,VicGundotra,arguedthatcontrol

oftheplatformbyasingleproviderbydefinitionslows

downinnovation.ThiswasaveiledreferencetoGun-

dotra’sformeremployer,Microsoft.Microsoftexecutive

DavidTreadwellwasonthesamepanel.Hechallenged

Googletoreleaseintothecommunitythedrivingtech-

nologyofitsbusiness,its

searchengine,andadplat-

forms.Gundotrashotbackthathewasn’tadvocating

totalcontrol,andthatabalancecouldbestruckbetween

businessinterestsandthebroaderinterestsofthe

community.18

SanJoseState’sJoelWestsaysthatthetermopenhas

disintegratedintoamarketingterm,andGoogleisdis-

ingenuouswhenitimpliesitisanopenplatform.“Every

platformisopentosomedegreeandclosedtosome

degree.Thisisnecessaryif

thecompanyistocontinue

asabusiness.Googlemaybemoreopenthanmost

companies.”ButWestsaysthatfewofitsproductsare

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IntheBeginning67

fullyopen.“Androidisnotopen.Tosaysoismislead-

ing.Onlyasmallnumberof(chosen)peoplehave

accesstoitscode.

”GoogleBooks,hesays,isclosed,

becausenootherInternetprovidercanusethebooks.

Evenreadershavelimitedaccess,whichiscontrolled

entirelybyGoogle.19

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GoogleBy

AnyOtherName

PartofGoogle’sinstant

attractionisitsquirkyname.It’s

funtosay“Googleit.”It’seasytoremember.Ithasa

ringtoit.Somehow,itisn’tasentertainingtosay“Yahoo!

it”or“MSNit,”oreven“Gotoit.”Googleisoneofthosewordsthatisinherentlyamusing,andinfact,many

yearsagotherewasacartooncharacternamedBarney

Google.Thecomicstripinspiredthezany1923song,

“BarneyGoogle,withtheGoo-Goo-GooglyEyes.”

ABLESSEDBLUNDER

ItwasLarryandSergey

’sideatonamethecompany

googol—themathematicaltermforthenumber1fol-

lowedby100zeros.MiltonSirotta,anephewofthegreat

mathematicianEdwardKasner,coinedtheword.Itwas

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GoogleByAnyOtherName69

popularizedinabookKasnerco-authored,Mathematics

andtheImagination.Thefoundersfeltthatthename

googolwouldreflectGoogle’sambitiousgoaloforganiz-

ingandmakingavailablealloftheworld’sinformation.

Fortunately,someonemisspelled

googol,andthe

bungledversion,Google,tookhold.Itwasjustaswell.

Asitturnsout,thetermgoogolwasn’tavailablefora

websitename,anyway.

FROMNOUNTOVERB

Google’sfounderswereworriedfromtheoutsetthat

theywouldlosecontroloftheircompanyname.Inthe

prospectustheywrotethat“thereisariskthattheword

‘Google’couldbecomeso

commonlyusedthatitbecomes

synonymouswiththeword‘search.’Ifthishappens,we

couldloseprotectionforthistrademark,whichcould

resultinotherpeopleusingtheword‘Google’toreferto

theirownproducts,thus

diminishingourbrand.”

Itdidhappen.Oddly,thefirstrecordeduseofGoogle

asaverbwasinanearlye-mailthatLarryPagesent

tofriendsandfellowstudents.Hetoldthemto“Keep

Googling.”Withbreathtakingspeed,thenoun

Google

becameaverbaseveryonewenttotheircomputersto

Googleeveryoneelse,oreventoGooglethemselves.

Googletheverbwasaddedtothe

OxfordEnglish

Dictionaryin2006,butit

wasn’tcauseforcelebrationat

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GOOGLESPEAKS

thecompany.Asexpected,executivesatGooglegrowled

overthepossibilityofbranddilutionandotherdark

implications.

PLAYINGWITHTHENAME

OneWebjokestersurmisedthatGoogleisjustaclever

playonwords—andthenamereallymeans“Google.”It

couldverywellworkthatway.Peoplelovetoplaywith

thename.Thesearchenginenamespawnedawhole

listofderivativewords.

AsGoogle,Microsoft,andYahoo!lockedhornsina

convolutedbusinessdeal,Internetwagstalkedabout

apossiblenewcompany,Microhoogle.

RecentheadlinesintheUnitedKingdomdeclared

thatthecountrysufferedfromdiscomgooglation,aterm

describinghowfrustratedpeoplefeltwhentheycouldn’t

accesstheInternet.Thenthereis:

Googly—usedwithinthecompanytodescribeanything

thatiscompatiblewithGoogleculture

Googleplex—companyheadquartersinMountainView,

California

Googlers—thosewhoworkatGoogle

Googlian—anythingderivedfromaGoogleconcept

Googlicious—justpeachy—wonderfulintheGoogleway

Andnodoubtthereare

oodlesofGooglestocome.

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THEGOOGLELOGO

Google’spublicimageisfurtherenhancedbythe

delightfullysimplecrayon-coloredlogoanditsplace-

mentonitssparehomepage.ThelogomakesGoogle

seemapproachableandfriendly.

Reminiscentofthelettersonchildren’sbuildingblocks,

itquicklyevolvedintooneoftheworld’smostrecogniza-

blecorporateinsignias.Google’slogorecognitionisright

uptherewithNike’sswoosh,NBC’speacock,andCoca

Cola’sred-and-whitescriptedname.

BrinandPageweretoyingwithlogoideas,struggling

tocomeupwithasymbolthatexpressedtheemerging

Googleculture.TheyaskedRuthKedar,agraphic

designerandassistantprofessoratStanford,toproduce

someprototypes.“IhadnoideaatthetimethatGoogle

wouldbecomeasubiquitous

asitistoday,orthattheir

successwouldbeofsuchmagnitude,”Kedarsays.1

Kedar,whowasborninBrazilbutgrewupandwas

educatedinIsrael,wasimpressedthattheyoungmen

withachancystartupinsistedonpayingforthelogo.

SheonlywishesshehadtakenpaymentinGoogle

shares.

Thelogoasweknowittodaygivestheimpression

thatitwasaquick-and-easysketch-up,whereasinfact

itwentthroughmanychangesinthedesign

process.

KedarbeganwithafirsttrythatSergeyhadcreatedwith

freedesignsoftware.

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GOOGLESPEAKS

“Someonewhoseesthelogoforthefirsttimedoesn’t

necessarilyneedtoabsorballthelayersandconsidera-

tionsbehindeverydecision,”saidKedar.“It’sbetterfor

himtodiscoversomethingneweverytime.”2

Kedarsaysthelogo,boththelettersandcolors,is

intendedtoconveythemessagethatInternetsearch

withGooglewillbesimple,strong,andfun.She’snot

concernedaboutthefrequentcommentthatanychild

couldhavecreatedtheGooglelogo.Thecomment,she

believes,speakstothe

effectivenessofthedesign.“It

somewhatamusesmetoturnonthecomputerandlook

atthelogoIdesigned,”saidKedar.“Butitalsofillsme

withpride.WhenyousayGoogletopeopletoday,they

immediatelyseethecolorfullogo.”3

SheaddedthattheGoogledoodle,theenhancements

drawnbyDennisHwang,don’tbotherheronebit.They

playwiththelogoina“veryniceway.”

THEGOOGLEDOODLE

A2008surveyindicatedthatmorethan75percent

ofBritonssaidtheycouldn’tlivewithouttheInternet,

and50percentclaimedthattheInternetwasmore

importantthanreligion.4TheQueenofEnglandherself

hasbecomeacomputeruserandInternetsurfer,soit

wasnaturalthatshewould

wanttovisittheGoogle

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officenotfarfromBuckinghamPalace.Onthemorning

ofhervisit,Googleusersin

theUnitedKingdomlogged

ontoaspeciallogo,onedisplayingtheQueen’scheery

ItwasintheUKthatGooglehelditsfirstnationwide

Doodle4Googlecontest,usingthetheme“MyBritain.”

Thewinnerwas13-year-oldKatherineChisnallofTrow-

bridge,whosedoodlewasdisplayedonthenational

Googlewebsite,butnotonthesamedayQueenElizabeth

IIwassohonored.Chisnall

’sdesigndisplayedthe

UnionJackcolorsandfivewondersofBritain,including

Shakespeareandacastle.ShewonatriptoCaliforniato

visitGoogleplexandworkwithHwang.

Ithasbecomeatraditiontotweakthelogoforspecial

occasions.SusanWojcickifirstcameupwiththeideaof

“doodles,”orplayingwiththeemblemforholidaysor

notableevents.Heroriginaldoodlewasanalienland-

ingonGoogle.NowHwangprovidesValentinelogos,

Christmaslogos,andspontaneoussurpriselogos.For

oneHalloween,itwasadark

-and-stormyGoogle,with

aleeringjack-o-lanternforoneoftheOsandadrippingcandlefortheL.Duringthe2008Olympics,thesecond

OinGooglewasreplacedbyaseriesofcartoonath-

letes,includingarunner,abicyclist,andadiver.The

Olympicdiverwas

appropriate,sinceSergeyBrinhas

dabbledinhighdiving.

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GOOGLESPEAKS

GOOGLEZEITGEIST

Writersofthepasthadabsinthe,whiskey,orheroin.Ihave

Google.Igothereintendingtostayfiveminutesandnextthing

Iknow,sevenhourshavepassed,I’vewritten43words,andall

IhavetoshowforitisthatIknowthetitlesofevery

episodeof

NannyandtheProfessor.

—MichaelChabon,author,

TheAmazingAdventuresofKavalier&Clay

OnedaywhenthecartooncharacterDrabblecongratu-

latedhisbossforbeingthefirsthumanbeingeverto

failtheTuringtest,

“Turingtest

”becamethemost

searchedwordonGoogle.Thiswasatestamenttothe

popularityofDrabbleandacluetotheZeitgeistof

newspaperreaders.

Sohereweareatoneofthemostentertainingand

evenusefulunintendedconsequencesofagreatsearch

engine—Zeitgeist.Googlemakesitpossibletogauge

whatagreatmanypeoplearethinkingaboutandpossi-

blyconsideringdoingatany

onetime.Thesenseof

anonymityoftheInternetengendersanastounding

leveloffrankness.

ThewordZeitgeistcomesfromtheGermanlanguage,

buttracesitsrootstoLatin.Itisatranslationofgenius

seculi.GeniusistheLatin

wordfor“guardianspirit,”andseculimeans“ofthecentury.”Thewordhascometo

describetheintellectualandculturalclimateofanera.

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Inthepast,writerssuchasF.ScottFitzgeraldand

artistslikeSalvadorDalihavecapturedZeitgeist,but

neverbeforehastherebeensuchanaccurate,to-the-

momentscientificmeasureastheonecreatedby

Google.

GoogleZeitgeist,inseveralforms,tracksallthe

searchesdoneonthewebsiteandranksthembyfre-

quencyofsearch.HotTrends,introducedin2007,lists

the100mostactivequeriesatanymoment.Thereisa

monthlylistandagrande

annuallist.

Attimes,ourZeitgeistseemsshallow,withsearchers

trackingcelebrities,celebrityrumors,andquestions

suchas“WhoisBuckethead?”Thereareindicationsthat

themajorityofsearchersareyoung,sincenameslike

singerBritneySpearsand

HighSchoolMusicalstar

VanessaHudgensfigureprominently.

Evenso,somepracticalsearchersaskhowtocro-

chet,howtoflirt,orwhendaylightsavingtimebegins.

Enigmatically,“howto

levitate”showsup,too.

In2008,Republicanvicepresidentialcandidateand

AlaskaGovernorSarahPalinheadedtheZeitgeistlist

worldwide.NextrankedwastheBeijingOlympics,with

thepresidentialcandidateBarackObamacomingin

sixth.

Despitetheflimsyandtransitorynatureofsearch

queries,authorJohnBattellecallsZeitgeistthedata-

baseofintentions,aremarkableanthropologicaldevice

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GOOGLESPEAKS

ofourtimes.Google’sownwebsitedeclares,“Whatyou

seehereisacumulativesnapshotofinterestingqueries

peopleareasking,overtime,

withincountrydomains

andsomeonGoogle.com—thatperhapsrevealsabitof

thehumancondition.”AnyonecanlogontoGoogle.com

andcheckonwhat’supalmostanywhere.

OnelessonfromobservingZeitgeististhatGoogle

doesnotsettaste;ratheritmeasuresit.Ittellsusthe

silly,sad,andsometimesshockingtruthaboutourselves

andwhatweactuallydoontheInternetasitresponds

toourqueriesandtranslatesthatintorelevantsearch

results.

Googleregularlyholdsinvitation-onlyGoogleZeitgeist

Conferencesaroundtheworldsothatthoughtleaders

candiscussandponderthespiritofthetimes.David

Cameron,controversialheadoftheBritishConserva-

tiveParty,waskeynote

speakeratboththe2006confer-

enceinEuropeandthe2007conferenceinSan

Francisco.CamerondescribedtheInternetrevolution,

andGoogle’srole,asthenextstageofsocietaldevelop-

ment,beginningwithfeudalism,andthenfromcentral-

izedstatebureaucracytooneofenormousindividual

influenceandcontrol.Cameronwelcomedthestruggle

betweenindustryleadersandgovernmentstodefine

anddirecttherevolution,quotingEdmundBurkefrom

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200yearsago:“Thereciprocalstruggleofdiscordant

powerswilldrawouttheharmonyoftheuniverse.”5

DespiteGoogle

’srevelations,thereremainssome-

thingmysteriousandmagicalaboutZeitgeist.Eventhe

mostcreativepeopledon’tknowwhereitcomesfrom.

GeorgeBernardShawoncesaid,“WhatIsaytodayeve-

rybodywillsaytomorrow,thoughtheywillnotremem-

berwhoputitintotheirheads.Indeedtheywillberight

forIneverrememberwhoputsthingsintomyhead,it

istheZeitgeist.”

(Note:Bucketheadisamutantguitarvirtuoso,American

BrianCarroll,whowearsawhitebucketonhisheadwhile

playingmusic.)

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ACompany

IsBorn

Sergeysaysthatluckplayedabigpartintheearlysuc-

cessofthecompany:“Webecameprofitablejustasthe

market(forInternetstocks)tanked.Ifwehadstarted

sixmonthslater,itmight

havebeenadifferentstory.”1

RajeevMotwani,theStanfordprofessorwhoadvised

graduatestudentsLarryandSergey,remembershowit

allhappened.TheWorldWideWeb,hesaid,wascom-

ingintoitsown:

SergeyBrinandLarryPagewererunningasearch

engineoutofStanford.These21-year-oldswouldcome

inandmakedemandsonme

—weneedmoredisk

spacebecausewe’recrawlingtheWebandit’sgetting

bigger,weneedtobuymoredisks....I’dgivethem

moremoneyandthey’dgobuymoredisks.Atsome

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ACompanyIsBorn79

pointtheseguyssaid,wewanttodoacompany.

Everybodysaid,youmustbeoutofyourminds.There

arelike37searchenginesoutthereandwhatareyou

guysgoingtodo?Howareyougoingtoraisemoney,

howwillyoubuildacompanyandthesetwoguys

said,we’lljustdoitandtheywentoffanddidit.

ThenextthingMotwaniknew,thepairhadbuiltaglo-

balenterprise.“It’sjustamazing,justfeelslikeapartof

alittlebitofhistoryandIcontributedalittlebittothat

history.NowIhavebecomeastart-upjunkie.”2

Atfirst,theytriedandfailedtoselltheirtechnology.

Atthatpoint,PageandBringaveupandreturnedto

theirresearch.Theyknewtherewasstilllifeintheidea

andfollowedDavidFilo

’sadvicetobegintheirown

company.

YAHOO!DREWTHEMAP

TheparallelsbetweenYahoo!andGooglearealmost

spooky.TwoboredPh.D.candidatesatStanford,looking

forawaytowinafantasybasketballleague,cameup

withtheideaforYahoo!.JerryYangandDavidFilowon

thesportspool,andnotlongafterwardrealizedthey

hadcreatedsomethingwitheconomicpotential.They

tookawhimsicalandfun

approachtobusiness,andin

namingtheircompanytheystartedwiththeInternet

jargonfor“yetanother,”YA.Theycameupwiththerest

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GOOGLESPEAKS

ofit:YetAnotherHierarchicalOfficiousOracle.Yahoo!

wasborn.

•Yahoo!’smaingoalwastohelptheirStanford

buddieslocateintriguingwebsites.

•Thesystemuses“content-based”search.

•Yahoo!earnsitsmoneyfromadvertising.

•Afterawhile,the20-somethingentrepreneurshired

a“grown-up”businessman,TimKoogle,tohelprun

anddevelopthebusiness.

Naturally,hewasaStan-

fordgraduate.

•Thecompanywentthroughastageofhypergrowth

andsuccess,launchinganIPOwithamultibillion-

dollarmarketcapitalization.

“Wewereunique,”saidYang.“Wewerethefirstin

businesstobuildacredible,sustainable,andlikeable

brand.IfyoubelievetheInternetisthenextbigmedium,

andifyourealizeeverymediumhashadabrandassoci-

atedwithitlikeCNNwith

cable,thenit’sconceivablethat

Yahoo!willbecomeoneofthosebrands”.3

Yahoo!wasformedaboutfiveyearsbeforeGoogle

camealong,andinmanyways,therelationshipbetween

thetwocompaniesgoesway

backandwasclose.Google

pitchedYahoo!onbuyingthesearchengine,butwere

sentawaywithnothingmorethansoundcounsel.Yahoo!

soonchoseGoogleasitsdefaultsearchengine,anda

daylater,Yahoo!purchasedeGroupsfor

$413million,

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ACompanyIsBorn81

acompanythatLarry

’sbrother,CarlPage,helpedto

found.Forawhile,startingin

June2000,Google’sand

Yahoo!’spathswerelinked.Providingsearchresultsfor

Yahoo!andotherwebsitesgotGoogleofftoastrongstart.

Beforelong,Googlebegantolooklikeacompetitor,and

eventuallyYahoo!droppedGoogleanddevelopedits

searchtechnology.

Sadly,afteraterrificallysuccessfulrun,Yahoo!fell

victimtoahorrendousbusinessblunder.Microsoft

madeabigofferforthecompanybutdroppeditwhenit

consideredYahoo!’scounteroffertoohigh.TheGoogle

founderswantedtohelpYahoo!remainindependentand

struckanadvertisingarrangement.However,Google’s

helpturnedouttobenohelpatall.Readmoreabout

thatinthesectionentitled“Google,Microsoft,andthe

InternetCivilWar,”inthechapter“TheDominantPower

intheIndustry?”

THEREQUISITEGARAGE

Thestoryofahigh-techcompanystartingina

Califor-

niagarageisaclichéforsure.Perhapsitisarequired

steponthepathtosuccess.Asfarbackas1938,Stan-

fordgraduatesBillHewlettandDavePackardbegan

theircompanyinaPaloAltogarage.SteveJobsand

SteveWozniakbuilttheirfirstApplecomputerina

garageinthenearbycommunityofLosAltos.

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GOOGLESPEAKS

WhenGooglehadtomoveoutofGates360,their

Stanfordgraduateschooloffice,andLarry

’sStanford

dormroom,PageandBrinrentedasparebedroomand

garagespaceinthehomeofSergey’sgirlfriend’ssister,

SusanWojcicki.Wojcickiinsistedthattheyenterthe

housethroughthegarage.

“It’saveryhumblehouse,lessthan2,000squarefeet,”

Wojcickisaidof232SantaMargaritaAvenue.4Wojcicki

boughttheMenloParkresidenceshortlyafter

earning

herMBAin1998.Thepurchasepricewasabout$600,000.

Sherentedpartofittohelpcoverthemortgage.The

four-bedroomranch-stylehouseonatree-linedstreet

provedconvenientfortheyoungentrepreneurs,since

itcamewithawasher,dryer,hottub,andparking

spaces.

JusteightyearsafteritsbeginningonSantaMarga-

ritaAvenue,Googlepurchasedthenow-historicprop-

erty.Googledidnotrevealthepriceitpaid,butthe

valueofthetrulymodesthouseby2006wasestimated

at$1.2million.

Aniceprofitonrealestateisn’tallthatSusanWojcicki

gotfrombeingthelandlady.Shetookanearlyjobatthe

companyandnowisoneofGoogle’shighest-ranking

executives.

In1999,shebeganasGoogle’sfirstmarketingpro-

fessional.Backthen,shewasresponsibleforawide

rangeofactivities,includingestablishingthecorporate

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ACompanyIsBorn83

identityandcreatingsomeofthefirstholidaylogos.She

alsomanagedthelicensingofWebsearch,sitesearch,

andenterprisetoGoogle

’sfirstcustomers,andwas

responsiblefortheinitialdevelopmentofGoogle

Search,BookSearch,andVideoSearch.ShenowisGoo-

gle’svicepresidentofproductmanagement,responsible

forGoogle

’sadvertising,monetization,andmeasure

mentplatformsproducts,includingAdWords,AdSense,

andGoogleAnalytics.

SeveralofSusan’sfamilymembershaveworkedat

Google,includingherhusband.DennisTroperisan

operationalexecutive.Eventually,Susanalsobecame

SergeyBrin’ssister-in-law.

Inlessthanayear,Googleoutgrewthegarage.With

eightemployees,itmovedintorealofficespaceonUni-

versityAvenueinPaloAlto.

THEVENTURECAPITALISTS

StanfordprofessorDavidR.CheritonjoinedYahoo!

DavidFiloinurgingPageandBrintoconsiderbecoming

entrepreneurs,butCheritonwentonestepfurther.He

hookedtheGoogleboysupwithaninvestorheknew.

LateonenightinAugust1998,Cheritone-mailedAndy

Bechtolsheim,afounderofSunMicrosystemsandone

ofSiliconValley

’smostsuccessfulventurecapitalists.

Bechtolsheimimmediatelyresponded,suggestingthey

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GOOGLESPEAKS

meetthenextmorningateighto

’clock.Hepassed

Cheriton’shomeonhiswaytoworkeachday.

Cheriton,aCanadian

-bornand

-educatedcomputer

scienceprofessor,hasbecomeabillionaireasaresultof

hisinvestmentsintechnologycompanies.Cheriton

co-foundedGraniteSystemswithAndyBechtolsheim,a

companythatdevelopedgigabitEthernetproducts.Cisco

SystemsacquiredGranitein1996.Cheritonlaterbecame

co-founderofBechtolsheim

’s2001startupcompany,

Kealia,whichwasacquiredbySunMicrosystemsin2004.

BythetimehemetPageandBrin,Bechtolsheimhad

alotofexperienceinstartingcompanies.Inadditionto

hisworkwithCheriton,hewasaco

-founderofSun

Microsystems.Heknewhiswayaroundsoftware,the

Internet,andSiliconValley.Lounginginthemorning

sun,BechtolsheimwatchedSergeyandLarry

’sdemo

forGoogleandimmediatelywrotea$100,000checkto

helplaunchthecompany.

BrinandPagecelebratedtheaffirmationoftheir

workwithbreakfastat

BurgerKing.“Wethoughtwe

should[eat]somethingthattastedreallygood,thoughit

wasreallyunhealthy,”Pagesaid.“Anditwascheap.It

seemedliketherightcombinationofwaystocelebrate

thefunding.”5

Buttherewasahitch.Bechtolsheim

’scheckwas

madeouttoGoogleInc.,acompanythatdidnotyet

legallyexist.ThechecklayinLarry’sdeskdrawerfor

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ACompanyIsBorn85

severalweeksasheandSergeysetupacorporation

undertheGooglename.Theyalsosoughtotherinves-

torsamongfamily,friends,andacquaintances.Ulti-

mately,theycobbledtogetherabankrollof$1million.

StagetwoofGoogle

’sfinancialevolutioncameon

June7,1999—again,rightinthemiddleoftheSilicon

Valleybubble

-burst.Googlegotitssecondbigpush

offundingfromanunusual

partnershipoftwoleading

venturecapitalfirms,SequoiaCapitalandKleiner

PerkinsCaufield&Byers.Usuallythesetwocompanies

arefiercecompetitors,butinGoogle

’scase,itwas

different.Their

representatives,JohnDoerrandMichael

Moritz,bothtookseatsontheboardofdirectors,

expertisethathelpedLarryandSergeymovethecom-

panyrapidlyintherightdirection.Amongotherthings,

DoerrhelpedSergeyand

LarryfindtheirCEO,Eric

Schmidt.

DoerrhadanearlycareerwithIntelandmovedinto

venturecapitalin1980.Hehasdirectedessentialfund-

ingtosomeofthemostsuccessfulcomputerandInter-

netcompaniesanywhere,includingCompaq,Symantec,

SunMicrosystems,Amazon,andIntuit.

Doerrsaysthatseveralfactorsattractedhimto

Google.“YoucouldseeGooglewasgrowingrapidly,”he

said.Additionally,therewastechnicalexcellence;Larry

andSergeywantedtoassembleagoodmanagement

team.Theyweregoingafteraverylargemarket,and

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GOOGLESPEAKS

“theyhadasenseofurgencyaboutthem.”Andonepar-

ticularcharacteristicthatDoerrliked:“Theywerenerdy

whitemales,dropoutswithnosociallife.”6Again,Larry

andSergeywentofftoBurgerKingtocelebrate.

Onlyayearlater,Googlegotitsbreakwhenoneof

theirprofessorsandanotherSiliconValleyventurecapi-

talistgavethemstartupmoney.Thatsameyear,articles

praisingtheinfantGoogle

searchengineappearedin

USATodayandLeMonde.Soon,PCmagazinenamedGoogleoneofitsTop100WebSitesandSearchEngines.

WhileDoerrisoneofthemostinfluentialdenizensof

SiliconValley,healsohasinvestedinfailures.

“John

Doerrthrowsbigdartsatdistanttargets,

”saidJerry

Kaplan,aSiliconValleyentrepreneurwhosestartupsin

theearly1990s,GoCorporationandOnsale.com,were

flopsbackedbyKleinerthroughDoerr.“Mostmiss,but

whentheyhit,it’sspectacular.”7

TheGoogleinvestmentwasworththerisk.KleinerPer-

kinsandSequoiaCapital’s$25milliongotthem20percent

ofGooglebackin1999—asofNovember2008,Google’s

marketcapitalizationstoodatabout$108billion.

THEELUSIVEBUSINESSPLAN

TheGoogleguysinitiallyhadaroughtimecomingup

withaworkablebusiness

plan.In1999,thecompany

wasburningthroughitsventurecapitalreserveswithout

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ACompanyIsBorn87

aclearstrategytogeneraterevenues.Itwasn

’tuntil

early2001thattheycameupwiththeconceptthat

wouldwork.

Asmuchastheydislikedtheidea,LarryandSergey

realizedthatadvertisingwasanecessarypartoftheir

businessmodel.Eventually,

Google

’smanagement

understoodithadtwocorebusinesses,searchand

advertising.Searchoriginallywasatechnology,nota

business,butbyservicingothersites,suchasYahoo!

andAOL,itconvertedtoa

business.Searchhasgradu-

allymorphedintoaportalaswell,awebsitefromwhich

userscanestablishahomepage,Gmail,andlegionsof

otherconveniencesthatconnectthemtotheInternet

butalsokeepthemwithinGoogle.Advertising,everybit

ascomplexandimportantassearch,providesabout99

percentofGoogle’sincome.

MostGooglersnowseetheorganizationasa

technology-drivenmediacompany.Googleisn’tsodif-

ferentfromamagazine,newspaper,ortelevisionsta-

tion.Contentorprogramming,orinGoogle

’scase,

search,isthelure.Advertisingconnectedtotheservice

providestheincome.Manygreatfortunes,including

thoseofTedTurner,MichaelBloomberg,andSteve

Forbes,

havebeenbuiltonadvertising.

Nevertheless,astimewenton,Google

’sbusiness

planseemedmoreandmoremysterious,evenchaotic.

Intel’sAndyGrovehas

applaudedapparentchaosasa

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GOOGLESPEAKS

waytoobscureunderlyingintent,andifthatisGoogle’s

goal,ithastosomeextentsucceeded.

INVESTINGINWILDIDEAS

Googlehastriedtobranchinto,amongotherareas,a

WiFideveloperforcities,amajorinvestorinrenewable

energy,greenvehicles,and,strangestofall,asemi

biotechcompany,23andMe.Itisunderstandablewhen

Googleinvestsinanytechnologythatbroadensitsabil-

itytosellads,anditmaybesmarttoinvestincheaper

electricalenergy,sinceGoogle’sbusinessisso

depen-

dentonhavingareliablepowersource.Genetictesting,

however,doesn

’tseemtohaveanyrelationshipto

Google’scorebusiness.

JanetDriscollMiller,

presidentandCEOofSearch

Mojo,asearch

-enginemarketingcompany,wrote:

“23andMewasco-foundedbyAnneWojcicki,newbride

ofGoogle

’sSergeyBrin,sotheinvestmentislikely

drivenmorebynepotismthanbythedrivetobuild

Google’sbusinessportfolio.”8

TomForemski,whowritesaboutbusinessandculture

inSiliconValley,suggeststhatwhileGoogle’sinvestmentin

suchcompaniesas23andMe

islegal,itmaybeunethical:

InvestorscannotpressureGoogletomakemoneyfrom

thosebusinessgroupsbecausetheirsharescarrymini-

malvotingrights.Google’sfoundersdeliberatelysetup

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ACompanyIsBorn89

twoclassesofshareswhentheylaunchedthepublic

company,sothattheycouldmakedecisionsindependent

ofshareholders(fellowowners)wishes.9

Asitwarneditwouldinthe

IPOprospectus,Googlealso

expendsalotofenergyandresourcesonhigh

productsthatdon

’talwayssurvive.NationalPublic

RadioMarketplacehost,KaiRyssdal,talkedtoFortune

magazine’sAdamLashinskyaboutGoogle

’srisk

failurestrategy:

ADAMLASHINSKY:Yeah,you’vegottaremember,thisisa

companythatwasstartedby

two,20-something-year-

oldsandfromthebeginningtheGooglecofounders

nurturedacultureofbothinnovationontheonehand

andchaosontheotherhand.Theywerejustgonna

hanglooseandplayvolleyballandgorollerblading

andhavemassagesoncampusandmakeniftystuff

up.Well,thatwastremendousonce.Butitisn’tneces-

sarilyaprovenwaytobuildabusiness.

RYSSDAL:Seemstomewhattheyhave,actually,isvery

narrowlycontrolledchaos,whichifyouthinkaboutit

isnowaytorunabillion-dollarbusiness.

LASHINSKY:Well,narrowlycontrolledchaos—orman-

agedchaos,whichiswhattheycallit

—isexactly

whattheyaretryingtodo.Theywanttoencourage

zaniness.Ontheotherhand,theywanttofigureout

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GOOGLESPEAKS

awaytocontrolthezaniness.It’saradicalconcept.

It’ssomethingeverybodywouldliketodo.Youknow,

it’slikework

-lifebalanceinourpersonallivesand

careers.That’swhatthey’retryingtodointheshellof

a$125billionmarket-valuecompany(in2006).

RYSSDAL:Allright,that’sgreat.They’vegotthisculture

whereanythinggoesandyoucanlearnfromyour

mistakes.Doyouevergetfired,though,fromGoogle?

Imean,I’veneverheardof

anybodylosingtheirjob

there.

LASHINSKY:Infact,oneofGoogle’smostseniorexecu-

tivesSherylSanberg,who’savicepresidentandruns

alloftheautomatedadvertisingsystemsthatGoogle

has,toldmeaboutamultimillion-dollarmistakethat

shemade.Andwhensherealizedhermistakeshe

walkedacrossthestreetattheGoogleplexinMoun-

tainViewandshetoldcofounderLarryPageaboutit.

Whatwasinterestingwashisreaction.Hesaid,“Yeah,

weshouldn’thavedonethat.We’llknowbetternext

time.But,oh,bytheway,it’sgoodthatyoumadethis

mistake.I’mglad,”hetoldher,“becauseweneedtobe

thekindofcompanythatiswillingtomakemistakes.

Becauseifwe’renotmakingmistakes,thenwe’renot

takingrisks.Andifwe’renottakingrisks,wewon’t

gettothenextlevel.”10

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GOODIDEASPUTTOGOODUSE

Whilesomeofitscorporateventuresseemofftarget,

manyofGoogle

’scharitableandpublic

-spiritedgood

worksoftenfeedintoitsbusinessneeds.

OnesuchprojectwasGoogle’sstudentbusinessplan

competitioninless

-developedareasoftheworld.In

2007,studentsworkedinteamstocreateaviableInter-

netbusinessplanforUkraine.Theideawastohelp

supportandgrowInternetandonlinebusinessesinthat

country.Thewinningproject,turnedinbytwostudents

fromtheInstituteofInternationalRelations,wascalled

“InteractiveTourGuidearoundUkrainianCities.”

Similarcompetitionshave

beenheldinAfricaand

otherregions.ItisinGoogle’sbestinteresttohavemore

peopleonlineandsurelysurfingtheWebusingGoogle.

Additionally,

Google.org,itsphilanthropicarm,

investsmillionsofdollarsin

projectstodevelopcost-

effectivealternativeenergysources,somethingGoogle

dearlywishesforinordertokeepitsenergy-gulping

serverfarmsrunning.

DEALINGWITHDARKMATTER

Whenthe2008recessionhit,

Googlewatcherswere

shockedtolearnthatthecompanywouldbelayingoff

upto10,000employees,nearlyhalfitsworkforce.

Almostallofthoseatrisktogowerecontractworkers.

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GOOGLESPEAKS

“Thereisnoquestionthenumberofworkersistoo

high,”saidBrin.11

EricSchmidtdescribedthecompany’sreactiontothe

economyasdealingwithdarkmatter.Still,Google

inanexcellentpositiontobenefitfromtheglobaleco-

nomicslumpforseveralreasons:

•Duringsuchtimes,weakercompaniesdisappear,

andthestrong,survivingcompanieseitheracquire

thefailingcompaniesorseizetheirmarketshare.

•Googlehadalargeamountofcashonhand.

•Accordingtosomeexperts,onlineadvertisingmay

notbeasstrongasexpected,butitwillcontinueto

grow.Themarketing

-researchfirmeMarketers

predictedthatInternetadvertisingwouldgrowby

8.9percentin2008,ascomparedwiththeoriginal

predictionof14.5percent.

•Googlecantaketheopportunitytofine-tuneits

productline,cherrypicking

thestrongandpotentially

profitableprojectsanddeletingthoselesslikelytoadd

significantlytothebottomline.Googleimmediately

announcedthatitwoulddropitsLively

-3DAvatars

andRooms,avirtualworld,andSearchMash,an

experimentalsearchengine.

Withastrongrevenuestreamandplentyofroomto

trimdown,Googlecouldemergefromeconomichard

timesstrongerandwiser.

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AVERSIONTOADVERTISING

Whentheyfirststartedout,PageandBrinhada

distasteforusingadvertisingasthefoundationfor

theirbusinessplan.Inan

academicpaperthatthetwo

wrotewhilestillatStanford,theysaidthat“advertising-

fundedsearchengineswillinherentlybebiased

towardtheadvertisersandawayfromtheneedsof

consumers.”12

Itwasseveralyearsbefore

theychangedtheirtune

andacceptedthefactthatadvertisingwastheonlyway

tobecomeaprofitablecommercialenterprise.Once

theyacceptedthenotion,theywentforwardwithwhat

soonbecameanextremelysophisticatedadvertising

plan.TheGoogleguyscametoviewadvertisingasan

importantservicetoconsumers.

“Welookatadsas

commercialinformation,andthatgoesbacktoourcore

missionoforganizingtheworld’sinformation,”explains

OmidKordestani,vicepresidentofGlobalSales.13

Tomaintaintheirsenseofintegrity,advertisingis

alwaysclearlyidentifiedas“sponsoredlinks”atthetop

ofthesearchlisting,andGoogledoesnotacceptpop-up

advertising.

Thesimpletextadsthatappearatthetopandinother

placesinGooglesearchresultsaccountforalmostallof

thecompany’srevenue.Asanindicationofhowlucra-

tiveadvertisingis,in2007Googlehadannualrevenues

of$16.6billion,with$4.2

billionofprofit.

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GOOGLESPEAKS

Ifallgoesaccordingtoexpectation,advertisingreve-

nueswillonlygetbetter.

Americansnowspendanequal

numberofhourseachweekwatchingTVandsurfing

theInternet.YettheInternetcurrentlygetsonlya

smallpercentageoftheadvertisingdollars.Procter&

Gamble,thelargestadvertiserintheUnited

States,has

anadbudgetof$5.2billionayear.Lessthan2percent

ofitsmeasuredadbudgetisspentonline;thevast

majorityisfortelevisionspots.

Yetlargebusinessesmayverywelladvertiseonthe

Internetmoreandmore.Onlineadvertisingisexpected

togrowata19.5percentcompoundannualgrowthrateto

$120billionby2012.Bythen,theInternetisexpected

tohandle19percentofglobaladvertising,compared

withonly10percentin2007.14

Googleadrevenueswillgrowbothorganicallyand

byacquisition.IncompetitionwithYahoo!,Microsoft,

andtheadvertising

-marketinggiantWPP,Google

boughttheonlineadvertisingandmarketingcompany

DoubleClick.DoubleClickclaimstohandleabout12

billiontransactionseachday.

$3.2billionpurchaseofDoubleClicksparked

complaintsthatGooglewas

becomingtoodominantin

theadvertisingindustry.Itwassuchconcernsthat

squelcheda2008cooperativedealbetweenYahoo!and

Google.(ThereismoreontheYahoo!-Googledealin

thesection“TheBattleofYahoo!”inthechapter“The

DominantPowerintheIndustry?”)

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ACompanyIsBorn95

ThatcriticismhasnotslowedGoogle

’sexpansion

intootherformsofadvertising.Ithasmarketedadsfor

newspapers,radio,andothertraditionalmedia.Despite

itsearlydislikeofadvertisingandclaimsthatitsbusi-

nesswaspurelysearch,evenEricSchmidtsincehas

admitted,“Weareintheadvertisingbusiness.”15

ADVERTISINGTHATDELIVERSRESULTS

Mylight-bulbmomentwaswhereIrealizedthatrelevancywas

king.IreallysawitplayoutwithGoogle...itwasabiglearn-

ingcurve.16

—PenryPrice,Google’svicepresidentforadvertising

forNorthAmerica

Theideathatadvertisingsellsbestwhenitispertinent

tosearchresultshelpedLarryandSergeycometoterms

withtheirbusinessmodel,

anditalsodeliveredtheeco-

nomicpayload.Advertiserslikedthehighlytargeted

ads,andsearchersweremorelikelytoclickonanadif

itpertainedtowhatevertheywerethinkingaboutwhen

theytypedwordsintothesearchbox.

“Ithinkthebeautyofthesearchmodelistheonething

weknowisyourintent,”explainedTimArmstrong,senior

vicepresidentforGoogle’sNorthandLatinAmericaadver-

tising.“There’sachancethatwe’regoingtobeabletogive

youtherightinformationattherighttime—therightadto

therightuserattherighttimewiththerightoutcome—

becauseit

’saveryself

-directedformofadvertising.

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GOOGLESPEAKS

Googledoesn’tneedtoknowwhotheenduseristobe

successfulinadvertising.”17

GooglewasnotthefirstSiliconValleycompanytocap-

italizeonthenotionthatrelevancymattered.Google’s

advertisingapproachwasmodeledafterthatusedby

GoTo.com,whichallowedadvertiserstobidtohavea

linktotheirwebsitelistedinthesponsoredareawhenever

someonesearchedforcertainkeywords.Ratherthanhire

GoTotohandleitsadvertising,however,Googlewroteits

ownsoftwareandadaptedtheGoTomodeltoitsownuses.

GoTowasrenamedOverture

andsoldtoYahoo!.

OverturebecameabitterrivalfromwhichGoogleseized

theAOLadvertisingaccount.Yahoo!suedGooglefor

copyrightinfringement,adisputethatwassettledoutof

court.(Formoreinformation,

gotothesection“Law-

suitsEverywhere”inthechapter“GoogleGrowsUp.”)

TWOWAYSTOADVERTISE:ADWORDS

ANDADSENSE

Google’sadvertisingprogramhastwodistinctsegments:

AdWords,forthosewishingtoadvertiseaproductor

service,andAdSense,forwebsiteswishingtogetpaid

fordisplayingads.

Launchedin2000,AdWordsisGoogle

’sflagship

advertisingproductand

primarysourceofrevenue.The

pay-per-clickadvertisingincludestextandbannerads.

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ACompanyIsBorn97

Inthebeginning,advertiserspaidasetmonthlyfeefor

Googletosetupandmanagetheircampaigns.AdWords

soonbecamesomethingquitedifferent—aself-service

portal,ado

-it-yourselftoolthathelpedmyriadsmall

businessesgetnoticed.

Inthissecond-generation

service,advertisersbidboth

onwordsthatshoulddelivertheiradsandonthemaxi-

mumamounttheyarewillingtopayperclick.Whilethe

processisshroudedinmystery,onefeatureclearly

appealstoadvertisers.GoogleusesaVickeryauctionsys-

tem,inwhichwinningbidderspayonlyonecentmore

thansecond

-placebidders.Thisgivesadvertisersthe

couragetobidhigh,knowingthattheywillnotbepenal-

izediftheyarefarabovethemarket.

WhenauserGooglesthebid-uponword,ads,also

called

creativesbyGoogle,areshownas

“sponsored

links”atthetoporontherightsideofthescreen.Ifthe

adisappealingenoughto

inspireasearchertoclickon

it,theadvertiserpaysGoogleforeveryclick.

Thebidpricehelpsgetadstopplacementonweb-

sites,butthatisnottheonlyfactor.Theadcanachieve

toplistingonlyifitappealstoenoughWebsurfers.The

adisassigneda“qualityscore.”Thequalityscoreiscal-

culatedbyhistoricalclick-throughrates,relevanceof

anadvertiser

’sadtextandkeywords,anadvertiser

accounthistory,andotherfactorsGooglefindsrelevant.

ThequalityscorealsohasbeenusedbyGoogletoset

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GOOGLESPEAKS

theminimumbidsforanadvertiser

’skeywords.The

minimumbidwasmeanttofilteroutlow-qualityads,

althoughtherearereportsthatGooglesoonwilldrop

theminimumbid.

“Weliterallybuymillionsof

searchterms,”saidBetsy

Lazar,anadvertisingexecutiveatGeneralMotors,the

nation’sfourthlargestadvertiser.Forexample,“Chevy

Detroit,Chevy,fuel-efficientvehicles.”18

SuitcasedesignerHeys

Internationalbuiltmuchof

itsbusinessonWebadvertisingandhasbeenhighly

successful,thankstoGoogle.“It’shelpedalotofyoung

innovativecompanieslikeourselvesgetworldwide

attentionthatwecouldn’thavegottenifitwas[not]for

searchengineslikeGoogle,”explainedHeysfounder,

EmranSheikh.19

AliceBowe,aBritishgardendesigner,paysGoogleso

thatwhenanyonewithin50milesofherbusinesstypesin

“gardendesign,”hersiteshowsup.“Iknewnothingabout

computers,oranyofthatsortofthing,”sheexplained.

“Butit’sreallyeasy.Youcantypeinasmanydifferentver-

sionsofthead,anditwillautomaticallytrythemout,then

showtheonesthatdobestmoreoften.”20

Google’sTimArmstrongpointsout,“Wehavecus-

tomersthatmanagetheirindividualadcampaigns

everyday,multipletimesadayandimprovethemevery

day,multipletimesaday.”21

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ACompanyIsBorn99

Beyondthatbasicservice,Googlethenextendedthe

ad-linkconceptsothatwebsitesautomaticallydisplay

adslinkedtotheirtext.AdSensetechnologycan

instantlyanalyzethetextofanysiteanddeliverrele-

vantadvertising.

Web-siteownersusetheAdSenseprogramtoearn

moneyfromtext,image,andmorerecently,video

advertisementsontheirwebsites.Formanywebsites,

AdSenseistheirmainsourceoffinancialsupport.The

advertisementsareadministeredbyGoogleandgener-

aterevenueoneitheraper

-clickorper

-impression

basis.Theprogramhasbeen

agodsendforsmallweb-

sitesthatdon’thavetheresourcesforhiringasalesstaff

anddevelopingadvertisingsalesprograms.

AcompaniontotheregularAdSenseprogram,

AdSenseforSearchallowstheplacementoftheGoogle

searchboxonwebsites.WhenausersearchestheInter-

netorawebsiteusingthesearchbox,Googlesharesany

advertisingrevenueitmakesfromthosesearcheswith

thewebsiteowner.However,thepublisherispaidonlyif

thesearcherclicksonanadonhispage.

Google’sadvertisingsystemispopular,butitisn

perfect.Clickfraudhasbecomeacommonpractice,a

subjectthatisexploredinsectionsahead.

AdWordshascomeunderfireforallowingdvertisersto

bidontrademarkedkeywords.In2004,Googlestarted

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GOOGLESPEAKS

allowingadvertiserstobidonawidevarietyofsearchterms

intheUnitedStatesandCanada,includingthetrademarks

oftheircompetitors,andinMay2008expandedthispolicy

totheUnitedKingdomandIreland.Advertisersare

restrictedfromusingothercompanies’trademarksintheir

advertisementtextifthetrademarkhasbeenregistered

withGoogle

’sAdvertisingLegalSupportteam.Google

requirescertificationtorun

regulatedkeywords,suchas

thoserelatedtopharmaceuticals,andsomekeywords,such

asthoserelatedtogamblingandhacking,arenotallowed

atall.Theserestrictionsmayvarybylocation.

SinceJune2007,GooglehasbannedAdWords’ads

forstudentessaywritingservices,amovewelcomedby

universityprofessors.

EXTENDINGTHEGOOGLEREACH

Googlehasbeenhighlyexperimentalwhenexploring

thefieldofadvertising.ItranatestintheChicagoSun

Times,sellingboxadsfornewspapers.Theprogram

utilized“remnantspace,”unsoldspacewherethepaper

otherwisewouldrunhouseads.

Google’sYouTubeisahugesuccesswithusers,but,

sofar,Googlehasnotfoundawaytomakemoneyfrom

thesite.Videoadvertisingcouldbetheanswer.Evenas

itwasengagedinalawsuitwithViacom,Googlestruck

adealtotestinsertingadsintovideoclipsofViacom

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ACompanyIsBorn101

programs.Italsowillrunadvertisingalongwithsome

ofCBS’sprimetimeshowsandsoapoperas.

Onlinevideogamers,ofwhomthereareabout200

million,maysoonfindlotsofcommercialspotsontheir

favoritevideogames.

THESCIENCEOFADVERTISING

Googlecontinuestodevelopfeaturesthathelpadvertis-

ersanalyzeandunderstandtheirtargetaudiences,such

asGoogleInsightforSearch.Thisgimmickallowsany-

onetosearchonaword,product,service,andsoforth,

modifythesearchbygeography,seasons,andotherfea-

tures,andthenstudythesearchpatternsandvolumefor

thatsubject.Iftheadvertisersearchesthewordchili,for

instance,andasksforresultsforthestateofNewMexico,

agraphappearsshowingthatsearchesforthewordchili

peakeveryyearintheautumn,exactlyduringthenew

chiliharvest.Shealsocanseethatsearchesarethehigh-

estinthecityofAlbuquerque,althoughtheyalsohighin

Texas.Achilimerchantmayhavesuspectedthatresult,

butnowsheknowsforsure.It’sasomewhatprimitive

toolinthattheresultsaren’tverydetailed,butneverthe-

lessitcanbehelpfultomarketers.

GOOGLEDIDN’TADVERTISEITSELF—

ATFIRST

“Googlehasbuiltthemostloyalaudienceontheweb.

AndthatgrowthhascomenotthroughTVadcampaigns

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GOOGLESPEAKS

butthroughwordofmouthfromonesatisfieduserto

another.”ThisisfromGoogle’sCorporateInformation

page,andthecommentistrue.AtleastGooglenever

advertiseditselfinthetraditionalway,andits

aversion

toself-advertisingmaybedissolving.

LarryandSergeysentoutane-mailinthespringof

1998,whileGooglewasstillinthedevelopmentphase,

toalistcalledGoogleFriends.“Googlehasnowbeen

upforoveramonthwiththecurrentdatabaseandwe

wouldliketohearbackfromyou,”theywrote.“Howdo

youlikethesearchresults?Whatdoyouthinkofthe

newlogoandformatting?Dothenewfeaturesworkfor

you?Comments,criticism,bugs,ideas

welcome.

Cheers,LarryandSergey.”22

Theword-of-e-mailseemedtowork.Peopleresponded.

LarryandSergeysentoutanothere-mailinthesummer:

“ExpecttoseealotofchangesinGoogleinthenextfew

months.Weplantohaveamuchbiggerindexthanour

current24millionpagessoon.Thankstoallthepeople

whohavesentuslogosandsuggestions.Keepthemcom-

ing.HavefunandkeepGoogling.”23

Googlealsohiredamarketexperttocomeupwitha

planforpromotingitself.Theplanwouldcostabouthalf

themoneyGooglehadonhand.Companyleadersdecided

topass.“Marketingwould

havekilledthecompany,”said

SusanWojcicki,“becauseweweregoingtospendlike

fiveortenmilliondollars.Weonlyhadtwentymillion.

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ACompanyIsBorn103

Imagine,youcancutusinhalf;suddenlywewouldhave

hadtolookformoneyorwewouldhavehadtodoban-

neradsorsomething.Wewouldnothavehadtheluxury

thatwehadlateron.”24

Thatisn’ttosayGoogledidn’tspreadthenews

itself.Fromearlyinitslife,Googlepromoteditssearch

andsearch-adproductsthroughdistributiondealswith

softwarecompaniesandbycross

-promotingservices

likeGmailandGoogleBookSearchwithsearchadsand

viaitscorporateblog.

Googlealsoexcelledatpublicrelations.Earlyinits

life,GooglehiredCindyMcCaffreyasdirectorofpublic

relations.Sherecommendeda“pressfirst”approachto

promotion.Byfocusingonproductsandworkingwith

themedia,Googlewouldgetplentyoffreepublicityin

newsstories.

Bythespringof2008,Google’sgrowthhadslowedto

39percent,downfrom58percentayearearlier.In

responsetotheslowergrowth,thecompanygradually

begantoshiftitsviewsonself-advertising.

SomeGoogleemployeesapparentlysuggestedpro-

motingthecompanyonNBCduringtheOlympics,but

SergeyandLarrynixedthe

idea.However,inAugustof

thesameyear,Googlekickedoffanadcampaignin

Japanthatincludedoutdoorandonlineads.Thebrand-

ingcampaignwasnamed“100ThingsYouCanDoWith

Google.”Googledidnotadvertise,butsuccessfully

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GOOGLESPEAKS

placeddozensofstoriesinmajormediaaboutitstenth

birthday.RumorsflewthatGooglewastalkingwitha

NewYorkadvertisingagencyaboutanadcampaignin

thatcity.

BIRTHOFTHEGOOGLEECONOMY

Google’ssearchandadvertisingarrangementsgive

Googlebothprofitsandpower—ifitsalgorithms

demote

yoursite,yourvisitorsandyourrevenuewillshrivel.As

aresult,anarmyofconsultantshasarisenwhopromise

topushawebsiteupthesearchrankings,ornudgeany-

thingnegativeofftheall-

importantfirstpageofresults.

Thecircleofsearch-optimizationcompaniesbeganto

formaroundtheenterpriseandsoonasatelliteGoogle

economyemerged.

FormerGooglego-ferGingerFrankegottheidea

herbusiness,FrankeLifestyleManagement(FLM),after

Sergeyhurthisbackinatrapezeaccident.Sheordered

anewmattressforhimandwenttohisapartmentto

meetthedeliverytruck.Shesawcomicbooksonthe

shelvesandatatteredfutonandotherpersonaldetails

thathelpedherrealizehowlittletimeentrepreneurs

likeBrinhadtotakecareoftheirpersonallives.

Shegotheron-the-jobtrainingforherbusinessat

Google.“InFranke’sfirstyearsatGoogle,thecompany

hadasfewas50employeesandthepacewasfrenetic,”

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ACompanyIsBorn105

wrotetheNewYorkTimes,“soshequicklybecamea

jack-of-all-trades,doingeverythingfromfilling

intheofficewithM

&M’stoplanningcompanysales

conferencesthatseemedtotripleorquadrupleinsize

eachyear.”25

“Theseguyscouldn

’ttellmehowtodomyjob

becausetheyweretoobusybeingentrepreneurs,”said

Franke,whopreviouslyworkedatNetscape.“IfIwas

goingtosurvive,Iwouldhavetofeelandnotthink.”26

Eventually,Frankestarted

FLM,anexclusivecon-

ciergeservicecateringtoSiliconValley’shigh-techhigh

rollers.

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GoingPublic

Forcompanies,goingpublicisafundraisingevent.Forthe

culturesofthosecompanies,itchangeseverything.1

—MarcAndreessen,whoparticipatedinthe

initialpublicofferingsofNetscapeand

LoudCloud(nowOpsware)

Theinitialpublicoffering(IPO)hasbecomeaSilicon

Valleyritual,butlikesomeritualisticevents(Christmas,

forexample)itcangetoutofhand.

LarryandSergeyknewthatapublicstockoffering

wouldchangetheirpersonallives.Theworldwould

knowhowprofitableGooglehadbecomeandhow

wealthytheyhadbecomeaswell.Theirparents’and

theirownliveswouldbeinthespotlight,alongwiththe

attendantpleasuresanddangersoffameandwealth.

AsAndreessennoted,everythingthecompanydoes

everyquarterlyandannualearningsstatement,every

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newsrelease

—willbescrutinized,andwhenactual

informationisn’tavailable,gossipprevails.Additionally,

manyearly,keyemployeesbecomesowealthythatthey

graduallyleavethecompany.Theyeitherdon’tneedto

workandgoofftopursuepersonaldreamsortheynow

canaffordtostarttheirowncompanies.InGoogle

IPO,morethanhalfofthe1,000mostlyyouthfulemploy-

eesweresuretobecomemillionaires.

Thefreedomandfunofbeingprivatelyownedis

gone.JeffSkoll,eBay’sformerpresident,recalls:

Beforewewentpublic,Iusedtosendoutacompany-

widejokeeachday,justasawayoflooseningthings

up.ThedayaftertheIPO,Isatdownatmycomputer

towritethatday

’sjokeandinwalkedthegeneral

counsel.Hesaystome,“Youknowthatjokeoftheday

thing?Ithinkit

’sveryfunny.

”“Gosh,thankyou,

Ireplied.“Well,stopit,”hesaid.“Weareapubliccom-

panynow,andwedon’twanttooffendanyone.Ifyou

wanttokeepsendingoutjokes,theycanonlybeabout

lawyers.”SoItriedsendingoutlawyerjokesfortwo

weeks—andthenIgaveup.2

Despitethedownside,theGoogleboysknewthatthe

timehadcomeandtheymusttakeaction.Theirven-

turecapitalistsandprivateinvestorsneededanIPOin

ordertogettheexpectedreturnontheirinvestment.

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GOOGLESPEAKS

AndGoogleitselfcouldusethecashanIPOcouldraise

tohelpitgrowtoitshighestandbestlevel.

ButLarryandSergeyhadbecomeusedtodoing

thingstheirway,andthewaytheywentpublicwasno

exception.True,theyhadreasontofeelaudacious.They

hadanadvantageoverotherhigh

-techstartupsthat

triedfloatingthemselvesonthestockmarket.Google

hadbeenupandrunningforfiveyearsandhadachieved

profitability,althoughtheyhadkeptthecompany’sdaz-

zlingprofitsfromsearch

-relatedadvertisingasecret

thusfar.

Thestakeswerehigh.Before

thepublicoffering,

financialexpertsestimatedthatGooglewouldbe

valuedat$30billionandthatLarryandSergeywould

beworth

$4billioneach.

3FinallyonApril29,2004,

GooglefileditsS1,therequiredSecuritiesandExchange

Commission(SEC)pre-IPOdocument.

Google’sregistrationstatementmadeabigsplash.

ManyinvestorswereonhighalertforsuccessfulSilicon

Valleycompaniesformedby

amazingyoungandcrea-

tiveminds.WhentheysawGoogle’sstrongrevenues

andprofits,theysuspectedthismightbethenextone.

Googlerevealedthatithadgeneratedrevenuesof

$961.9millionin2003andanetprofitof$106.5million.

Salesrose177percentfrom2002althoughearnings

increasedbyjust6percent.Googlealsoletitbeknown

thatithadbeenprofitablesince2001andwassittingon

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awarchestofawhopping$454.9millionincashand

cashequivalents.

Buttherewereunsettlingaspectstotheofferingaswell,

oneofthembeingtheearnest,seeminglynaïve,andeven

arrogant“founder’sletter”

thataccompaniedthefiling.

“WE’REDIFFERENT”

Itwasaneye

-openingpieceofwork,outliningan

unconventionalcompanywithambitiousplans.Larry

Pagehimselfauthoredtheletter,declaringthatGoogle

wasdifferentandintendedtostaythatway.

Pagetoldprospectiveshareholders,“Googleisnota

conventionalcompany.Wedonotintendtobecome

one.ThroughoutGoogle’sevolutionasaprivatelyheld

company,wehavemanaged

Googledifferently.Wehave

alsoemphasizedanatmosphereofcreativityandchal-

lenge,whichhashelpedusprovideunbiased,accurate

andfreeaccesstoinformationforthosewhorelyonus

aroundtheworld.”4

GoogledeclareditsindependencefromWallStreetin

numerousways,oneofwhichwasrefusingtoprovide

advanceinformationtoanalystsonfuturefinancialper-

formance.GoogleleftWallStreettofigureitoutfor

itself.

“Wedon

’tprovideguidance,

”declaredEric

Schmidt.“Wedon’twanttogetinthewayofrunning

thebusinessandguidancecouldlimitthatiftheygive

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GOOGLESPEAKS

quarterlylines.”5Googlewouldmakealldecisionsfor

thebestlong

-terminterestof

shareholders,evenif

quarterlyearningsturnedouttobebumpy.

Mostshocking,thecompanynamednochiefexecu-

tiveofficer,andthepostwouldremainopenuntilthey

gotaroundtoselectingone.EricSchmidtwouldserve

aschairmanoftheexecutivecommittee,givinghim

poweroverceremonialandlegalissues.

WhentheSECfirstreceivedGoogle’sS1,thecommis-

sionwasnotpleased.Itaskedformultiplechangestothe

papers,includingasuggestionthatthefounders

beless

casual.“Throughoutthedocument,yourefertoexecu-

tiveofficers,directorsandprincipalshareholdersbytheir

firstnames,”theSECwrote.“Forclarity,pleaseconsider

revisingthedisclosureto

refertothesepersonsbytheir

fullnamesorbytheirlastnames.”PageandBrinrefused

tocomplywiththerequest.6

However,theydidhavetomakesomeadjustments.At

thetimeoftheoffering,thebillion-dollarpatentinfringe-

mentlawsuitbyOvertureServiceswasalreadyinthe

courts.TheSECwrote,“YourstatementthattheOverture

Serviceslawsuitis‘withoutmerit’isalegalconclusion,

whichGoogleisnotqualifiedtomake.Pleaserevise[or]

omitthestatement.

”7ThistimeGooglecomplied,and

thendecidedtosettlethesuitbeforegoingpublic.Google

paidYahoo!2.7millionGooglesharestouseOverture’s

patentedwork.

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THEDUTCHAUCTION

TheIPOincludedanothersmackdownforWallStreet.

Googlewouldbypassinvestmentbankersfortheoffer-

ing,usingtheInternetandan

obscure

Dutchauction

processdesignedtodrawabroaderrangeofinvestors

thanthetypicalIPO.PageandBrinweredeeplyoffended

bythewayinvestmentbankerscontrolledwhocouldbuy

shares,andoftendoledoutpurposefullyunderpriced

IPOsharestoinsidersandpreferredcustomers,who

thensoldthestockforaquickprofit.

Googlestockwouldbesoldthroughbrokerage

houses,butanyoneofferingatorabovetheminimum

bidcouldparticipate.Investorswouldberequiredto

purchaseatleastfiveshares,anunusuallylowbarrier

ofentryforthisbusiness.

Pageexplainedwhyheandthemanagementteam

chosethetypeofpublicofferingtheydid:

Manycompaniesgoingpublichavesufferedfrom

unreasonablespeculation,smallinitialsharefloat,

andstockpricevolatilitythathurtthemandtheir

investorsinthelongrun.Webelievethatourauction-

basedIPOwillminimizetheseproblems,thoughthere

isnoguaranteethatitwill.8

Asinnovativeastheideawas,italsobroughtrisk.“The

auctionprocessforourpublicofferingmayresultina

phenomenonknownasthe‘winner’scurse,’and,asa

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GOOGLESPEAKS

result,investorsmayexperiencesignificantlosses,”

warnedGoogle.9Thiscouldhappenif,caughtupinthe

auctionfervor,buyersbidtoo

highfortheshares,andin

thehours,days,orweeksafterthelistingonthestock

exchange,thesharepricecollapsed.

Theever

-skepticalcolumnistAllanSloanwrotein

Newsweek,“Thereal

questioniswhetherGoogle,like

Buffett,willbeabletoignoreWallStreet’sdemandsand

goitsownway.Idoubtit....Googlewillhavetopay

attentiontoitsstockprice—andthus,toWallStreet.I

lovethewaythatGoogledissedtheStreetinitsfiling

distrustingtheStreetistherightmove.Goingpublic,

Ifear,willprovetobethewrongone.”10

Google’sformofownershipalsowascontroversial.

Page,Brin,andSchmidtsetupadual-classstockstruc-

turethatallowedthemtomaintaincontrolofthecom-

pany.Thethreeevokedthe“1/10”rule,underwhichtheir

B“supervoting”sharesget10votesforeveryonevoteallo-

catedtoanAshare.Inotherwords,themanagementtriad

togetherwouldcast66.2

percentofthevoteseventhough

theyownedonly31.3percentofthecompany.

Pageheld38.6millionshares,Brin,38.5million,and

Schmidt,14.8million.Theventurecapitalcompany

SequoiaCapitalheld23.9

millionandKleinerPerkins

Caufield&Byersowned23.9million.JohnDoerrand

MichaelMoritzalsohadapieceoftheactionwith24

millionshareseach.

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AmongtheadvantagesoftheA/Bshareplantothe

corporateleaders:Shareholderscouldnotchallenge

controversialdecisionsandahostiletakeoverwould

beimpossible.

Subsequently,someshareholders—theBricklayers&

TrowelTradesInternationalPensionFundinparticular—

objectedtotheA/Bshareplanandforcedashareholder’s

proposaltovoidit.Obviously,withoutthemanagement

triad’ssupport,themeasurehadnochanceofpassing.

BUFFETTONGOOGLE

MasterinvestorWarrenBuffetthadmetPageandBrinat

theAllenandCompany’sannualJulyconferenceinSun

Valley,Idaho.ThenLarry

andSergey,alongwithEric

Schmidt,madeapilgrimagetoBuffett’sheadquartersin

Omaha,Nebraska,beforeGooglewentpublic.

Allofthisseemsincongruous,consideringthatBuffett

isbestbuddieswithGooglearchrivalBillGatesof

Microsoft

andthatGeico,aninsurancecompanyownedbyBuffett’s

company,BerkshireHathaway,wassuingGooglefor

trademarkinfringementatthetime.

YetBuffettwasimpressed

withthetwoyoungmenand

theirideas.“It’snothardtoseethatGoogleisaphenome-

nalcompany,”hesaid.“Thewholeideaofsearchnever

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GOOGLESPEAKS

occurredtome.Ineverthoughtofit.NowatGeicowepay

theseguysalotofmoneyforthisandthatkeyword.”*

TheGoogleguyshaveaspecialcombinationoftalents,

hesays.Theyunderstand

bothtechnologyandbusiness,

andtheyknowwhattheculturewants.

“They’vegota

moneysensethatmixeswithaculturesense.”

LarryPagepatternedhis“LettertoShareholders”in

theannualreportaftertheletterBuffettwriteseachyear

forBerkshireHathaway.

*FromauthorinterviewwithWarrenBuffett,December10,2008.

BERKSHIREHATHAWAY’SSHARESTRUCTUREVERSUSGOOGLE’S

BrinoncesaidthattheA/Bsharestructurewaspatterned

afteroneusedbyBerkshireHathawayandseveralmajor

mediacorporations.Infact,theGoogleplanisnothing

liketheBerkshireplan,eventhoughtheendresultmay

besimilar.

Berkshireoriginallyhadonlyoneclassofshares,with

WarrenBuffettandhisfamilyholdingthemajorityofthose

shares.WhentheBerkshirepricerosetoaround$100,000

pershare,somelong-termshareholderscomplainedthat

theywouldliketosellsharesordistributethemasgifts,

butthehighstockpricemadethatawkward.Toresolve

thematterandmakethesharesmoreliquid,Berkshire

floatedanewshareofferingofBsharesthatwereworth

1/30ofanAshare.AnAsharecouldbeconvertedinto

Bshares.However,Bshareshadnovotingrightsand

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GoingPublic115

couldnotparticipateinaninnovativecharitablegiving

program,whichsincehasbeendiscontinued.So,even

thoughBuffettcontinuestodominatethecompanyonthe

basisofthelargenumberofsharesownedbyhimandhis

familymembers,heisnottheonlyonewhocanownA

shares.AllAsharescarryexactlythesamevoting

rights

thatBuffettdoes.AnyonecanstillbuyAshares,andany-

onewhochoosestodosocanbuyBshares.

MorganStanleyandCreditSuisseFirstBostonbecame

Google’sleadbanks,andthecompanypickedNASDAQ

asitsexchange,tradingunderthesymbolGOOG.

Snubbingfateagain,theGoogleguyschosethemonth

ofAugustfortheIPO,atimewhenmostofWallStreet

traditionallypacksitinandgoestothebeach.Scarier

yet,theypickedFridaythe13thtolisttheirshares.The

companyannounceditwouldsell$2,718,281,828worth

ofitsshares—anotherlittleGoogle/mathematicianjoke.

Theseeminglyrandomnumberisthenumericaldefini-

tionofe,aconceptsomethinglikepi,andafamiliarconcepttomathgeeks.Atfirst,Googleseta

pricerange

of$108to$135pershare.Later,duetoroilingcontro-

versy,theinitialsharepricewastrimmedto

$85per

share.Mostcompaniesstructuretheofferingsothey

cangopublicaround$20a

share.

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GOOGLESPEAKS

Onthedaytheshareswentonsale,thepricerose

$100andbythenextdaysharesweretradingat

$108.31.By2008,thesharessoaredto$741.79before

the2008recessioncausedthesharestoplummetmore

than60percent.Eventhen,thesharesneverdropped

below$247.

Googleshowedanindependentstreakinitsapproach

totheIPO,butitalsogotbadlyknockedaroundduring

theprocess.OnMay4,justdaysafterthegoing-public

announcement,theinsurancegiantGeicofiledalaw-

suitagainstthesearchengine

fortrademarkinfringe-

mentforsellingitsnameasasearchword.Thiscasta

cloudontheproceedingssinceGooglehadlostsimilar

lawsuitsinFranceandGermany.

TheSECalsotookacloselookatGoogle’sbooksand

foundirregularities.In2003,thecompanyhadissued

vastnumbersofsharesandoptionswithoutregistering

themorinformingemployeeshareholdersofitsfinan-

cialresults.Thecompanywasforcedtocorrecttheerror

bybuyingbacktheshares.It

wasneverclearwhythis

hadhappened,butspeculationwasthatitcameabout

becauseofSergeyandLarry’sfondnessforsecrecy.11

THEPLAYBOYINTERVIEW

Amidstallthecontroversyandconfusion,Larryand

Sergeymadeanothermisstep.Oncetheregistration

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GoingPublic117

statementwasfiledwiththeSEC,Googlewouldbein

therequiredquietperiod

untilthestockactuallysold.

Duringthistime,thecompanywasprohibitedfrom

doingorsayinganythingthatwouldhypetheshares.

InApril,justamonthbeforetheywouldbefilingforthe

IPOandenteringtheSEC-mandatedquietperiod,they

grantedaninterviewtoPlayboymagazine.Clearlythere

wasriskthatthearticlewouldappearbeforetheIPOwas

complete.Whenthestorycameupinanissueofthegirly

rag,questionsagainaroseastothefounders’maturity.

Whilethestorydidn

’trununtiltheSeptember2004

issue,copiesofthemagazineusuallyareavailableor

onnewsstandslongbeforethepublicationdate.Thus,

the“candidconversation”didbecomepublicduringthe

silentperiod.Again,itseemedasiftheIPOmightbe

interrupted.Butafterweeksofworryandscramblingby

Google’sattorneys,theSECagreedtoallowthestoryto

belistedasanaddendumtotheS1,makingitformally

partofthefulldisclosure

requirement.

Ithelpedsettlestormywaterswhenallthreetop

executives—LarryPage,SergeyBrin,andEricSchmidt—

intherunuptotheIPOreducedtheirannualsalariesto

adollarayearandrefused

bonuses,tyingtheirpersonal

wealthdirectlytothecompany

’sperformanceinthe

stockmarket.Googlewasbackontracktobeoneof

themostuniqueandunlikelyIPOsinthehistory

ofWallStreet.

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GOOGLESPEAKS

Intheend,thosestrongearnings,profits,andreserve

fundsprevailedandtheGoogleguyspulleditoff.The

initialpublicofferingtookplaceonAugust18,2004,

with19,605,052sharessellingatanopeningpriceof$85

pershare.Google’sofferingraised$1.67billion,giving

thecompanyamarketcapitalizationof$23billion.A

numberofGoogleemployeeswithsharesinthecom-

panybecamemillionairesovernight,andLarryPage

andSergeyBrinfoundthemselvesmultibillionairesat

age27.Googlewasanimmediatefavoritewithindivid-

ualinvestorsandthestockpricehassoared.

OneofthebigwinnersfromGoogle’spublicoffering

wasStanfordUniversity,whichactuallyownskeyGoogle

technologydevelopedattheUniversity.WhentheIPOwas

complete,Stanfordheld7,574sharesofClassAand

1,650,289sharesofClassBGoogle.AccordingtotheSEC,

thoseholdingswerevaluedat

$179.5million.Stanford

trusteessold184,207shares,nettingaquick$15.6million.

TENYEARSLATER

Googleentered2008,thetenthanniversaryofitsfound-

ing,withtrumpetsblaringandtriumphantflagsflap-

pinginthebreeze:

•Month-by-monthitsshareofthesearchmarket

wasgrowingatwellover15percentannually,

reachingnearly60percentearlyintheyear.

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GoingPublic119

•Itsfinancialpositionwaslikeafortress,with$14.2

billionincash,

$17.3billioninassets,andonly

$2.4billionincurrentliabilities.

•Inthefouryearsaftergoingpublic,salesrevenues

hadrocketedfrom$3.2billionto$16.6billion.Net

incomehadincreasedevenmore,goingfrom$399

millionin2004to$5.3billionattheendof2007.

•Googlenowhadaworkforceofnearly20,000

comparedto3,000fouryearsearlier.

•Thecompanywasacquiringnewbusinessessuch

asYouTubeandpioneeringproductsinallsortsof

fields,includingthestoringofmedicalrecordsand

otherinformationonline.

Evenso,thereweresignsthattheGooglephenomenon

hadreachedanewphase,andthatperhapsexpectations

for“thesearchenginethatcould”hadbecomeoverblown.

Googlewasbeginningtoscarepeoplewithitsunbe-

lievablereachintoprivacy,propertyrights,andhuman

rights.Itscompetitorswerefeelingthehotbreathof

Googleontheirnecksin

dozensofInternetandwire-

lessrealms.Thecompanywasaccusedofwantingto

dominateallformsofadvertising,concernsthatscut-

tledaproposedadvertisingpartnershipwithYahoo!.

BusinessWeekposedthequestion,“IsGoogletoo

power-

ful?,”andWiredmagazinedeclared,“Who’sAfraidof

Google?Everyone.”

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GOOGLESPEAKS

WritingforTheMotleyFoolwebsite,AlyceLomax

admittedthatGooglewasaninnovativeandsmartcom-

pany,butshehadherdoubtsaboutthelongterm.

“Here’swhyI’mapathetictoalltheGooglehoopla:Its

otherproductshaven’tcomeanywherenearitssuccess

withcoreInternetSearch(andlucrativetargetedadver-

tising).Fortunatelyforit,thatfinancialsuccesshas

allowedittocarryonlikeanabstractartist/prima

donna,throwingabunchofstuffagainstthewalltosee

whatsticks.Butsofar,ithasbeenimpressivejusthow

littletheseextrashavereallymatteredtoGoogle.”12

TheEconomistspeculatedthatGoogle’sshareprice

hadpeakedat$742onNovember6,2007,asuspicion

thatwouldbeconfirmedinthemonthstocome(atleast

sofar).Thestock’sfirst

realslidecouldbepartlyblamed

onatouchystockmarket,butalsopartlyonaslight

slowinginGoogle’smiraculousgrowth.

Inearly2008,thesharestookasecondpounding

whensomemarketanalystspredictedthatGoogle’sad

saleswoulddeclinesubstantially.OnFebruary28,2008,

thesharesfell$10.8billioninmarketcapitalizationin

just20minutes.Whenthesalesnumberscameout,

Googledefiedtherumors,stillrunningstrong.The

sharepricerecovered

somewhat,butstillclosed25per-

centfromitsJanuaryhigh.

Notlongafter,therealizationofaworldwidereces-

sionclenchedthemarketsinfearandGooglesoonlost

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GoingPublic121

60percentofitsvalue.Atonepointintheyear,Google

tradedaslowas$247.Bytheautumnof2008,Pageand

Brinhadlostroughlyhalfoftheirnetworth(atotalof

$12.1billion)duetovolatilityinthestockmarket.

ItwastruethatGoogle’sbreakneck-speedgrowthhad

slowedalittle,buttheresultswerestilldarngood.Third-

quarterprofitsgrewahealthy26percent,althoughthey

paledsomewhatcomparedto35percentinthethird

quarterof2007.Thenumber

ofthird-quarterpaidadver-

tisingclicksgrewby18percent,offonlyslightlyfrom

2007’s19percent.

ToGoogle’scredit,thecompanydidnotgointodenial.

Sergeyadmittedthecompanywasasvulnerabletoeco-

nomicstrifeasanyother:

Totheextentthateverybodystartsspendingalotless,

Idon’tthinkwearenecessarilyimmune.Idon’tthink

anycompanyisimmunetoatotalbust.13

AlthoughEricSchmidtsaidhewasoptimisticabout

Google’sfuture,headded,“Weareinunchartedwaters

now.”14

Thecompanyimmediatelybeganreviewingallofits

expenditures,includingthehoursoffreecafeteriaserv-

iceandliberalbuildingofdatacenters.Googlebegan

reducingitsarmyof10,000contractemployees.Schmidt

saidhewouldtrimawayanyprogramthecompanywas

merely“fiddlingwith.”15

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GOOGLESPEAKS

Itwasn’tentirelybadnewsatGoogle,though.The

preparationforhardtimescameearlyandGoogle

financialfootinghasremainedsolid.Itspercentageof

thesearchbusinesskeptgrowing,andalongwithit,ad

sales.

“Googlejustcontinuestograbmarketshare,

saidMattTatham,spokesmanforthemarketresearch

companyHitwise.“There’snoceilingforthem.”16

ThreemonthsafterGoogle’stenthanniversaryand

inthemidstofmuchgloom,TheMotleyFool’sAlyce

LomaxnowsawGoogle

’sbelt

-tighteningaspositive.

“OnGoogle’s10-yearanniversaryinSeptember,Isaid

thatitscreativityneedstobetemperedwithmaturity

andrestraint.Maybethecompanyfinallygetsit.Or

maybetoughtimesbuildcharacterincompaniesand

peoplealike.Whateverthe

case,agrown

-upGoogle

couldendupbecomingaverygoodthingforinvestors’

long-termportfolios.”17

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TheVision

LarryandSergey’sdeepsenseofpurposedroveGoogle

fromthebeginning:

“SergeyandIfoundedGoogle

becausewebelievedwecouldprovideanimportant

servicetotheworld—instantlydeliveringrelevantinfor-

mationonvirtuallyanytopic,

”wroteLarryPagein

Google’sfirstcorporatereport.

Servingourendusersisattheheartofwhatwedo

andremainsournumberonepriority.Ourgoalisto

developservicesthatsignificantlyimprovethelivesof

asmanypeopleaspossible.Weareproudoftheprod-

uctswehavebuilt,andwehopethatthose

wecreateinthefuturewillhaveanevengreaterposi-

tiveimpactontheworld.1

Googleaspires“tocreatedesignsthatareuseful,fast,

simple,engaging,innovative,universal,profitable,

beautiful,trustworthyandpersonable.Achievinga

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GOOGLESPEAKS

harmoniousbalanceofthesetenprinciplesisacon-

stantchallenge.Aproductthatgetsthebalancerightis

‘Googley’—andwillsatisfyanddelightpeopleall

theworld.”

“LarryandSergeythoughtalotabout[ourmission]

beforetheygotstarted,”explainedGoogleVicePresident

MarissaMayer.

“Atothercompanies,there

arethese

DilbertiancrewsofHRpeoplewhoshowupandsay:

‘We’veoutgrownourmissionandweneedtowritea

newone.

’ThathasneverhappenedatGoogle.The

missionisexactlywhatLarryandSergeywrotebackin

thefallof1998,beforeanyofuswereevenhere.”

DespitefrequentearlystatementsthatGooglewasabout

search,Mayersaidthatthevisionalwayswasbroaderthan

that.“Itwasn’tjustaboutWebsearch.WhenIshowedup,

Isaid,‘Guys,shouldn’twebecallingthecompanyGoogle.

com?’Theysaid:‘Oh,we’renotjustadot.com.We’renot

goingtobejustabouttheWeb.We’regoingtobeall

ofthings.’”2

Inthefallof2004,Google’stopmanagementrealized

theyneededmorestructure.Theyengagedinaprocess

ofstrategicreview,or“visioning”aboutthecompany

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TheVision125

meaning,intent,andfuture.ItallstartedwhenPage

andBrinwentintoall

-nightseclusion,writingwhat

becameknownas“TheTablets.”(ToreadtheGoogle

TenCommandments,checkoutthesection“TenThings

GoogleHasFoundtoBeTrue,”inthechapter“Google

Culture.”)

MAKEITUSEFUL

Googleismyrapid-responseresearchassistant.Ontherun-upto

deadline,Imayuseittocheckthespellingofaforeignname,

toacquireanimageofaparticularpieceofmilitaryhardware,to

findtheexactquoteofapublicfigure,checkastat,

translatea

phrase,orresearchthebackgroundofaparticularcorporation.

It’stheSwissArmyknifeofinformationretrieval.3

—GarryTrudeau,cartoonistandcreator,

“Doonesbury”

PageandBrinfeltfromthebeginningthattheyshould

workonsomethingthatwasnotsimplytheoretical,but

thatwouldbehelpfultoothers.Theirdreamscombined

severalpossiblecareersintoone.“Mygoalwastowork

onsomethingthatwas

academicallyrealandinterest-

ing,”Pagerecalls.

Fromanearlyage,IalsorealizedIwantedtoinvent

things.SoIbecamereallyinterestedintechnology...

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GOOGLESPEAKS

andbusiness.SoprobablyfromwhenIwas12Iknew

Iwasgoingtostartacompanyeventually.

Googleteamstakethemissionastepfurther,tryingto

discoverneedsthatpeopledon’tyetknowtheyhave.

ThereisnoquestionthatGoogleisusefulandthe

waysinwhichitcanbeusefulseemendless.Forexam-

ple,abicyclistinthe2008Olympicsdescribedhowshe

usedGoogleEarthtostudy

theOlympicbicycleroute

inChinaandthenfindasimilarrouteintheUnited

Statesonwhichtopractice.Landsurveyorsareusing

GoogleEarthforpreliminaryjob

-sitereconnaissance

andforplanningthesurvey.

Duringthe2008elections,

Googleuseditsmapstocreateawebsitetohelpvoters

findtheirpollingplaces.ThelistofwaystouseGoogle

goeson.

Someideasseemusefulbutdon’tturnoutthatway.

The“I’mFeelingLucky”buttondirectsuserstothefirst

pageGooglereturnsfortheirquery.So,wheredidthe

ideaforabuttonthatanticipatesexactlywhatsomeone

wantsworkout?

DuringaNationalPublic

Marketplaceinter-

view,Sergeyexplained,

“Thereasonit

’scalled

‘I’m

FeelingLucky,’isofcoursethat’saprettydamnambi-

tiousgoal.Imeantogettheexactrightonethingwith-

outevengivingyoualistofchoices,andsoyouhaveto

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TheVision127

feelalittlebitluckyifyou’regoingtotrythatwithone

go.That’soneoftheotherproblemswiththebutton.It

doesn’talwaystakeyouwhereyouwanttogo.Butsince

it’sthere,surelypeoplemustbeusingit.”

MarisaMayer,Google

’svicepresidentresponsible

foreverythingonthesearchpage,saysnotreally.It’s

notapopularitem.“Iwouldsayit’slessthan1percent

ofoursearchesaredonethroughthe‘I’mFeelingLucky’

route,”shesaid.EvenSergeyBrinadmits,“Isometimes

useit,thoughrarely.”

TomChavezheadsRapt,acompanythathelpsdeter-

minethedollarvalueofadvertisingonaWebpage.He

didthemathonhowmuchthe1percentofpeoplewho

usethebuttonarecostingthecompany.

“Basically,”

saysChavez,“youhave$110millionofrevenuelossper

yearassociatedwiththatbutton.

”5Thelosscomes

becauseoftheadvertisingthatsearchersdon

’tgeta

lookat.Googlekeepsthebutton,however,becauseof

whatitseesasacomfortfactor.

THEMANYWAYSTOGOOGLE

TherearescoresofwaystouseGoogle,andcreative

applicationsareaddedsoquicklyit’snearlyimpossibleto

keeptrack.

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GOOGLESPEAKS

SimplesearchesonGoogle(aswellasmanyother

searchengines)havebecomeridiculouslyeasy.Thesearch

boxalsoactsas:

•Acalculator:Insertanyequation,suchas56ϫ287Ϭ

11,andgetaquickresult.

•Aconverter:Milesto

kilometers,pintstogallons,

kilogramstopounds—askandyou’llgettheanswer.

•Acookbook:Gotoyourrefrigerator,checktheleft-

overs,oddsandends,andsoon.Typetheitemsinto

theGoogletextboxandcomeupwitharecipe.The

dayafterThanksgiving,theitems“avocado,orange,

turkey,cranberry,cheese,”broughtupsearchresults

ofarecipeforturkeytacoswithcranberrysalsa.

Yummy!

•Atelephonedirectory:Typeinthewordphonebook,acolon,aname,anda

location,andgetthenumber.

Ifyouwanttotrackdownyouroldcollegeroom-

mate,SlymSmyth,andyouthinkhe’sinMiami,type

inphonebook:slymsmythMiamiFLandthenumber

shouldcomeup.Thisfeatureoffersan“opt-out”but-

ton.Removeyournamefromthephonebookifyou

•Astockticker:ThesymbolGOOGlinkstoareal-time

sharepriceforthecompany.Itworksforanystock.

Allyouneedisacompany’sstockexchangesymbol.

•Aflighttracker:Typeintheflightnumber,suchas

AA377,andtrackaflight’sprogress.

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TheVision129

•Aridefinder:Ifyouwanttomovearoundoneoften

majorU.S.cities,thisisataxi,limousine,andshuttle

searchserviceusingreal-timepositionsofvehicles.

•Anotherchance:Ifyouhitabrickwallwithyour

search,ordonotturnouttobeluckyatall,explore

BananaSlug(

www.bananaslug.com).BananaSlug

wasdevelopedasanapplicationprograminterface

(API)toGoogle.Atthesiteyoukeyinyoursearch

words,selectacategoryforyoursearch,andthenhit

thesearchbutton.BananaSlugaddsarandomword

fromyourchosencategory.Oftenthisrandomcate-

gorywordbringsupanentirelynewlistofhitswhere

youmayfindtheoneyou’reseeking.

Googleapplicationscoveranextensiverangeoftasksand

subjects.Someare

appropriatefortypicalcomputerusers.

OthersareformoresophisticatedWeb

-oriented

individuals.

•Chromebrowser:DesignedtocompetewithMicro-

softandFirefox,Chromerecentlyemergedfromthe

betastageasasimplebutveryfastbrowserwith

someunusualfeatures.

•DocumentsandSpreadsheets:Thisfreesoftware

issimilarto,butlesssophisticatedthan,thatsold

Microsoft.Thesoftwarealsoallowsthesharingof

informationinrealtime.

•FlightsSMS:Formobilephoneusers,thisdelivers

informationonthestatusofyourflightwhenyou

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GOOGLESPEAKS

textyourairlineandflightnumberto4666453

(GOOGLE).

GoogleAndroid:Softwareplatformandoperatingsys-

temformobilephones.

GoogleBooks:Selectsbooksaccordingtosearchkey-

word,thenallowsbrowsingofcertainvolumesandthe

downloadoffulltextofothers.Forexample,theShake-

spearesearchfeatureletsuserslocateclassictexts

theBardofAvon.

GoogleEarth:ImagesofEarthandeventhegalaxies

with360-degreeviews.Theimagesaren’treal-time,and

ifyouzoomintooclosetheygetfuzzy,butit’sacooltool.

Googlealsooffersviewsoftheoceanfloor.

IFeelLucky:Aseldom

-usedGooglefeature,IFeel

Luckytakessearchersdirectlytothetopsearchresult,

sansadvertising.Googlekeepsthebuttoninplaceasa

comforttousers.

GoogleImages:Ifyou’rejustcuriousabouttheavaila-

blephotosofcelebrities,fromAlaskaGovernorSarah

PalintoactorMattDamontosportsfigures,gotoGoogle

Images.Thereareimagesofalltypes—drawings,paint-

ings,cartoons,posters,andmore.Easytoborrow(orsteal

orsample)foryourownartprojects.

GoogleMaps:Givesmapsanddirectionstospecific

addresses.Otherfeatureshavebeenintegratedintothe

maps,includingpublic

transportationroutes,andloca-

tionsofschools,museums,andsoforth.

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TheVision131

Gmail:Notthefirstoreventhebeste-mailservice,but

probablytheonewiththelargeststoragecapacity.Gmail

usersalsogetadvertisementslinkedtokeywordsinthe

messages.

GoogleNews:Anaggregatorofnewssummariesfrom

4,500English-languagenewssources,theservicecan

customizedaccordingtotheuser’sinterests.

GoogleSets:IntheGooglewindow,typeinGoogle

Sets.Uppopsanapplicationthatallowsyoutostartalist

ofacertaincollectionofthings;thenGooglegivesyoua

longerlistoflikeitems.Forexample,typeinruby,opal,

emerald,andyou’llgetaninventoryofpreciousstones.

Entercommongardenflowerssuchasrose,violet,daisy,

andalistofdomesticatedflowersappears.Bycontrast,

typeinyarrow,lupine,

harebell,andthelistiscompleted

withwildflowers.Thisisausefultoolforjoggingthe

memoryoraddingmoreinformationtowhatyoualready

GoogleStreet:Photographsofactualstreetsandeven

specificaddressesinmostU.S.citiesandmanyothercit-

iesaroundtheworld.Thisapplicationtendstomakeresi-

dentsfairlynervous.

GoogleTalk:Analternativetothetelephone,this

allowsyoutospeaktopeople

anywhere,anytime,usinga

computer.

VoiceLocalSearch:Freeservicefromanytelephone.

-800-GOOG-411(1

-800-466-4411)andaskfora

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GOOGLESPEAKS

businessbynameortypeandlocation.Apleasantmale

voiceresponds,andentertainswithscatsingingwhilethe

informationisretrieved.

YouTube:Socialnetworkingwebsitefeaturingvideo

clipsandsomefulltelevisionshows.It’sfree,butyoumay

discoveradsappearingwithcertainvideos.

MAKEITBIG

“Google’sambition,

”explainedEricSchmidt,

“isto

solvebigproblemsthatimpactalotofpeople.”6Schmidt

addsthattheGoogleguys“thinkaboutwhatshouldbe

andassumeitispossible.”7

“Solvingbigproblemsiseasierthansolvinglittle

problems,”claimsLarry.8OnereasonGooglesponsors

itsannualZeitgeistconferenceistoencouragethose

attendingtothinkaboutsolutionstotheworld’smajor

dilemmas.

Inonestrategymeeting,BrinandPagewereannoyedat

thepresentation.Pagecomplainedthattheengineers

weren’tambitiousenough.Brinagreed,callingthepro-

posalsmuddledandoverlycautious.“Wewantsome-

thingbig,”saidPage.“Insteadyouproposedsomething

small.Whyareyousoresistant?”9

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TheVision133

Googleofficiallybecamethe

world’slargestsearch

libraryin2000,onewithabillion-pageindex.Bymid

2008,itsengineersreportedthattheyhadregisteredthe

trillionthWebpageintothesearchengine.

WeServetheWorld

Wecontinueoureffortsto

makeGooglemoreglobal.Googleis

availablein160differentlocalcountrydomainsand117lan-

guages(includingsomeobscureoneslike“SwedishChef”—

Bork,Bork,Bork).

—Google’s2007Annual

Report

Thefirsttenforeign-languageversionsofGoogle.com

werereleasedin2000,withaccessinFrench,German,

Italian,Swedish,Finnish,Spanish,Portuguese,Dutch,

Norwegian,andDanish.ThosewhospeakAfrikaans

IcelandictoZulucannowuseGoogleintheirnative

tongues.

CheckingoutGoogle’slanguagelist,youmightfind

yourselfwonderingwhereTwiisspoken.Inadditionto

Bork,Bork,Bork(the

languageoftheSwedishcheffrom

theMuppetShow),thoseconversantinfictitioustongues

suchasKlingonandElmerFuddalsocanGoogle:“...

lotsofpeopleuseourservicesinplacesSergeyorI

haven’tbeentoyet,”Page

noted.

WhileGoogleoffersaservicethathooksuptranslators

withthoseneedingtranslations,oneofGoogle

’smost

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GOOGLESPEAKS

challengingandintriguingprojectsisautomated,

machine-basedlanguagetranslations.Insteadofcon-

vertingtoanewlanguagethetraditionalway,thesystem

searchesforthemostoften

andcommonlyusedtransla-

tionofwordsandphrases.Thenitputsthemtogetherin

sentences.Sofarthetranslationsarefairlycrude,but

languageexpertsbelievethatwithGoogle’shugedata-

base,thiskindoftranslationshouldbecomesmoother

overtime.

AccordingtoEricSchmidt,

“Wewilleventuallydo

100by100languages,totakethissetoflanguagesand

converttoanother.Thisalonewillhaveaphenomenal

impactonanopensociety.”10

GoogleopeneditsfirstofficeoutsidetheUnitedStates

in2001.Sevenyearslater,thecompanyoperatedmore

than60officesabroad.GoogleknowsthattheInternet

isforthemostpartoblivioustointernationalborders,

andincreasingly,theactual

worldisbecomingmore

likethevirtualworld.“Westrivetobealocalcompany

ineverycountrythatweoperate[in]andweunderstand

thatourusersallhavedifferentcultures,”saysGoogle.

WhenGooglewentinto

SouthKoreaandChina,it

hadtoalteritsminimalisthomepage.Websurfersthere

preferredpagesthatwerevisuallycomplexandoffered

alotofentertainment.11

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TheVision135

Googleisstillworkingtoestablishbusinesspres-

encesinplacessuchastheMiddleEast.“Asweexpand

ouroperationsandhireourfirstemployeesinanother

country,thatpartofGooglefeelslikeastartup,”wrote

LarryPageinthe2007AnnualReport.“Everytimewe

traveltoanewGoogleofficeweseeamazing,smart,

excitedpeopleandlavalamps,”Pagesaid.12

Attentiontoglobalmarketsmakesgoodbusiness

sense:By2008,morethan

halfofGoogle’srevenuewas

comingfromoutsidetheUnitedStates.13

“Itturnsouttherealworldmatterstopeople,inthe

formofmaps,satelliteimages,businesslocations,bike

paths,andallothertypesof

geographicdata.Weare

hardatworkinallthesedomains.”14

GooglealsoliterallygoesoutofthisworldwithSky

mode—adazzlingviewofthenightsky,completewith

super-high-resolutionimagesfromtheHubbletelescope.

MAKEITFUN

Googlehasimprovedmysexlife,tightenedmyabs,andbrought

meclosertoGod.(Ikeed.)Actually,asaworkinggossipcol-

umnist,IappreciateGoogleasarough—veryrough—research

tool.TheInternetisstilltheWildWest.15

—LloydGrove,columnist,NewYorkDailyNews

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SiliconValleyhasahistoryofAprilFools’Dayjokes,and

Googlejoinsrightin.In2000,Googleannouncedthe

MentalPlex,Google’sabilitytoreadyourmindasyou

visualizethesearchresultsyouareseeking.Sometimes

theAprilFools’Dayjokesgetjumbledupwithmore

seriousbusiness.OnApril1,2004,Googleproclaimedit

wouldopenaresearchfacilityonthemoon.Onthe

sameday,itannounceditsWeb-based,freemailserv-

ice,Gmail.Shootingforthemoonclearlywasaprank,

butwhataboutGmail?Itwasreal.

Googlehastriedtoinfuseasenseoffunintoitshuntfor

greateradvertisingrevenues.Thiswasmostapparent

whenitmadeitselfaliaisonbetweenHollywoodtalent

andonlineentertainmentwithits“SethMacFarlane’

CavalcadeofCartoonComedy”project.Theclipsofthe

televisionshow

TheFamilyGuywereofferedtoa

numberofWebpagesfrequentedby18-to34-year-old

men.“WecanworkwithmoreandmoreSethsandcon-

nectthemtoadvertisers,”saidAlexandraLevy,director

ofbrandedentertainmentatGoogle.16

LarryPageisimpressedbytheentertainmentavaila-

bleonhisownwebsite:“I’

mamazedatthequalityand

diversityofthevideoavailableonGoogleVideo,with

morebeingaddedeveryday.Youcanbuyfirst-runpro-

grams,suchasSurvivorfromCBS,withhighpicture

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TheVision137

quality,andwatchthemonyourcomputeranytime.”

Pagemarveledthatuserscouldsubmittheirownvideos

andletanyoneintheworldwatchthemforfreeor

embedavideofromGoogleVideoonanyWebpage:

Toviewsomeofmyfavorites,searchfor

“Russian

climbing”foracrobaticsontallbuildings,“bsb”for

amazinglipsynchers,or“airbus7”towatchanAir-

busbeingbuiltinsevenminutes.17

Sportsfansgetinontheaction,too.In2008,Google

providedStreetViewfortheentireTourdeFrancebicy-

cleraceroute,thefirstlaunchofStreetViewimageryin

Europe.

Sometimesthefun

-lovingbusinessstyleatGoogle

seemsjustplainjuvenile.In2006,Brin,Page,and

SchmidtwerepreparingforaGooglesalesconference

atthemassiveSanFranciscoMosconeCenter.Before-

hand,theymetwithaTimereporter,AdiIgnatius.The

groupgatheredatatablecoveredwithLegobricks.

ThestorythatPageoncebuiltaprinteroutofLegoshas

becomelegendary.BothBrinandPagewerebusysnap-

pingbrickstogether.Ignatius

askedwhattheywere

building.“IwashopingtobuildaLegonuclearreactor,”

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GOOGLESPEAKS

saidBrin,

“butIthinkIhaveabazooka

-wielding

robot.”Pagechimedin,“Hey,Iknow.Let’sbuildEric

outofLegos.”

Laterthereporteraskedhowthemanagementteam

wasdealingwiththeneedfortransparencyintheir

business.Brinheldupaclearplasticpiece,“Look,I’m

onlyusingtransparentLegos.”18

GoogleUsersHearkentotheCall

IfGooglersdon

’tmakethewebsiteGooglyenough,

thoseusingGooglewilladdtheirownenhancements.

Internetsearchershavecompiledalistofamazing

sightsfromGoogleEarth.Theyhavediscoveredthat

fromonhighthegardensatChateaudeVersailleslook

likeagiant,grinningpuppy.Hidinginthehillsof

Alberta,Canada,istheimageofanenormousnative

American,completewithheaddress.Andalikenessof

JesuscanbefoundinPeruviansanddunes.

Tomaketheplanetevenmorealluring,humanshave

startedcreatingartthatcanbeseenfromspace,ifsome

ofitcanbecalled“art.”KentuckyFriedChicken’sColo-

nelSaundershasbeenpaintedintotheNevadadesert,

OprahWinfreyfansputherfaceinafarmfield,andif

you’restillwonderingwhereWaldois,hisoversized

imagehasbeenpaintedonrooftopshereandthere

aroundtheglobe.

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TheVision139

Beforeanyonegetstoosilly,thecompanywarns,

“Googledoesn

’tletfunorpersonalityinterferewith

otherelementsofadesign,especiallywhenpeople

livelihood,ortheirabilityto

findvitalinformation,is

atstake.”19

DON’TDOEVIL

Managementisdoingthingsright;leadershipisdoingthe

rightthings.20

—PeterF.Drucker

Inthe2004Playboy

interviewthatplayedhavocwithits

publicofferingprocess,thewriteraskedwhether“Don’t

DoEvil”wastrulythecompanymotto.

“Yes,it’sreal,”insistedSergey.

“Isitawrittencode?”asked

thereporter.

“Yes,”saidSergey.

“Wehaveotherrulestoo.

added,“It’snotenoughnottobeevil.Wealsoactively

trytobegood.”21

In2001,Googleengagedits

employeesinanexercise

ofdefiningthecompanyandsettinggoals.Thecompa-

ny’sengineers,notoriouslyanti-corporate,pooh-poohed

thediscussion.Butoneengineer,PaulBuchheit,spoke

thewordsthatmanywere

thinking.Buchheitsaidthat

alltheideaskickingaroundcouldbewrappedupinthe

phrase,“Don’tbeevil.”Thestatementresonatedand

stuck.

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GOOGLESPEAKS

DavidFriedberg,wholeftGoogletofoundWeather-

Bill,whichhelpscompaniesprotectthemselvesfrom

damagingweatherevents,saidthatbeforeeveryacqui-

sition,thepairaskedwhether

itcouldbeevil.“Thatwas

alwaystheconsideration,”hesaid.22

BretTaylor,whobecameaventurecapitalistafter

exitingGoogle,saidthatthefounders’attentiontothe

sloganmadehimfeelpartofsomethingspecial.“They

alwaysmademefeelmuchbiggerthanmyself.”23

HowGoogleDefinesEvil

EricSchmidtoncequippedthatevilwaswhatever

SergeyBrinsaiditwas.Google’sexperiencesshowhow

difficultitistopindownthedefinitionofevil.

Brinsaysthatthereoftenisdiscussionaboutthedefi-

nitionofevilandhownottobeevil.“Wedealwithall

varietiesofinformation,”hesays.

Somebody’salwaysupsetnomatterwhatwedo.We

havetomakeadecision,otherwisethere

’sanever

endingdebate.Someissuesarecrystalclear.When

they’relessclearandopinionsdiffer,sometimeswe

havetobreakatie.Forexample,wedon’tacceptads

forhardliquor,butweacceptadsforwine.It’sjusta

personalpreference.Wedon’tallowgunads,andthe

gunlobbygotupsetaboutthat.Wedon’ttrytoputour

senseofethicsintothesearchresults,butwedowhen

itcomestoadvertising.24

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TheVision141

WhenMotherJonesmagazinesasks,“IsGoogleEvil?,”

thediscussionhasbecomeserious.25“Whenfaced

doingtherightthingordoingwhatisinitsbestinter-

ests,Googlehasalmostalwayschosenexpediency,

wroteMotherJones.26

Asevidence,themagazinecitedtheincidentswhere

Googleeliminatedlinkstoananti

-Scientologysite

aftertheChurchofScientologyclaimedcopyright

infringement.Inanotherinstance,Googleapparently

handedoversomerecordsofsocialnetworkingsiteson

theserviceOrkuttotheBraziliangovernment.Yet,the

ChurchofScientologyhadalegitimatelegalclaim,and

theBraziliangovernmentwasoperatingwithinitsown

lawsininvestigatingallegedracial,homophobic,and

pornographiccontent.

Google’swebsiteexplainsthatthecompanywill

removepagesthatviolateU.S.laworthelawofahost

country,orbreachitsownWebmasterGuidelines.

Onebloggersaid,“WhileIdonotconsiderGoogle

‘evil’(Ireservethatlabelforreallybadthingsinlife),

Idothinkthattheyarethebigbullyontheblock.”27

Fromprivacytopropertyrightstohumanrights,the

scopeandinfluenceofGooglehaveledtounintended

consequences,someofthemtragic:

•Googlehascomeunderfire

forborrowingpatented

orcopyrightedmaterialwithoutpermission,and

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GOOGLESPEAKS

forallowingAdWords

advertiserstobidon

trademarkedkeywords.

•AvideowaspostedonGoogle

’sItalian

-language

siteshowingfourhighschoolboyshumiliating

anotheryoungmanwithDown’ssyndrome.

•CourtsinMumbai,India,wereconsideringwhether

terroristsusedGoogleEarthtohelpplotattacks

inthatcitythatleft170deadandmanymore

injured.

TherearenumerousareasinwhichGoogleclearly

takesthemoralhighground:

•Googlerequirescertificationtorunregulated

keywords,suchasthoserelatedtopharmaceuticals

andotherlegaldrugs.Somekeywords,suchas

thoserelatedtogamblingandhacking,arenot

allowedatall.

•FromJune2007,GooglebannedAdWordsadsfor

studentessaywritingservices.Whilemost

universitieswelcomedthemove,thereisno

restrictiononsuchsitesappearingintheregular

Googlesearchresults.

•Inanideathatisatthesametimeinformative

andpeculiarlyspooky,Googlestudiedsearcheson

cold,flu,andpaintreatmentsandmedicationsto

helpidentifyareaswherefl

uepidemicsare

occurring.

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TheVision143

TheMottoLosesSomeShine

Inthebeginning,everyonewasimpressedandeven

touchedbythenotionthatayoungcompanywouldso

diligentlyguardagainstbadbehaviorinitsownranks.

ThenasGooglegrewlikeManintheMoonMarigolds,

thequestioningbegan.

“Apparentlyacertainpercentageofanysetgroupof

peoplelooksforsignsthatcompanieswithsterlingrep-

utationsareactuallyfrontingforSatan,”writesaformer

Googleronhiswebsite.“Andofcourse,withGoogle’s

‘Don’tbeevil’mottohangingonitsbacklikea‘kickme’

sign,thecompanygotcutverylittleslack.”28

AmazonCEOandGoogleinvestorJeffBezosobserved:

“Well,ofcourse,youshouldn’tbeevil.Butthenagain,

youshouldn’thavetobragaboutiteither.”29

Googleexecutives,claimsomeobservers,havebeen

slowlyedgingawayfromthecompany’sfamouspledge.

VicePresidentMarissaMayersoundedaretreatfrom

themottowhenshedeclaredthat“Don’tBeEvil”never

wasandneverwouldbeanelectedorordainedmotto.

“‘Don’tbeevil’ismisunderstood,”saidEricSchmidt

ina2008interview.“Wedon’thaveanevilmeter...the

ruleallowsforconversation.IthoughtwhenIjoined

thecompanythiswascrap...itmustbeajoke.Iwas

sittinginaroominthefirstsixmonths...talkingabout

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GOOGLESPEAKS

someadvertising...andsomeonesaidthatitisevil.

Itstoppedtheproduct.It’saculturalrule,awayofforc-

ingtheconversation,especiallyinareasthatare

ambiguous.”30

CanFreeSpeechGoTooFar?

Puttingtheword“Jew”intotheGooglesearchboxat

onetimeinstigatedascorchingdebateonthesubjectof

ethics,morality,fairness,andunintendedconsequences.

WhenStevenWeinstock,aNewYorkrealestateinves-

torandformeryeshiva

student,searchedontheword

“Jew,”hewashorrifiedattheresults.Anaggressively

anti-Jewishwebsitecalled“JewWatch”cameupatthe

topofhissearchlist.Weinstockwentonacrusade,cir-

culatinganonlinepetitiondemandingthatGoogle

removethesitefromitsindex.

Thedilemmaisbothpainfulandcommon:Free

speechclearlyisthemarkofanopenanddemocratic

society,butinstigatinghateagainstanygroupofpeople

isbothwronganddangerous.Asunlikelyasitmay

seem,chargesfloatedontheInternetthatGooglewas

anti-Semiticandhadpurposelyplacedahate-sitehigh

initsrankings.31

Googledidnotremovetheoffensivesitefromits

index,butapparently,forawhile,includedatagatthe

topofthesearchwarningpeoplethatJewWatchcon-

tainedoffensivematerial.Someobserversclaimthat

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Googlenowhaspartiallyblockedthesite.Arecent

searchoftheword“Jew”inGoogledidnotbringthe

siteup,evenfardownthelist.However,asearchofthe

words“JewWatch”didlocatethesite,anditappeared

withouttheoffensivenesswarning.

Googleoffersthis

perspective:

IfyouuseGoogletosearchfor“Judaism,”“Jewish,”or

“Jewishpeople,”theresultsareinformativeandrele-

vant.Sowhyisasearchfor“Jew”different?Onerea-

sonisthattheword

“Jew”isoftenusedinan

anti-Semiticcontext.Jewishorganizationsaremore

likelytousetheword“Jewish”whentalkingabout

membersoftheirfaith.Thewordhasbecomesome-

whatchargedlinguistically,asnotedonwebsites

devotedtoJewishtopicssuchasthese.32

NotallJewishpeopleobjecttobeinglabeledasJews,

andnotallbelievethatGoogleshouldblockthesite.

“Someresponsibilityforthisneedstorestonourown

shoulders,”saidJonathanBernstein,aregionaldirector

oftheAnti-DefamationLeague,“andnotjustacompany

likeGoogle.Wehavetoprepareourkidsforthingsthey

comeacrossontheInternet.Thisispartofthenatureof

anInternetworld.Thedisadvantageisweseemoreofit

andourkidsseemoreofit.Theadvantageis,wesee

moreofit,sowe’reabletorespondtoit.I’mnotsure

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GOOGLESPEAKS

whatpeoplewouldwanttoseehappen.Youcouldn

reallyaskGooglenottolistit.”33

GoogleWatchwrote:“It’snotthatwebelieveGoogleis

evil.WhatwebelieveisthatGoogleInc.isataforkin

theroad,andtheyhavesomebigdecisionstomake.”34

(Formoreonthedebateregardingrightandwrong,

seethechapter“GoogleGrowsUp.”)

MAKEITFREE

Googlehasahistoryofenteringbusinessesinwhich

othercompaniesareengaged,butofferingtheservice

free.Thisispossible,duetothecolossalrevenues

Googlecollectsfromrelevantadvertising.

“Frankly,”

saysEricSchmidt,

“thefreeservicemodelwith

advertisingisstillthebestmodel.

”35Theadvertising

itselfisn’tfree,ofcourse,butitisreasonable.

Overtime,Googlehaschallengedalmostallthemajor

playersinthesoftwareandInternetworld,andtruly

frightenedthecompetitorswiththefreebies.Google’s

productivityprograms,whichoperatefromtheWeb,are

adirectattackonMicrosoft.Microsoftisn’ttheonlycom-

panythatfeelscompelledto

takeadefensivestance

whereGoogleisconcerned.GoogleBase—acollection

ofsoftware

—threatenedcraigslist,eBay,Monster,and

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TheVision147

Tribe.net.GoogleBooksfrightensauthors,publishers,

bookstores,andespeciallyAmazon.

Someofthecomplimentaryprogramsdon’tseemto

havemuchimpact.Googleofferedafreecouponpro-

gramtoitsadvertisers,linkedtoproductandservices

searchesusingGoogleMaps.Fewcompaniesusethe

service.

Inmanycasesitisn’tclearwhyGoogleisofferingthe

no-chargeservices.GoogleVoiceLocalSearch,acti-

vatedbycallingtoll

-free1

-800-GOOG-411,hasno

apparentadvertisingattached.Atbest,itseemslikean

experimentinvoice-activatedsearch.

Evenso,Google’scost-

freeprogramscreatebuzzand

goodwill.Justintimeforthe2008BeijingOlympics,

Googleannouncedamusicsearchanddownloadserv-

iceinChina—free,ofcourse.

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GoogleCulture

Companyculturesarelikecountrycultures.Nevertrytochange

one.Try,instead,toworkwithwhatyou’vegot.1

—PeterDrucker,lateauthorandmanagementguru

TheGooglewebsiteproclaimsthatalthoughthecom-

panyhasgrownrapidly,itmaintainsasmall-company

feel.Thatiswishfulthinking.Googleplexisacolorful,

compellingcampus,butwithitsdozensofbuildings

spreadoverahalf-dozen

cityblocks,itisanythingbut

intimate.

WhenaskedhowGooglehadchangedsinceitsincep-

tion,DirectorofTechnologyCraigSilversteinsaid:

“IusedtoknoweveryoneatthecompanyandnowIdo

not.Itmakesmesad.”

Googleissupportedbyworkersinscoresofoffices

aroundtheUnitedStatesandtheworld.TheSanta

Monicaofficedefinitelyhasthelookandfeelofabranch

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GoogleCulture149

office.ThereisnothingcozyabouttheEuropeanhead-

quartersinDublin—twohigh-risesinanindustrialarea.

Giventhewebsite’sachievements,itwasboundtohap-

pen.Googlehasoutgrown

thisdreamoffeelingsmall

whilebecomingmassive,butthecompanymaintainsa

distinctiveculture,nonetheless.

Eventhoughtheculturehaschanged,Silverstein

added,“thebasicprinciplesthatunderlieGoogleboth

intermsoftheproductsandhowweruninternallyasa

companyhavenotreallychangedsinceitstarted.

Silversteinsaysthecompanystillbelievesworkshould

befunandthatitremainsatechnology

-focusedand

-drivencompany.

LarryPagebelievesthataslongasGoogleorganizes

itselfintonaturalor“right-sized”workinggroups,the

company’sspiritandculturewillhold.

Sergey,ontheotherhand,

says,“Iactuallydon’tthink

keepingthecultureisagoal.Ithinkimprovingthecul-

tureis.Weshouldn’tbelike,lookingbacktoourgolden

yearsandsay,‘Oh,Iwishitwasthesame.’”3

NEWMANAGEMENTSTYLE

Theirventurecapitalistscloselywatchedtheyoung

businessenterprise

’sdevelopmentandpressedthe

founderstoaddanothermembertotopmanagement,

butSergeyandLarrytooktheirtimerecruitingachief

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GOOGLESPEAKS

executiveofficer.Eventuallytheyfoundonewhosuited

them.Atfirst,theydidn’tgivehimthechiefexecutive’s

title,butintime,EricSchmidttookontheCEOposition,

withtheGoogleboysservingasco-presidents.Schmidt

handlesalmostallthekeyreports.LarryandSergeyare

thenfreetopursuethecreativesideofthebusiness.

Thisdoesn’tmean,

however,thatBrinandPagewere

willingtorelinquishcontrol.ItisunderstoodatGoogle

thatthefoundershavethefinalsayonallmajordeci-

sions.Apparently,gettingtheweigh-ingetsmorediffi-

cultasthepresidentsbecomeincreasinglybusy.

LarryexplainedhowthetriumviratethatrunsGoogle

works:

ErichasthelegalresponsibilitiesoftheCEOand

focusesonmanagementofourvicepresidentsandthe

salesorganization.Sergeyfocusesonengineeringand

businessdeals.Ifocusonengineeringandproduct

management.Allthreeofusdevoteconsiderabletime

tooverallmanagementofthecompanyandotherfluc-

tuatingneeds.4

“Thegoalofthecompanyisnottomonetizeeverything.

Ourgoalistochangetheworld.Monetizationisatech-

nologytopayforit,”5saysEricSchmidt.Andyet,two

wordsheardrepeatedlyaroundGooglearescaleand

monetize.Thesewordsspeaktothequestions,Can

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GoogleCulture151

aserviceortechnologybegrownbigenoughtomakeit

worththeeffort,andcanitbemadeprofitable?

Googlehasfacedthesameproblemsthatotherfast

growingstartupshaveencountered.Amongthemare

howtomanagegrowthwithoutlosingyoursoul;howto

keepideasfresh;andhowtokeepbrightemployeesand

avoidhiringmediocrepeople.

DavidFriedberg,afoundingmemberofGoogle’scor-

poratedevelopmentteam,explainedthatgoodhiringis

keytoGoogle

’ssuccess.

“Therearecertainkindsof

peoplewhereit’snotaboutthemoney.AndGooglehires

thosekindsofpeople.”FriedbergleftGoogletostarthis

ownInternetcompany,WeatherBill.6

Afterthecompanywasafewyearsold,Sergeyand

Larryrealizedtheirmanagementstructurehadbecome

toocomplex.Byautumn2001,thecompanyfelttop

heavyandunwieldy.Theycalledtheirengineering

managerstoameetingandtoldthemtheywereoutof

jobs.Mostgothiredinotherdepartments.Thecompany

wasreorganizedintosmallteamsthatattackedhun-

dredsofprojectsallatonce.

Thefoundersgivetheemployeesgreatlatitude,and

theytakethesamelatitudeforthemselves.Sometimes

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GOOGLESPEAKS

theyshowupunexpectedlyforthewrongmeeting.

Sometimestheydisappearentirely—zoomingawayin

thecorporatejetortakingabreaktogokitesurfing.7

Althoughtherearemeetings

goingonalloverGoogle

campusesallthetime,TerryWinograd,Larry’sacademic

advisoratStanford,says,“LarryandSergeybelievethat

ifyoutrytogeteverybodyonboarditwillpreventthings

fromhappening.Ifyoujustdoit,otherswillcome

around

torealizetheywereattachedtooldwaysthatwerenot

asgood—noonehasproventhemwrong—yet.”8

EricSchmidtsaysthatGooglemerelyappearstobe

disorganized.“Wesaywerunthecompanychaotically.

Werunitattheedge.”9

EricSchmidtsaysthatcuriosityandprobingplayalarge

partinGoogle’smanagementstyle.

Amongthefrequentlyaskedmanagementques-

tionsare:

•Howdowemaketheproductswehavethemost

useful?

•Whatisthebestlong-termpathforthecompany?

•Whatarethenextbigbreakthroughsinresearch?

•Howisthecompetitionaffectingourbusiness?

“Outoftheconversationcomesinnovation,”Schmidt

notes.“InnovationisnotsomethingthatIjustwakeup

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GoogleCulture153

onedayandsay‘Iwanttoinnovate.’Ithinkyougeta

betterinnovativecultureifyouaskitasaquestion.”10

DespiteLarryandSergey’squick,smartpersonalities

andtheirrollerbladingapproachtobusiness,David

Friedbergsaidtheyneverforgotthattheywererun-

ningacompany.“Attheendoftheday,itisacompany

andthereareproducts,andyouhavetodeliverthe

products.”11

TENTHINGSGOOGLEHASFOUNDTOBETRUE

WhenacompanygrowsasmadlyasGooglehas,itis

usefultohavesimplebutgrandguidingprinciplesto

keepeveryonemovinginthesamedirection.Employ-

eesfindthatthese10principles,displayedonGoogle’s

website(underCorporateInformation),helpthem

makedecisionsandproductsthattrulyareGoogly.

Focusontheuserandallelsewillfollow.The

companystrivestoputtheuseraheadof

shareholderswhenmakingcorporatedecisions.

Additionally,Googlemakesthesepromises:

•Thewebsiteinterfacewillbeclearandsimple.

•Pageswillloadinstantly.

•Placementorrankinginsearchresultsisnever

soldtoanyone.

•Advertisingmustberelevanttothesearchand

notbedistracting.

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GOOGLESPEAKS

It’sbesttodoonethingreally,reallywell.

“Googledoessearch,”thecompanyusedtosay.

AsGooglegrowsandlaunchesnewproducts,it

driftsfartherandfartherawayfromthismaxim.

Still,thecompanyclaimsthatotherproducts

suchasGmail,GoogleDesktop,andGoogle

MapsarejustpartofGoogle’sefforttoimprove

search.

Fastisbetterthanslow.“Googlebelievesin

instantgratification,”itsays,addingthat“Google

maybetheonlycompanyintheworldwhose

statedgoalistohaveusers

leaveitswebsiteas

quicklyaspossible.”

DemocracyontheWebworks.“Googleworks

becauseitreliesonthemillionsofindividualpost-

ingwebsitestodeterminewhichothersitesoffer

contentofvalue,”explainsGoogleonitswebsite.

Thishasalsobeenreferredtoas“thewisdomof

crowds.”

Youdon’tneedtobeatyourdesktoneedan

answer.ThisiswhyGoogle

branchesintotech-

nologytomakesearchavailableonPDAs,on

mobilephones,andinautomobiles.

Youcanmakemoneywithoutdoingevil.Thisis

themostdifficultand

controversialofGoogle’spre-

cepts.Foranexplorationoftheidea,gotothesec-

tion“Don’tDoEvil”inthechapter“TheVision.”

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GoogleCulture155

There’salwaysmoreinformationoutthere.

GooglehasindexedmoreWebpagesthan

anyothersearchservice,anditcontinuallyadds

moresearchablematerial.Thisisnotonlydesira-

ble,itisnecessaryastheWorldWideWeb

expands.

Theneedforinformationcrossesallborders.

MorethanhalfofGooglesearchresultsaresentto

usersoutsidetheUnitedStates.Searchresultsare

availableinapproximately118languages,and

Google’stranslationservicesimprovecontinually.

Youcanbeseriouswithoutasuit.Nothingproves

thatmorethanSergey’sandLarry’sattire.Most

oftentheyareseeninLevi’sandt-shirts,some-

timeswearingCrocsandals.Eventheheadoftheir

Parisoffice,workingfromaclassyaddressnear

theopera,wearsLevi

’stowork.Recentlythe

Googleboyshavebeenknowntothrowsports

jacketsovertheirt-shirts.

Greatjustisn

’tgoodenough.Googletellsits

employees,“Alwaysdelivermorethanexpected.”

Googledoesnotacceptbeingthebestasanend-

point,butastartingpoint.

(Note:TheTenTrueThingsareGoogle’s.Theexpla-

nationsareadaptedfromGoogle’swebsiteandother

sources.)

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GOOGLESPEAKS

RIDINGTHELONGTAIL

“Ourbusinessmodelisthelongtail,”saidoneGoogle

employee.“Managementtalksaboutitallthetime.”12

Long-tailmarketing,whichwasfirstpracticedby

Sears,Roebuck&Companywithitsbigwish-bookcata-

logs,hasbeendevelopedtoadouble

-banglevelby

Internetmarketingcompanies

—Googleinparticular.

Thelong-tailmodelgetsits

namefromstatisticalcurves,

suchasthefamiliarbellcurveortheParetocurve.

Thecurvestartsatzeroandrisestoapeak,thendrops

andflattens.Butitalmostneverreturnstozero.Thetail

endofthecurvemayleveloutandgoonseemingly

forever.

Insalesormarketinggraphs,thetopofthecurvetyp-

icallydescribesacompanythathashighsales,butusu-

allywithalimitednumberoftop

-sellingproducts.

Long-tailInternet

companies,whichcansellfromhuge

inventoriesbecausethey

’renotactuallywarehousing

thegoods,mayindeedmakemoneyfromsellingthe

mostpopularproducts,buttheyalsohavethecapacity

toextractendlesssalesfrom

morespecialized,obscure,

evenweirdproducts.Inhisbook,TheLongTail:Why

theFutureofBusinessIsSellingLessofMore,Chris

Andersoncallsthis“marketswithoutend.”13

EricSchmidtexplainedatthecompany’sfirstannual

meetingin2004thatGoogle’sadvertisingprogramwas

solucrativebecauseitcapturesthehighendofthe

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GoogleCulture157

curve,byservingthefewlargeadvertisers,andthen

followsthetailbyservingthemillionsofsmalladvertis-

ersallthewaydowntoaone-personoperation:

Thesurprisingthingaboutthelongtailishow

longthetailis,andhowmanybusinesses(atthefar

endofthetail)haven

’tbeenservedbytraditional

advertisingsales.Therecognitionthatbusinessessuch

asoursshowaParetodistributionappearstobea

muchdeeperinsightthatanyonerealized.

OnceGooglemanagementunderstoodhowmuchofthe

curve(especiallythemiddle)couldbetappedandmax-

imized,itfoundanamazingnumberofwaystoplaythe

long-tailgame.

20PERCENTPROJECTS

“Weencourageouremployees,inadditiontotheirreg-

ularprojects,tospend20percentoftheirtimeworking

onwhattheythinkwillmostbenefitGoogle,”saysLarry

Page.“Thisempowersthemtobemorecreativeand

innovative.Manyofoursignificantadvanceshavehap-

penedinthismanner.For

example,AdSenseforCon-

tentandGoogleNewswerebothprototypedin

percenttime.’Mostriskyprojectsfizzle,oftenteaching

ussomething.Otherssucceedandbecomeattractive

businesses.”14

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GOOGLESPEAKS

Themuch-applaudedfree-timeprojectsgiveemploy-

eesasenseofautonomy

—onewayofkeepingsmart

peoplecommittedasthecompanygrowsmorebureau-

cratic.“Ascompaniesgrowlarger,it’smoredifficultto

allowpeopletobecreative,”acknowledgedCraigNeville-

Manning,Google’sengineeringdirector.15

Sadly,astheworldbusinesswentintoadeclineand

Googleprepareditselftoweathertheeconomicstorm,

therewereindicationsthatthe20percenttimesmight

becurtailed.Schmidtsaidthatengineersmaynotgeta

lotoftimeandalotofpeopletoworkondreamprojects.

“Whenthecyclecomesback,”hesaid,“wewillbeable

tofundhisbrilliantvision.”16

Intheautumnof2008,Googleexecutivesandanumber

ofstateandlocalpoliticosgatheredatGrandCentral

TerminaltoadmireademonstrationofoneofGoogle’s

mostpopular20percentprojects—Googlemapsforthe

publictransitsystem.

Googlewasallowedtoinstalltendemonstration

kiosksinthetrainstation

showingthebestwaystoget

aroundNewYorkCity

’ssprawling5,000

-square-mile

subway,bus,andtrainnetwork.

Thepublictransitmappingsystemwasfirstintro-

ducedin2006,andLosAngeles,CaliforniaandAustin,

Texasweresoonaddedtothecitieswhereitwas

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GoogleCulture159

available.Thegreater

challengecomesasthemore

complexurbanareassuchasLondon,Tokyo,andParis

aremapped.

TheprojectwasthebrainchildofCalifornia

-based

AvichalGargandChrisHarrelson.WhenNewYork

transit

offeredGoogletheinformationneededtocreatethemaps,

GargandHarrelsonweren’tpreparedforthesheervol-

umeofmaterialtheywouldreceive.Theyweren’tsure

theyshouldcontinuewithit.MarissaMayer,Google’s

presidentforsearchproductsanduserexperience,told

them,“Justtakethedata.”17Theprojectgotdonewith

cooperationfromemployeesinEuropeandJapan.

PERPETUALBETA

It’snotexactlyamotto,but

it’saphrasefrequentlyheard

inGooglecircles:“Launchearly,iterateoften.”

Googlesometimesischidedforreleasingmostofits

productsinbeta,orduringdevelopment,andkeeping

themthereforalongtime.Ontheminusside,this

makesitseemthatGoogleengineerscan

’tperfecta

product;theyrelyontheuserstodothatforthem.It

alsoservesasausefulexcuseifaproductisflawed.It’s

stillinbeta,afterall.

Ontheplusside,userstend

todoagoodjobatper-

fectingproducts,andGooglecanusethepolicytomain-

tainahighlevelofinnovation.

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GOOGLESPEAKS

“Theideathatyou’recontinuallyimprovingtheprod-

uct,thatyou’recontinuallyadvancingit,Ithinkiscriti-

caltotheworldoftechnology,andthekindofconsumer

technologythatGoogledoes,

”saidPaulBuchheit,the

leadengineerwhodevelopedGmailforGooglebefore

foundinghisownstartup,FriendFeed.

Iftheyjuststandstill,they’regoingtoveryquicklylose

theirposition...butbeyondthat,there’stheriskthatas

aninstitutionyoucanforgethowtoinnovate,which

canbedeadly,becausenewcompetitorscancomealong

andyouwon’tbeabletocatchupwiththembecause

you’veforgottenhowtoinnovate.It’scrucialthatacom-

panymaintainsacontinual

cultureofinnovation.18

FABLEDWORKPLACE

Fortuneisjustoneofseveralpublicationstohaverated

Googlenumberoneonitslistofbestplacestowork.

Googlehasbecometheworld’semployerofchoice,

themarkofanewand

desiredworkenvironment,

andtheidealagainstwhichothercompaniesaremeas-

ured.Andwhynot?Despitetheliberalsharingofprofits

andaslowdownintheworldeconomy,Googlecontin-

uestodointerestingworkandmakemoney.

Dependingontheofficelocation,thecompanypro-

videslaundryequipmentforallthosebluejeansand

t-shirts.Employeescangethaircuts,havetheoil

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GoogleCulture161

changedintheircars,andgetworkoutswithinaquick

walkfromtheirdesks.Therearemassages,volleyball

courts,swimmingpools,andfood—lotsoffood.Google

evenhasitsowncricketclubatitsofficeinHyderabad,

India.

DressingcasuallyisalmostarequirementatGoogle.

Mostworkers,includingthoseinFranceandIreland,

wearbluejeanstowork.Despitethecasualatmosphere,

EricSchmidtsaysthattheruleis,workersmustat

leastwearsomething.The

styleisbestdescribedas

“disheveledstudent.”19

GoogletakesprideinitsEmployeeResourceGroups

(ERGs)suchasGoogleWomenEngineers,BlackGoogle

Network,andevenGayglers.Gayglersincludethecom-

pany’sGLBT(gay,lesbian,bisexual,andtranssexual)

employees.“Google’sERGs,”writesthecompanyonits

website,

“createnetworkswithinthecompanythat

reachacrossfunctionalandnationalboundariesto

strengthenthecompany’sretentionprograms.Theypro-

videvaluablefeedbackabouttheworkingsofGoogle’s

HRprogramsandpolicies,aswellasprovidevaluable

opportunitiesforpersonalgrowthandprofessional

development.”

Thentherearethestockoptions.Theselucrative

perkspresentadilemmainthattheybothkeepemploy-

eesatthecompanyandeventuallyallowthemtofly

awayandeitherlivefreeorstarttheirownbusinesses.

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GOOGLESPEAKS

Oneemployeesaidheappreciatesalloftheperks,

butwhatheenjoysmostisworkingwiththebestand

brightestpeopleinhisfieldinacollegial,cooperative

atmosphere.StanfordPh.D.saresocommon,he

said,thatthosewhohaveearnedthemdon

’tget

muchinbraggingrights.“Itrainedasabusinessana-

lyst,”heexplained.“WhenIjoinedGooglemycompu-

terskillsweren’tonaplanewiththeengineers.Butthey

weregreatinhelpingmelearnwhatIneededto

know.”

TheGoogleworkplaceoftodayisshapedbymany

factors—theexpectationsofLarryandSergey’sgenera-

tion,thecompany’slocationinSiliconValley,andan

academic-richenvironment.Eventhepersonalhisto-

riesofthefounderscarryweight.LarryPageplaces

enormousimportanceonbeingagoodemployer.

“Mygrandfather,

”explainedPage,

“workedinthe

autoplantsinFlint,Michigan.Hewasanassembly-line

worker.Duringthesit-downstrikesheusedtocarry

thislongironpipewithabigchunkofleadontheend

whenhewalkedtowork.”20Hedidit,Pagesaid,topro-

tecthimselffromthecompany.“Istillhavetheham-

mer.That’stwogenerationsago,andwe’vecomealong

way.Idon’tthinkanyofouremployeeshavetocarry

suchweaponstowork.”21

Many,includingPagehimself,contendthatGoogle

hasmuchtogainfromtreatingitsworkerswell.“It’s

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GoogleCulture163

commonsense,”saysLarry.

“Happypeoplearemore

productive.”22

Googledidn’tinventthecasualworkplace.Ithasbeen

aSiliconValleytraditionformanydecades,butthecom-

panybroughttheconcepttonewlevels.TheGoogle

guyshavetriedtokeepthe

Googleworkenvironment

muchlikeacollegecampus,onlywithbetterservices.

SincethesoftwareandInternetcompaniesarecon-

stantlycompetingfortalent,whateverGoogledoes,

othercompaniesaremotivatedtodoaswell.

Notalloftheperksarepermanent,though.Google

onceoffereda$5,000subsidyforthosewhoboughta

hybridcar.WhileGooglewantedtoencourageclean

technologies,itwasneverthecompany’sintenttokeep

thesubsidyforever.23As

theeconomicdownturnof2008

hit,evenGoogletighteneditsbelt.

ANALTERNATIVEPOINTOFVIEW

AfterFortunenamedGoogleasthe“NumberOneBest

PlacetoWork”in2008,aformeremployeewhocalled

herself“Lisa”saidthisaboutworkingforGoogle:

Googleshouldnotbeonthislist.Iseeyouguysput

performanceofthecompanybeforeanythingelse.

Theperksarejustasmokescreen.Seriously.Iusedto

workthereanditwaslikepropaganda...theyused

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GOOGLESPEAKS

totellustospreadthewordconstantlytoourfriends,

etc.aboutthefreefood,massages!etc.

First,ifyouwanttodowellatthecompanyyoucan’ttake

alonglunch.Takingmorethanhalfanhourislooked

downupon.Andyoujustendupeatingatyourdesk.It’s

there,butnotreallythere.Asformassages,there’sasix-

monthwaitlisttoeven

scheduleoneandbythetimeit

rollsaroundthere’sa90percentchancethatyouwon’tbe

abletomakeitbecauseofascheduledmeeting,etc.

Lastly,themanagersarehorrendous.Thereisno

internalsystemofreviewing

them.I’veheardhorror

stories.24

Anotheremployee,whowishedtoremainanonymous,

didnotechoLisa

’scomplaint.Hefeltthathiswork

wasexcitingandimportant

andthatmanagementwas

accessible.However,hewasmorethananhourlatefor

adinnermeetingwiththeauthorbecauseevenat

6:30p.m.hecouldn’tgetoutofGoogleplex.Heisthefirst

toadmitthatworkinglonghoursisthenormforhim.

AGooglespokesmanofferedthisinsight:

“Itisa

workplace,afterall.”

GOOGLEPLEX

OnasunnydayinSeptember,oneoftheGoogledevel-

opmentteamswalkedoutof

Googleplex,thecompany

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GoogleCulture165

headquarters,andcrossedthegrassycampustoembark

onateam-buildingtrekalongtheSanFranciscoinner

bay.Astheyheadedouttothenaturepreserve,they

spottedameetinginprogressonaconferencebicycle,a

circularcontraptionthatallowsmultipleriderstopedal

andtalkwhilethefrontridersteers.Theyskirtedthe

busesthatlinedsurrounding

streets,waitingtoshuttle

thousandsofemployeesbackandforthtoworkfrom

homeswithin50milesofheadquarters.Theytooknote

ofaGooglepicnicsettingupinanadjacentpark,marked

byhugeballoonrainbowsinGooglecolors.Theywere

passedbyGooglersonbikesheadingtootherbuildings

onthesprawlingcampus.

Googleanditsculturehastakenoverthetown,espe-

ciallytheeasternedgeofhomeylittleMountainView.

Googlenowoccupies30buildingstherewithanexcess

ofthreemillionsquarefeetofofficespace.Thisismore

thanathirdofMountainView’savailableofficespace,

andthoughgrowthatGooglehasplateaued,

thecompanyhascontingentplansforevenmoresquare

footageifneeded.Because

manyofGoogle’sbuildings,

includingitsheadquarters,areonlandleasedfromthe

city,theyarewelcometenants.In2007,MountainView

receivedabout

$3.8millioninrevenuefromGoogle

leases.25

IfLarryandSergeyarethetwinKingArthursofthe

techworld,GoogleplexisitsCamelot.Itservesasa

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GOOGLESPEAKS

modernroyalcourt.Googleplexisloadedwithameni-

tiesthatappealtoyoungoryoung-in-brainGooglers.

Thereisasandvolleyballcourtandcrazyoutdoorart.

Googleevenhasitsownlifeguards.MountainView

ordinancesrequirethemforthetwoswim-against-the-

currentpools.

Employeescangetfull-timemedicalcareandfree

physicals,andtherearedesignatedprivatespacesfor

nursingmothers.Thecompanyonceofferedlow-cost

childcare,butthepricewentuponthat.Orhowabout

anapononeofthestrategicallyplacednappads?Work-

erscanbringtheirdogs,aslongasthemuttsbehave.If

itseemsasthoughGooglersdon’thavetimetowork,

checkouttheMcDonald

’s-stylepitfilledwithmulti-

coloredplasticballs.It’sthereforholdingmeetings.

Mostofall,Googleplexisknownforitsfreeandfabu-

lousfood.Therearesnackrackseverywhere,three

gourmetmealsaday,andhomefooddeliveryfornew

parents.26ItisestimatedthatGooglewasspendingas

muchas$72millionayearfeedingemployees,atabof

approximately$7,530perGoogler.27

Itbecameamajorcrisiswhenitsoriginalexecutive

chef,CharlieAyers,lefttostarthisownrestaurant.

Googlespentthreemonthstryingtofindareplacement

forCharlie,whoonce(occasionally)cookedforthe

GratefulDead.Googlefoodisimaginative,tosay

theleast,andeveryonewantedittostaythatway.One

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GoogleCulture167

cheftryingoutforAyers’jobservedsugar-piepumpkin

lasagnaandcedarspringlambchops.

Evenwithoutallthepampering,freebies,andtoys,

Googleheadquarters,infuturisticbuildingsthatonce

housedSiliconGraphics,isapleasantplacetowork.A

vegetablegardengrowsinthecentralquad,withthe

outputusedinthecafeterias.

Larry,adevotedgadgeteer,oncerodeaSegwayper-

sonaltransporteraroundthecampus.Segwayswere

firstreplacedbyelectricscootersandthenbybicycles.

Needlesstosay,thebicyclesarecheaperandmoreenvi-

ronmentallysound,andtheybecameespeciallyimpor-

tantasworkersfoughtthe“

Google10(or20)”pounds

theygainedeatinginthecafeterias.

Itiseasytofindthecafeteria,thelavalamps,andthe

lapdogsatGoogle’sMountainViewheadquarters,but

it’snotaseasytofindthe

subtlyhidden-awayofficesof

SergeyandLarry.

TheofficelongsharedbyLarryandSergey,withEric

Schmidtnearby,istuckedintoacornerofBuilding

Number43.Theirspaciousworkhomeispredictably

deckedoutwithsnazzytechnology.Rowsofflat-screen

monitorslinethewallswithelectroniccalendars,e-mail,

financialinformation,andtheGooglesearchengine.

Thefoundershavemedicineballsforergonomicsand

massagechairsfor

relaxation,pluswindowsonthebus-

tlingworldofGooglebelowthemandoutside.

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GOOGLESPEAKS

GOOGLEINIRELAND

NotallGooglefacilitiesareasglamorousandfree-

wheelingasGoogleplex.TheSantaMonicafacilityisa

standardSouthernCaliforniaofficebuilding,although

Google-stripedumbrellasfluttergailyonarooftoppatio,

andtheofficeisalluringlynearthebeachandfamed

SantaMonicaPier.

PerhapstheDublin,Ireland,officebestepitomizes

whattheGoogleculturehasbecomeintheworld.

Google’stwintowersriseaboveasmallstreetinDub-

lin’sformerlyderelictDocksidearea.Justafewyears

ago,theneighborhoodwasnothingbutafewscattered

smallbusinessessurroundedbydecayingwarehouses.

TheareacametolifeaftertheIrisheconomyexploded.

WiththeadventoftheCeltic

Tiger,newbusinesseswent

lookingforbigger,moremoderndigsthanwereavaila-

bleinotherpartsofthelovelyGeorgiancity.

MostGooglefacilitiescanbeidentifiedbythetelltale

stripedumbrellas.TheDublinofficeisanotable

excep-

tion.TheIrishweatherdiscouragesoutdooreating

spaces.Onmanydays,Googlershuddleindoorwaysand

buildingoverhangs,smokingoutofthedrizzle.Here,as

inCalifornia,theworkforceisyoung,intense,andinvar-

iablydressedinLevi’sandt-shirtsorsweaters.

Luredbyayoungandinternationalworkforce,notto

mentiongeneroustaxbreaks,GoogleopeneditsDublin

officein2004with150people.ItnowisGoogle’slargest

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GoogleCulture169

facilityasidefromtheheadquartersinMountainView.

Asophisticatedglass-and-steelbuildinginthemiddleof

ahistoriccity,theEuropeanheadquartersisnowhome

to1,350employees.Dozensoflanguagesarespokenat

thetechcenter,andcolorfulflagsofmanycountries

hangfromtheceilings.

Nevermindthepaucityofsunnyoutdoordiningareas

andcolorfulumbrellas;GoogleIrelandstilldisplaysthe

requisitelavalamps,exerciseballs,andahugescreen

inthelobbythatshowssearchactivityasitoccurs

aroundtheglobe.

Google,likeotherU.S.companiessuchasFacebook

andDell,wasdrawntoIrelandbecauseitoffersavery

lowcorporatetaxof12.5percent.Evenso,otherlevies,

suchasthetaxforhavingatelevisionset,canbequite

high.TherestaurantfoodtaxinDublin,forexampleis

around13percent,whilethetaxonalcoholicdrinks

isabout21percent.

Despitetheweatherandtheconsumptiontaxes,

GooglecontinuestoexpandinDublinanditsenvirons.

EvenduringtheIrishrecessionthatbeganin2007,

Googleaddedemployeesthere.

TOPTENREASONSTOWORKATGOOGLE

Whilesomeformeremployeesandcompanycritics

claimthatGoogleoverpromotesitsglossyworkplace

andstimulatingatmosphere,itisrefreshingtohavea

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GOOGLESPEAKS

companythatatleastthinkssomuchaboutthequality

ofworklifeandmakesavoluntaryefforttovalue

employeesandtreatthemwithrespect.ThisisGoogle’s

ownlistofemployeebenefits:

Lendahelpinghand.Withmillionsofvisitorsevery

month,Googlehasbecomeanessentialpartof

everydaylife—likeagoodfriend—connectingpeople

withtheinformationtheyneedtolivegreatlives.

Lifeisbeautiful.Beingapartofsomethingthat

mattersandworkingonproductsinwhichyoucan

believeisremarkablyfulfilling.

Appreciationisthebestmotivation,sowe

createdafunandinspiring

workspaceyou’llbe

gladtobeapartof,includingon-sitedoctorand

dentist;massageandyoga;professionaldevelop-

mentopportunities;shorelinerunningtrails;and

plentyofsnackstogetyouthroughtheday.

Workandplayarenotmutuallyexclusive.Itis

possibletocodeandpassthepuckatthesametime.

Weloveouremployees,andwewantthemto

knowit.Googleoffersa

varietyofbenefits,includ-

ingachoiceofmedicalprograms,company-matched

401(k),stockoptions,maternityandpaternityleave,

andmuchmore.

Innovationisourbloodline.Eventhebesttechno-

logycanbeimproved.Weseeendlessopportunity

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GoogleCulture171

tocreateevenmorerelevant,moreuseful,and

fasterproductsforourusers.Googleisthetechnol-

ogyleaderinorganizingtheworld’sinformation.

Goodcompanyeverywhereyoulook.Googlers

rangefromformerneurosurgeons,CEOs,andU.S.

puzzlechampionstoalligatorwrestlersandformer

Marines.NomatterwhattheirbackgroundsGoog-

lersmakeforinterestingcubemates.

Unitingtheworld,oneuseratatime.Peoplein

everycountryandeverylanguageuseourprod-

ucts.Assuchwethink,act,andworkglobally—

justourlittlecontributiontomakingtheworlda

betterplace.

Boldlygowherenoonehas

gonebefore.There

arehundredsofchallengesyettosolve.Yourcrea-

tiveideasmatterhereandareworthexploring.

You’llhavetheopportunitytodevelopinnovative

newproductsthatmillionsofpeoplewillfind

useful.

Thereissuchathingasafreelunchafterall.In

fact,wehavethemeveryday:healthy,yummy,and

madewithlove.

THEBATTLEFORBRAINPOWER

Kai-FuLee,aChinese

-borncomputerscientist,got

caughtinGoogle/Microsoftcrossfi

reasthetwo

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GOOGLESPEAKS

companiesbattledforhisservices.LeewasMicrosoft’s

vicepresidentofinteractiveserviceswhen,in2005,he

wasluredawaytoestablishGoogleChina.Microsoft

suedGoogle,sayingthatLeewasinviolationofaone-

yearnoncompete-clauseagreementhehadsignedwith

Microsoft.ThecourtsallowedLeetogotoworkfor

Googlebutpreventedhimfromparticipatinginprojects

thatoverlappedwithMicrosoft’suntilthecasewasset-

tled.MicrosoftandGoogle

settledoutofcourt,andLee

stayedwithGoogleinChina.

AccordingtotheZdnetwebsite,Leewrotealetterin

Chineseexplainingthat

“Microsoftisanoutstanding

company,andtherearemanythingswecanlearnfrom

it.ButGoogleisacompanythatmakesmefeelashock.

ThereasonGooglegivesmeashockisthepassionfor

creatinganewgenerationoftechnology.Ifoundtreas-

uresinGoogleeverywhere.Thetechnologyandprod-

uctsarewaybeyondjustthesearch.”

Attheendoftheletter,Leegavehisformulaforwhy

Googlewashischoice:

youth+freedom+transparency+newmodel+the

generalpublic’sbenefit+beliefintrust=TheMiracle

ofGoogle28

TheInternetandallofitstrillionsofwebsites,

includingGoogle,representintellectualcapital.The

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GoogleCulture173

tangibleassetsofcompanieslikeGooglearenegligible

comparedtotheirpreciousinventoriesofbrainsand

imagination.

LarryandSergey’sesteemforloftyacademicachieve-

mentwaspresentearlyon.Whentheyaddedmembers

totheboardofdirectorsin2004,Larryproudly

announcedtheircredentials:

JohnHennessyisthePresidentofStanfordandhasa

Doctoraldegreeincomputerscience.ArtLevinsonis

CEOofGenentechandhasaPh.D.inbiochemistry.

PaulOtelliniisPresidentandCOOofIntel.Wecould

notbemoreexcitedaboutthecaliberandexperience

ofthesedirectors.29

WhenGooglewasinitsinfancy,thebestsearchengine

aroundwasAltaVista.However,itsowneratthetime,

Hewlett-Packard,didn’t

seemtoappreciatethetalent

theyhadonboard.Googleendeduphiringmany

AltaVistaengineers,whomadeenormouscontributions

toGoogle’ssuccess.

OneofGoogle

’squietstrategieshasbeentolearn

fromearlierInternetfailures,especiallyNetscape.Both

EricSchmidtandOmidKordestanicametoGooglefrom

thatcompany,whichexperiencedawildridebothup

anddown.“Google,beingagenerationlater,wasable

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GOOGLESPEAKS

tolearnfromwhatNetscapedidwellandbuildonit,”

explainedKordestani.“Thebestdéjàvuisworkingwith

thedistinguishedNetscapealumniatGoogle.”30

Ina2005coup,GooglehiredWorldWideWebpioneer

VintCerfasvicepresidentanditsresident

“Internet

evangelist.”Cerf,formerlywithDARPA(Defense

AdvancedResearchProjectAgency),ofteniscitedasthe

“fatheroftheInternet.”AtGoogleheservesassome-

thingofafuturist,thinkingabout,anticipating,andpre-

dictingtheeffectsoftheWorldWideWebonsociety.

ChrisLavoie,aCanadianwhoexpectedtobecomea

universityprofessorbutnowworksatGoogleplex,said

itwasmentalstimulationthatdrewhimtoGoogle.

Lavoieexplained,“Ithoughtuniversitywaswherethe

hardestproblemswerestudied,buteverythingisbigger

hereandtheproblemsare

hardertosolve.Thescaleof

theWebandthesystemsfascinateme.Irealizedthis

waswherethebiggestthingswerehappening.”31Lavoie

getsthesamereactionwheneverhesaysheworksat

Google.“Jealousy.Universaljealousy.”32

Sinceitsfounding,Googlehasreceivedmorethan

fivemillionjobapplicationsfromthosewishingtowork

there.Googlehasdreamedupnovelwaystofindpeople

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GoogleCulture175

itconsiderscleverenoughtofilltheirjobs.Googleonce

erectedasignboardonRoute101,thecongestedcorri-

dorbetweenSanFranciscoandSiliconValley,withouta

logo,website,orobviousmessage.Itsimplyread:“{first

10-digitprimefoundin

consecutivedigitsofe}.com.”

Thosecleverenoughtosolvetheequationcameup

with7427466391.com.Whentheytypedthatnumber

intotheirbrowsertheywereledtoapagethatpresented

another,moredifficultproblem.Thosewiththe

correct

answergotashotataGooglejobinterview.

Thecompanyalsoranits“GoogleLabsAptitudeTest”

asadvertisementsinnerdytechpublicationssuchas

theLinuxJournal.Thetestincluded21complexmath

equationsandinsider-knowledgequestionssuchas“What

isthemostbeautifulmathequationeverderived?”33

Googleoftenacknowledges:

Employeesmaybemorelikelytoleaveusaftertheir

initialoptionsgrantfullyvests,especiallyiftheshares

underlyingtheoptionshavesignificantlyappreciated

invaluerelativetotheoptionexerciseprice.

Additionally,competitionforbrainsinthecomputer

worldisintense:“...weareawarethatcertainofour

competitorshavedirectlytargetedouremployees.”34

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GOOGLESPEAKS

Inanefforttokeepbrainsin-house,Googleestablished

aFounders’Awardforemployeeswhoshowextraordi-

naryentrepreneurialachievement.Theawards,inthe

formofstockgrants,wereworthagreatdealofmoney.

ThefirsttwoFounder

’sAwards,worth

$12million,

wereawardedtotwoteams

ofadozenorsoemploy-

eeseach.

Theinducementbackfiredbecausethosewhodidn’t

gettherecognitionfeltoverlooked.“Itendeduppissing

waymorepeopleoff,”saysoneveteran.Googleseldom

grantsFounders

’Awardsnow,preferringtodoleout

smallerprizes,sometimesgivenduringapersonalvisit

fromPageorBrin.35

Alltheeffortstoretainknowledgeworkersaside,

manyGooglershaveleftthe

company,oftenbecause

theywantedtoheadtheirownentrepreneurialeffort.

AvichalGarg,aformerproductmanageratGoogle

andcofounderofastartupaimingatthetest-preparation

industry,PrepMe.com,says,“Googlewasjustamassive

explosionandsuckedinallthistalent.”Butnow,“Allof

thesepeopleareleavingwhoarerelativelyyoungand

endedupwithafairbitofmoney.Theydidn’twalkaway

with$20million,buttheywalkedawaywith$2million.

Andnowthecostofrunninganewcompanyissolow

thatessentiallyGooglefinancedtheirstart-up.”36

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GoogleCulture177

GUARDINGTHESECRETS

Googlehasbeenandremainsasecretivecompany.Partofthe

firm’sreluctancetoengageinorgiesofpublicrelationsiscom-

monsense.MountainView,Calif.isopenbutalsoclosed.Thecul-

turespawnedAndyGrove

’sbest

-selling

“OnlytheParanoid

Survive:HowtoExploittheCrisisPointsthatChallengeEvery

Company.”Dr.Grovepopularizedtheimportanceofchaos,which

obscuresunderlyingintent.Whenpublished,MssrsBrinandPage

wererevvingGoogle’sengines,andtoomuchchatteraroundthe

Googletechnicalsecretingredientswasunnecessary.37

—StephenE.Arnold,authorandtechnologyconsultant

LarryandSergeyspelleditoutwhentheywentpublic:

Asasmallerprivatecompany,Googlekeptbusiness

informationcloselyheld,andwebelievethishelped

usagainstourcompetitors.But,aswegrowlarger,

informationbecomesmore

widelyknown.Asapublic

company,wewillofcourseprovideyouwithallinfor-

mationrequiredbylaw,andwewillalsodo

ourbesttoexplainouractions.Butwewillnotunnec-

essarilydiscloseallofourstrengths,strategiesand

intentions.38

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GOOGLESPEAKS

Googleisknownforbeingelusivewithreporters,even

thosecoveringlocal

MountainViewnews.

39Because

Googlehassuchalargepresenceinitstownand

becauseGoogleisapubliclyheldcompany,thelocal

newspaperfeelsthatcitizenshavearighttoknowat

leastsomethingaboutwhat’

sgoingonthere.TheMoun-

tainViewVoicecomplainedaboutGoogle’sinaccessibil-

ityina2007editorial:

Foryearsnow—atleastsincethecompanywentpub-

licandballoonedtoitscurrentsize—itscommunica-

tionswiththepublichavefallensomewherebetween

spottyandnon-existent.40

WhenthenewspapercontactedGooglewithstraight-

forward,noncontroversialqueries,theresponsewas

notfriendly.

“Themostcommonresponsewe

receivedisnoresponseatall.Thesecond

commonresponseis,‘We’llgetbacktoyou’—followed

bysilence.”41

Theeditorialcontinued:

Ultimately,thecompanyishurtingitselfwiththiswall

ofsilence.Asaself-proclaimedorganizeroftheworld’s

information,Google’spositionandcontinuedsuccess

relyonthepublic’strustinitsmotivesandactions.

ThattrustcannotthriveunlessthepublicfeelsGoogle

isanopenandforthrightorganization.Nopublicacts

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GoogleCulture179

ofphilanthropyorenvironmentalfriendlinesscan

compensateforgoodold-fashionedaccessibility.42

Evenafteritwentpublic,Googlewasnotoriousfornot

returningtelephonecallsfromthefinancial

community

whowereseekingtounderstandandevaluatethebusi-

nessmodel.

Googlealsorefusestogiveearningsforecasts,andmuch

corporateinformation,toanalysts,whichultimatelyis

informationthatfiltersdowntoshareholders.Page

explainedinhislettertoshareholdersthatthisposition

isrelatedtomanagement’scommitmenttolong-term

planning,evenifthatmakesforerraticearnings:

Manycompaniesareunder

pressuretokeeptheir

earningsinlinewithanalysts

’forecasts.Therefore,

theyoftenacceptsmaller,predictableearningsrather

thanlargerandlesspredictablereturns.SergeyandI

feelthisisharmful,andwe

intendtosteerintheoppo-

sitedirection.

StephenArnoldwritesthatGoogle’ssecrecyispartofits

mystique:“MytakeonthisisthatGoogleisacompany

thatrequiresclosestudy.Thepublicstatementscapture

headlines,buttheinnerworkingsofGooglecontinueto

beshroudedinthejoyofinsidersecretsthatmathclub

membersenjoyedatmyhighschool.”43

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Google

GrowsUp

InlessthanadecadeGooglehasgonefromguerrillastartup

to800-poundgorilla.Insomeways,thecompanyisagentle

giant....Butthatdoesn’treducethefearfactorand

Google

knowsit.1

—KevinKelleher,Wired

HowdoestheGoogleoftodaycomparetowhatitwas

10or11yearsago?ForSergey,itisaboutgettingmore

sleep:

Onethingisthatwehave[10,000]to20,000peopleto

helpus.CertainlyIamnotpullingall-nightersallthe

timelikewewerewhenwereinthegarage,whenwe

wereonlythreetofourpeopledoingeverything.2

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GoogleGrowsUp181

Withoutquestion,Googlegrewupfasterthananycom-

panyinrecenthistory.Inadulthood,itnowfacesdiffi-

cultandmany-sidedquestions.Likeothergrown-

Googlelooksatitsresponsibilities,itscustomers,its

employees,andtosocietyasawhole.Italsomustcon-

tinuallyrefineandredefineitselfifthecompanyhopes

tocontinueitsleadershiproleintheInternetworld.

ProfessorJoelWestofSanJoseStatewarnsthatGoogle

growsmorelikeitsrivalMicrosofteveryday:

Googleisgrowingup,butitalsoisgraduallybureau-

cratizing.Canitgetpastthebureaucracyandstillbe

effective?ThishappenedatAppleandSteveJobshad

tocomebackandbreaktheculture.WillGooglebe

likeMicrosoft,dominantfortenyears,orlikeToyota,

dominantfor30years?Idon’thaveacrystalballto

tellmethat.3

CONFLICTSANDCONTROVERSY

Googleoftenhasblunderedintotroublesimplybecause

it’soperatinginsuchalarge,unfamiliar,anddiverse

world.Sometimesthesemisunderstandingsareeasyto

resolve,suchasonethatcameupinSoutheastAsia.

WhenapictureofKing

BhumibolAdulyandejof

Thailand,blendedwiththatofagiraffe,appearedon

YouTube,ThailandblockedYouTubeinthatcountry.

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GOOGLESPEAKS

NicoleWong,Googledeputygeneralcounsel,wentto

Thailandtohelpresolvetheissue.Hermeetingwasona

Mondaymorning,andshewasastoundedwhenshesaw

peoplewearingyellowshirtsandblousesinthestreets,

subways,offices,andmarkets.Theywereeverywhere.

Onthatdayoftheweek,Thaiswearyellowtohonor

thebeloved,81

-year-oldtitularheadoftheirnation.

WongrealizedimmediatelythatYouTubehadblun-

deredintoaculturalclash.Theoffendingimagewas

blockedinThailandbutwasavailableonYouTubeelse-

where.YouTubewasrestoredinThailand.

Otherconflicts,suchasthoseinvolvingfraud,por-

nography,privacy,advocatingviolence,and

rights,arethornier.

ClickFraud

Allofthesearchprovidershavebeenplaguedwithclick

fraud,thepracticeofmanipulatingthestatusofaweb-

site,eithertomakeasite

lookmoredesirableorto

causetroubleorrunupcostsforacompetingwebsite.

There’snoendtothemischief.Piggybackingand

conquestbuysalsooffendadvertisersanddistortthe

usefulnessofGoogleadvertising.Piggybackingoccurs

whensmalleradvertisersplantbrandnames,slogans,

ortrademarkedwordsinthetextoftheirownsearch

adstoluresurfersintheirdirection.Inaconquestbuy,

theadvertiseractuallybuysacompetitor’skeywordso

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GoogleGrowsUp183

thatitsownadislistedalongsidethatofthemostlegiti-

mateorlikelyuserofthekeyword.Keywordsaren

usuallyexclusive.Sometimes

acompanywillrepeatedly

clickonarival’ssearch-engineadvertisementstodrive

upitscompetitor’scosts.

Fraudulentclicksarethemostvexingproblemfor

Googleadvertisers.Certainwebmasterscreatewebsites

tailoredtoluresearchersfromGoogleandotherengines

ontotheirwebsitetomakemoneyfromAdWordsor

AdSenseclicks.These

“zombie”sitesoftencontain

nothingbutalargeamountofshamcontent.Someare

splogs(spamblogs),whicharebuiltonhigh

-paying

keywords.Manyofthesewebsitesusecontentfrom

otherwebsites,suchasWikipedia.

AnotherformoftrickeryisaMadeforAdSense(MFA)

websiteorWebpage.Ithaslittleornorealcontent,but

isfilledwithadvertisementssothatusershaveno

choicebuttoclickonadvertisements.Suchpageswere

oncetolerated,butbecauseofthemanycomplaints,

Googlenowdisablessuch

accounts.

Someadvertisersclaimthat25to30percentoftheir

onlineadvertisingbudgetisdrainedoffbyclickfraud.

Theactualpercentagewouldvaryaccordingtoaccount.

Googleadmitsthatclickfraudisaproblemandcon-

stantlyworksinternallytoavoidit;thecompanyalso

saystheactualleveloffraudisn’tashighassomeadver-

tisersclaim.

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GOOGLESPEAKS

Googlehastakenvariousstepstominimizeorpre-

ventinvalidclicks.Somepublishersthathavebeen

blockedbyGoogleandothersreportreceivingalife-

longban.Thesesitesoftencomplainthatthepunish-

mentisunjustified,butGoogleclaimsitcannotdisclose

specificdetailsonclickfraud,sinceitcouldrevealthe

natureofitsproprietaryclick-fraudmonitoringsystem.

GoogleproductmanagerSalarKamangarsaysthat

thecompanyisvigilantandhasprosecutedclick-fraud

cases,butthatitbecomesmuchmoredifficultacross

internationalborders.Instead,Googleconcentrateson

spottingandpreventingthefraudinthefirstplace.

“Iwouldcharacterizethe

lossesduetoclickfraudas

small,”saidKamangar.

Wehaveasoftwaresystemthatfiltersoutfraudulent

clicksevenbeforeadvertisersgetbilledforthem.We

areconservativewithwhatwecount,andthrowout

anythingthatlooks

suspicious.Wealsohaveateamof

engineersandareconstantlylookingforwaysto

updatethesoftware.Wealsohaveateamofspecialists

investigatingreportsfromcustomersthatcontactus

andletusknowtheythinkthereisaproblem.4

Avoiding—orNotAvoiding—Pornography

InJanuary2006,theJusticeDepartmentrequestedthat

GooglehandoversearchdatatosupporttheBushadmin-

istration’sdefenseoftheChildOnlineProtectionAct

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GoogleGrowsUp185

(COPA),anInternetpornlaw.Itisoftenthecasethat

societies’mostseriousissuesarefoughtoversmut.In

thiscase,Googleneededtoprovethatitwouldprotect

customerprivacy.Thecompanyalsosaidthatreleasing

therequestedinformationcouldexposetradesecrets.

Googlefoughttherequestlegallyandwonincourt.

AnarticleinForbessuggestedthatGooglevigorously

defendedthecasenotsomuchtoprotecttheprivacyof

thoseusingitssearchengine,butespeciallytokeepa

lidonhowmuchmoneyitgathersfrompornography

searchandadvertising:

Apublicdisclosureofexactlyhowmuchpornography

isontheInternetandhowoftenpeoplelookforit—the

twodatapointsthatwillresultfromfulfilling

thegovernment’ssubpoena—couldservetomakethe

Internetlookbad.AndGoogle,asitsleadingsearch

engine,couldlooktheworst.5

Thearticlecontinues,“Googleanditscompetitorsall

benefitfrompornsites,whichhelpgeneratesearch

queriesandpageviews.ButGoogleistheonlyportal

companythatmakesnearlyallofitsrevenuesfrom

click-throughadvertising.

Restrictingpornandporn

advertising—thelikelyaimofCOPA’ssponsors—could

hurtGoogledisproportionately.”6

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GOOGLESPEAKS

Noneofthesearchenginesdiscloseshowmuchpor-

nographyisviewedthroughitssites.Infact,when

AmericaOnlinelistsitsmostcommonsearches,porn

referencesareliftedout.Pornographyorsexually

explicitsearchtopicsarenotseeninGoogle’sZeitgeist

reports,either.However,Nielsen/NetRatingssaidthat

pornsitesattracted38millionviewersinDecember

2007alone.Thisisone-fourthofallInternetsurfers.7

Webpornisbigbusiness.

About12percentofallweb-

sitesdealwithpornographyinsomeform,andworldwide

revenuesfromtheindustryareestimatedatmorethan

$97billioneachyear.AccordingtoNielsenOnline,about

one-quarterofemployeesvisitInternetpornsites

during

workinghours.M.J.McMahon,publisherofAVNOnline

magazine,reportsthathitsarehigherduringofficehours

thanatanyothertimeofday.

TheNationalCenterforMissingandExploited

Childrenestimatedin2003that20percentofallpornog-

raphytradedovertheInternetwaschildpornography,

andthatsince1997,thenumberofchildpornogra-

phyimagesavailableontheInternethadincreasedby

1,500percent.

YouTubehasbeencriticizedfordisplayingvideosthat

includechildpornographyand/orviolentsex.Somany

YouTubeusersarepostingsuchalargenumberofvideos

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GoogleGrowsUp187

eachdaythatitclearlyisdifficultforthecompanyto

policesuchmatters.However,aspokesmannoted:

ForYouTubewehavestrictrulesonwhat’sallowed,

andasystemthatenablesanyonewhoseesinappro-

priatecontenttoreportittoour24/7reviewteamand

haveitdealtwithpromptly....Giventhevolumeof

contentuploadedonoursite,wethinkthisisbyfarthe

mosteffectivewaytomakesurethatthetinyminority

ofvideosthatbreaktherulescomedownquickly.8

Googleitselfdoesn’ttrytokeeppornographyoutofthe

searchresults.Searchesofsexuallyexplicitkeywordsshow

plentyofsponsoredlinks,oradvertisements.Andper-

hapsitwasanaccident,butGoogleStreetViewonce

showedprostitutesgathered

onastreetcornerin

California.

However,theportaloffersafilterforthosewhowish

toprotectthemselvesortheirchildrenfromprurient

wordsandimages.Somecriticssaythefilterissocrude

thatitalsoeliminateswebsitesoftheWhiteHouse,

IBM,theAmericanLibraryAssociation,andclothing

manufacturerLizClaiborne.Googleconcursthatthe

filtererrsonthesideofcaution:

ManyGoogleusersprefernottohaveadultsites

includedintheirsearchresults.Google’sSafeSearch

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GOOGLESPEAKS

screensforsitesthatcontainthistypeofinformation

andeliminatesthemfromsearchresults.Whilenofil-

teris100percentaccurate,Google

’sfilteruses

advancedproprietarytechnologythatcheckskey-

wordsandphrases,URLsandOpenDirectorycatego-

ries.WhenSafeSearchisturnedon,sitesandweb

pagescontainingpornographyandexplicitsexual

contentareblockedfromsearchresults.9

ThosewishingtousetheblockercangotoGoogle.com,

typeSafeSearchinthesearchbox,andapopupappears

allowingSafeSearchtobeactivatedorswitchedoff.

Nevertheless,ifthefilterwerebetter,morepeople

mightuseit.“IfGoogleputsomeofitssmartpeople

onthistask,theycoulddoamuchbetterjobthanthey

havesofar,”saidBenEdelman,astudentfellowatthe

HarvardLawSchool

’sBerkmanCenterforInternet

andSociety.

“They’vegotalotofsmartpeople.It

wouldbeshockingiftheirgreatengineerscouldn’tdo

better.Thequestioniswhetherthat

’sapriorityfor

Google.”10

PRIVACYISSUE

“Privacyisdead,getoverit,

”famouslydeclaredSun

MicrosystemsfounderScottMcNealy.11

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GoogleGrowsUp189

Ononehand,Googlegoestocourttodefendtheprivacy

ofthoseusingitssearchengine.EricSchmidtempha-

sizesthatGoogledependsonthetrustofitsusers,add-

“Itwouldbeadisasterforthecompanyifthat

privacywerecompromisedbyaprivacyleakorsome

verybadgovernmentactionthatwecouldn’tstopunder

threatoftanks.”12

Ontheotherhand,Googlefrequentlyisaccusedof

invadingprivacythroughitsadvertisingprograms,its

mapapplications,itse-mailservice,andinotherways.

Google’s“Internetevangelist”VintCerfechoedMcNea-

ly’spointofviewinaspeechhegavetotheWashington

TechnologyAlliance’sannualluncheon:“...nothing

youdoevergoesaway,andnothingyoudoeverescapes

notice...thereisn’tanyprivacy,getoverit.”13

KenBoehm,chairmanoftheNationalLegalandPolicy

Center,disagreed:

“PerhapsinGoogle

’sworldprivacy

doesnotexist,butintherealworldindividualprivacyis

fundamentallyimportantandisbeingchippedawaybit

bybiteverydaybycompanieslikeGoogle.Google

hypocrisyisbreathtaking.”14

Privacyisoneofthetopicsthatscarepeoplemost

aboutGoogle.“Googleknowsmoreandmoreaboutus,

butrightnowthere’salmostnothingwecandotofind

outexactlywhatitdoeswiththatinformation,”observed

FrankPasquale,anassociateprofessoratSetonHall

UniversitySchoolofLaw

andaproponentforreiningin

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GOOGLESPEAKS

Google.

“Wewanttomakepowerful

entitiesonthe

Internetaccountable.”15

WheneversomeonelandsonaGooglepage,theyget

acookieunlesstheyalreadyhaveone.Inthatcase,

GooglereadsandrecordstheIDnumber.Usingeven

moresophisticateddeep

packetinspectiontechnology,

Googlecanobserveauser’sentireWebbrowsingexpe-

rience,includingallURLsvisited,allsearches,and

actualpagesviewed.16

Thecompanyreallydidnotwanttospoilthepurityof

itsproudlysparsehomepage,

butduetopressurefrom

activists,Googlefinallyaddedanadditionalsevenlet-

ters.Theword?Privacy.Byclickingontheword,Google

userscancheckoutthecompany’sofficialstandonpri-

vacyissues.

ADVERTISINGPRODUCTS

TrackinginformationisakeypartofGoogle’sadvertis-

ingprograms.AdvertiserslovetheideathatGooglepro-

gramsallowthemtoverifyandanalyzeWebtrafficand

informationaboutthosewho

clickontheirads.

GeraldReischl,authorofaGermanbooktitledThe

GoogleTrap,isespeciallyconcernedabouttheinforma-

tioncollectedusingGoogleAnalytics,afreeprogram

forwebsiteownerstokeeptrackofusagepatternson

theirsite.Thedata,claimsReischl,isalsosavedby

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GoogleGrowsUp191

Google,andtransferredtotheUnitedStatesinviolation

ofGermanlaw.“AnalyticsisGoogle’smostdangerous

opportunitytospy,”saysReischl.17

HendrikSpeck,professorattheappliedsciencesuni-

versityinKatserslautern,saysthatcomparedwithwhat

Googlecollectsandknows,intelligenceagencieslook

“likechildprotectionservices.

”Theinformation,he

says,couldbeusedtotargetadvertisingmanyyears

intothefuture.And,hesays,“ThemoredataGoogle

collectsfromitsusers,thehigherthepriceitcanaskfor

advertisements.”18

AccordingtoPeterFleischer,

Google

’sParis

-based

GlobalPrivacyCounsel,Reischl’sconcernisunfounded.

“Wecollectalotofdata,”saysFleischer,“butnothing

thatidentifiesanyparticular

person.”19

Thedatacanbeused,however,toinfluencethe

behaviorofWebsearchers.Internetcompanieslike

GoogleandYahoo!havebeenexpandingtheuseof

so-called“behavioraltargeting”technologytotapvast

amountsofaccumulateddatainanefforttoboostadver-

tisingrevenue.

Behavioraltargetingcomesinanumberofpermuta-

tions,thoughallservethesamepurposeofexamining

whatInternetusersarevisiting,buying,andlookingfor

notonlyontheirsites,butalsoelsewhereontheWebin

ordertoconstructamarketingprofileforadvertisers.

Thepayoffcouldbeconsiderable.Themoreaccurately

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GOOGLESPEAKS

anadistargeted,themoreanadvertiseriswillingto

payforit.20

Effortstopreventclickfraudalsomightbeseenasan

invasionsofprivacy.AdSensepublisherscan

choose

fromanumberofclick-trackingprograms.Thesepro-

gramsdisplaydetailedinformationaboutthevisitors

whoclickontheads.Publisherscanusethistodeter-

minewhethertheyhavebeenvictimsofclickfraud.

“ThemostcommonlyvoicedfearisGoogle

’sunique

capacitytotrackwhatwe

’rethinkingbasedonwhat

we’relookingfor,”wroteTheBostonGlobe.“Googlecantrackeveryname,placeandtopicwesearch.ThecompanycanlearnevenmoreaboutpeoplewhouseGmail,

thesocialnetworkingsiteOrkutoranotherofGoogle’s

popularpersonalizedservices.”

UsingAdSensetechnology,Gmail,Google’sfreeWeb-

basede-mailservice,deliversadsintoe-mailmessages

linkedtothetopicofthee

-mailitself.Googleuses

atotallyautomatedsystemtolinkwordstotheirads,

butstill,ifthiscanbedone,itleavessomepeoplewith

thesneakingsuspicionthatGmailsnoopingalsocould

beeasy.

TheGmailprogramhasbeenwellreceived,despite

privacyconcerns.“Ourcompetitorshaven’tbeenable

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GoogleGrowsUp193

tomatchGmail’scleaninterfaceandhugepower,”says

Google.Wecurrentlyofferabout2.7GBofsearchable

storageforfree.Wealso

madeiteasiertosignupfor

Gmailbyusingyourmobilephone,whilemakingit

hardforspammerstogetaccounts.”21

STREETVIEW

Indignationoverprivacyhasbeenespeciallystrong

fromabroad.TheBritish

newspaperTheIndependent

wrote,

“Oneofitsnewventures,GoogleStreetView,

makesgovernmentCCTVsurveillancelookamateur.”22

Somepeoplebecamealarmedwhentheyrealized

GoogleStreetViewcamerascouldzoominsoclosely

thatinonecase,peoplecouldbeseeninsidethehouse.

AaronandChristineBoring,anAmericancouple,unsuc-

cessfullysuedGooglefor

$25,000forshowingtheir

houseonGoogleStreetView.

“I’mconvincedifyoulookattheactionsofGoogle,”

saidtheBorings’attorney,DennisMoskal,“foracom-

panythatsays‘don’tdoevil,’itappearsthattheydidn’t

haveproperinternalcontrolsonthepeopledriving

aroundtakingthesepictures.

InitsresponsetotheBorings’lawsuit,Googlequoted

fromalegaltext:

Completeprivacydoesnotexistinthisworldexceptin

adesert,andanyonewhoisnotahermitmustexpect

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GOOGLESPEAKS

andenduretheordinaryincidentsofthecommunity

lifeofwhichheisapart.Itusuallyisnotagainstthe

lawtophotographahousefromthestreet,aslongas

thephotographerdoesnottrespassonprivate

property.24

ThesmallnorthernGermantownofMolfsee—notatall

happyattheprospectofbecomingpartofStreetView—

anticipatedthearrivalofGoogle’sfleetofdark-

colored

OpelAstraswithcamerasontop.Thephotographyvehi-

clesalreadyhadshownupinotherpartsofGermany,

snappingphotographsforGoogleStreetView.The5,000

citizensofMolfseetookfastaction,gettingthelocal

ciltopassaroadtrafficactthatwouldrequireGoogleto

getapermitforthepicture-taking.Localpoliticiansthen

refusedtoissuethepermit.OtherpartsofGermanywere

consideringenactingsimilarordinances.

“Thesepictures,whichareavailableforretrieval

worldwideovertheInternet,couldeasilybelinkedto

satellitephotos,addressdatabanksandotherpersonal

data,”warnedGermany

’sFederalCommissionerfor

DataProtection,Peter

Schaar.25

WhileGooglesoftwareapparentlyblurslicenseplate

numbersandfacessoastomakethemunrecognizable,

andanyonewhoappearsinapicturecanrequestthat

thepictureberemoved,thosesafeguardsdonotseem

tobeenoughformanypeople.StreetVieweasilycan

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GoogleGrowsUp195

provideotherdamaginginformation,and,especially

whencombinedwith

buildingsviewedfromaboveby

satellite,couldbequiteusefultostalkersoranyonewith

criminalintent.

InJapan,agroupoflawyersandprofessorsasked

GoogletosuspenditsStreetViewservicethere.“We

stronglysuspectthatwhatGooglehasbeendoing

deeplyviolatesabasicrightthathumanshave,”said

YasuhikoTajima,aprofessorofconstitutionallawat

SophiaUniversityandheadofTheCampaignAgainst

SurveillanceSociety.

“Itisnecessarytowarnsociety

thatanITgiantisopenlyviolatingprivacyrights,which

areimportantrightsthatthecitizenshave,throughthis

service.”26

GoogleCEOEricSchmidtknowshowitfeelstohave

hisprivateinformationsplashedallovercyberspace.In

2004,ElinorMills,areporterforthetech-newswebsite

CNET,decidedtodiscoverhowmuchpersonalinfor-

mationshecouldcollectontheInternetaboutSchmidt.

SheGoogledhimandlearned

Schmidt

’snetworth

($1.5billion),homeaddress(somewhereinAtherton),

andthenamesofhisguestsatapoliticalfundraiser.

ThemainguestswouldbeAlandTipperGore,who

dancedasEltonJohnbelted

out“BennieandtheJets.”

ShediscoveredthatSchmidtisanamateurpilotand,

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GOOGLESPEAKS

likeBrinandPage,has

cruisedtheBurningManFestival

intheNevadadesert.

Schmidtwasirate,insistingthecompanywould

blacklistallCNETreportersforayear.Inresponseto

critics,Googleendedtheboycottafteramonth.27

“Privacy,attheendoftheday,”notedEricSchmidt,

“ishowyoufeelaboutyourprivacy.PeoplefeelOKwith

adsaboutwhatyouaredoingbutnotaboutwhoyou

are.Privacywillbeanevergreenissue.”28

“WhatIwantinthe[Google]privacypolicy,”

saidHelen

Nissenbaum,professorintheDepartmentofMedia,Cul-

ture,andCommunicationatNewYorkUniversity,

somethingthatsayswewilluseyourinformationx,y,

andz,andwewillnotuseit

foranythingelse,andwe

willneverchangethispolicy.”29

Privacymaynotbeascoldandburiedasitmight

appear:

•GoogleandacoalitionofotherInternetcompanies

signedanagreementto

safeguardprivateinforma-

tionandfreedomofspeechontheInternet.For

moreonthatpact,gotothesection“Hello,Human

Rights,”inthischapter.

•Google’stechsupportandprivacypagesprovide

instructionsonhowtoblock

awebsitefroma

searchengine,aswellashowtogetridofcached

orhistoricalversionsofthesite.

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GoogleGrowsUp197

•Inthepastfewyears,regulatorsinEurope,advo-

cacygroups,andotherseffectivelypressured

searchenginestolimitthetimetheyretainper-

sonalinformation.Ask.comnowofferssearchers

theoptionofhavingtheirinformationstoredforno

morethanafewhours.Yahoo!slashedthetimeit

storespersonaldatatothreemonths.Googlehas

trimmedthetimeitretainspersonalinformation

from18to9monthsandparedthelifespanofits

cookiesfrom30-plusyearsto2years.30

•TherearerumblingsintheU.S.Congresstopass

onlineprivacylegislationthatwouldgiveconsum-

erstherighttooptoutoftrackingoftheirWeb

activities.31

•ItalianPrimeMinisterSilvioBerlusconihasvowed

topushforaninternationalagreementtoregulate

theInternetandensuregreateruserprivacy.32

•Mostbrowsers,Google’sincluded,nowincorporate

aprivacyfeaturethatcoversaWebsearcher

tracksontheInternet.Nottobefooledastoits

mostobviouspurpose,mosttechiesrefertothe

itemas“pornmode.”

CANTHEYSNOOP—ANDWILLTHEYTELL?

Theyhaveamassedmoreinformationaboutpeopleintenyears

thanallthegovernmentsoftheworldputtogether.Theymake

theStasiandtheKBGlookliketheinnocentoldgrannynext

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GOOGLESPEAKS

door.Thisisofimmensesignificance.Ifsomeoneeviltook

themover,theycouldeasilybecomeBigBrother.33

—AndrewKeen,British-bornauthor,

Internetcritic,andSiliconValleyentrepreneur

Googlefreelyadmitsthatitcollectsvarioussortsof

informationaboutusers.However,thecompanysaysit

doesnotcollectpersonalidentifyingdatasuchascredit-

cardinformation,phonenumbers,orbuyinghistory—

unlessausersignsupforaservicesuchasCheckout.

SinceGooglebeganemphasizingcloudcomputing,or

individualcomputingdoneonGoogle’sownwebsite,its

productspresentevenmoreopportunitiestosnoop.For

example,itsDesktopSearchindexesaclient

’sentire

desktopoffiles,whichmeanstheyarethensearchable.

However,theinformationisstoredonGoogle’swebsite.

Googlewarns,“Wemayshare[private]information..

[if]weconcludethatwearerequiredbylaworhavea

goodfaithbeliefthataccess,preservationordisclosure

ofsuchinformationisreasonablynecessarytoprotect

therights,propertyorsafetyofGoogle,itsusersorthe

public.”

Perhapsthemostscathingcommentsontheprivacy

issuecameina2004MotherJonesarticle:

SothequestionisnotwhetherGooglewillalwaysdo

therightthing

—ithasn

’tanditwon

’t!It

’swhether

Google,withitsinsatiablethirstforyourpersonal

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GoogleGrowsUp199

data,hasbecomethegreatestthreattoprivacyever

known,avastinformationalhoneypotthatattracts

hackers,crackers,onlinethieves,and—perhapsmost

worrisomeofall—agovernmentintentonfindingcon-

venientwaystospyonitsowncitizenry.34

“Howmanypeople,”asksSergeyBrin,“doyouthink

hadembarrassinginformationaboutthemdisclosed

yesterdaybecauseofsomecookie?Zero.Itneverhap-

pens.YetI’msure

thousandsofpeoplehadtheirmail

stolenyesterday,oridentitytheft.”35

Actually,thenumberoftimesinformationiscompro-

misedmaybesmall,butit’snotzero.Therewasacase

intheNetherlandsinwhichGoogledidnotspy,butits

applicationswereusedtosnoop.Achieftechnology

officerinstalleda“backdoor”serverinthecompany’s

hostingcenter,settingituptoforwardinformationfrom

acorporatedirector’se-mailtotheso-calledspybox,aGmailaccountusedasadocumentdrop.TheCTO

seemedtohaveinformationthatheshouldn’thavehad,

andeventuallyhewenttoofar:“...heforwardedpri-

vate(love)mailofoneof(thecompany’s)directorsto

hiswife.Sheprovidedthesee-mailstous,whichwere

sentfromananonymousGmailaccount.Their

marriage

wasalreadyheadingforadivorce,butthedisclosed

e-mailsanddishonorableallegationsaboutthevictim-

izeddirectorcreatedanunworkablesituation.”36

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GOOGLESPEAKS

ADutchcourtorderedGoogletorevealtheinforma-

tionassociatedwiththeaccount,andtheInternetPro-

vider(IP)addressusedtoaccessit.Theculpritwasthen

caught.Thecompany’slawyersaiditis“surprisinghow

easyitistoharassinnocentpeoplewithanonymous

(Gmail)accounts.TheverdictshowsthatU.S.

-based

GoogleInc.iswillingtocomply[with]Dutchlaw,

thattheprivacyofavictim‘overrules’theprivacyofthe

personwhodidwrong.Asitshouldbe.”37

HELLO,HUMANRIGHTS

“There’sasubtextto‘Don’tbeevil,’andthat’s‘Don’tbeillegal,’”saidVintCerf,oneofthefounding

fathersof

theInternet.CerfnowservesasthechiefInternetevan-

gelistatGoogle.38

WhenLarryandSergeyfirststartedontheirjourney

intotheworldofsearch,theyweredrivenandexcited

bythescienceandthe

possibilitiesthattechnologypre-

sented.Theymaynothaverealizedwhatvastpower

wouldbeassignedtoGoogleandsurelydidn

’tfully

grasptheresponsibilitythatwouldattendthatpower.

“Googlemaybethefirstentityhumankindhasever

knownwiththeglobaleconomicpowerandsocial

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GoogleGrowsUp201

influencetotaketheethicalhighroadandtreatfree

andopenexpressionlikeamoralabsolute,

”said

JonathanAskin,aBrooklynLawSchoolprofessorand

lawyerforInternetandtelecommunicationsclients.“If

Googledoesn’thavethewherewithaltoexertitsinfl

enceforthegoodofhumanity,Idon’tknowwhowill

havethecouragegoingforward.”39

WorriesoverhumanrightsandInternetusageare

serious.In2006,Yahoo!Inc.turnedovere-mailsand

otherinformationtotheChinesegovernment,resulting

intheimprisonmentofjournalistShiTaoandwriter

WangXiaoning.Yahoo!laterapologizedfortheaction

andprovidedfinancialsupporttotheprisoners’fami-

liesandaskedtheU.S.governmenttointervene.

THEGREATCHINESEFIREWALL

Inthefallof2002,theChinesegovernmentbeganblock-

ingaccesstoGoogleandafewothersearchengines.

Theseenginescontained

variouswaysoffindinginfor-

mationtheChineseauthoritieswantedtokeepfromits

citizens.Withintwoweeks,theservicewasrestored,

because,accordingtosomesources,Chinesecitizens

wereoutragedbythe

blockage.NowwhenChinese

searchersclickonabannedlink,theyaredirected

insteadtoagovernment-approvedsite.

WhenGooglereenteredtheChinamarket—whichis

230millionpeople—thecompanydecidedtoabideby

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GOOGLESPEAKS

governmentcensorshiprestrictions,despiteanoutcry

frommanythatthecompanywasgivingintoagovern-

mentthatabusedhumanrights.

SergeyBrinadmittedthatitwaslegitimatefor

GoogletorefusetodobusinessinChina,giventhecir-

cumstances.But,headded,therewasanalternative

path.GivetheChinese

peopleatleastsomeaccessto

information,eventhoughinsomewaysitwouldbelim-

ited.InadditiontoGoogle.cn,theofficialsite,Brinnoted

thattheChinesepeoplealsohavetheoptionoflogging

ontoGoogle.com,wherethe

informationwouldbe

uncensoredbuttheservicewouldbemuchslower.At

lasttally,themajorityofChineseWebsurferswere

choosingtheslowerbutmoreinformativeservice.

“Wethinkwehavemadeareasonabledecision,

thoughwecannotbesureitwillultimatelybeprovento

bethebestone,”Brinsaid.“We’vebegunaprocessthat

wehopewillbetterserveourChineseusers.”40

“...Whenyouadditallup,wethinkwe’rehelpingto

advancethecauseofchangeinChina,”saidAndrew

McLaughlin,Google’sheadofglobalpublicpolicy.41

Chinesegovernmentofficialsexpressedtheirviewthis

way:“Anytradeandcommercialcooperationshouldbe

carriedoutwithintheframeworkoflaws.Wehopethat

therelevantcompanies,whenundertakingbusinessoper-

ations,canabidebyChineselawsandregulations.”42

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GoogleGrowsUp203

Perhapsitwaspurelyabusinessdecision,butlater

thesameyearGoogleannouncedamajorinvestmentin

Baidu,aleadingChinesesearchengine.

Otherrepressiveregimesalsohavetakenswipesat

Google.Foratime,IranshutdownGoogleblogsinthat

countrybecauseitdidnot

likethediscussiongoingon.

AccordingtotheReporterswithoutBorders(RSF)

“Internetenemylist,”thefollowingstatesengageinper-

vasiveInternetcensorship:Cuba,Maldives,Myanmar/

Burma,NorthKorea,Syria,Tunisia,Uzbekistan,and

Vietnam.

PRINCIPLESOFFREEDOM

Google,alongwithMicrosoft,Yahoo!,andotherInter-

netcompanies,signedavoluntarycodein2008spelling

out“principlesoffreedom

ofexpressionandprivacy.”

Theprinciplesarefairlygeneral,butiftakenliterally

couldbequitedifficultforInternetcompaniestoadhere

to.Still,thepactisagiantstepintherightdirection.

Microsoftexplainedinacompanynewsrelease:

FromtheAmericastoEuropetotheMiddleEastto

AfricaandAsia,companiesintheinformationandcom-

municationsindustriesfaceincreasinggovernment

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GOOGLESPEAKS

pressuretocomplywithdomesticlawsandpoliciesthat

requirecensorshipanddisclosureofpersonalinforma-

tioninwaysthatconflictwithinternationallyrecog-

nizedhumanrightslawsand

standards.43

AdiversecoalitionoforganizationslaunchedtheGlobal

NetworkInitiative,whichestablishesguidelinesfor

resistinggovernmenteffortstoenlistcompaniesinacts

ofcensorshipandsurveillance.Thegroupis

collaborat-

ingwithothercompanies,investors,civilsocietyorgan-

izations,andacademicstoestablishandimplement

PrinciplesonFreedomofExpressionandPrivacy,adoc-

trinebasedoninternationallyrecognizedlawsand

standardsforhumanrights.

MikePosner,presidentofHumanRightsFirst,said,

Intoday

’sworld,itisurgentforInternetproviders

andothercommunicationscompaniestochallenge

governmentcensorshipand

intrusionintopersonal

privacy.Thesepracticesoftenleadtotragicconse-

quencesforfrontlinehumanrightsactivists.Through

thisinitiative,wetakeacrucialfirststepinadvancing

freeexpressionandprivacy,atatimewhengovern-

mentinterferencewiththesebasichumanrightsison

therise....Technologymustnolongerbeusedtotram-

plebasichumanrights.44

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GoogleGrowsUp205

COPYRIGHTINFRINGEMENT

Inanopenlettertothe8,000membersoftheAuthors

Guild,PresidentRoyBlountJr.wrote:

TheGuildhadsuedGoogleinSeptember2005,after

Googlestruckdealswithmajoruniversitylibrariesto

scanandcopymillionsofbooksintheircollections.

Manyofthesebookswereolderbooksinthepublic

domain,butmillionsofotherswerestillundercopy-

rightprotection.NickTaylor,thepresidentofthe

Guild,sawGoogle’sscanningas“aplainand

brazen

violationofcopyrightlaw.

”Googlecounteredthat

digitizingthesebooksrepresenteda“fairuse”ofthe

material.Ourpositionwas:Thehellyousay.Ofsuch

disagreements,lawsuitsare

made.45

ThiswasthereactiontoGoogle’sgrandioseschemeto

scanallthebooksitcouldandmakethemavailableon

theInternet.Googledescribedtheprojectasagreatgift

tohumanity.OneGoogle

employeetoldtheNewYorker’s

JeffreyTobin,

“IthinkofGoogleBooksasourmoon

shot.”46Authorsandpublisherssawitdifferently.

THEAUTHORS’REVOLT

Indeed,theAuthorsGuildfiledsuit,asdidtheAsso-

ciationofAmericanPublishersandseveralmajorpub-

lishinghouses.Later,theEuropeanParliamentbegan

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GOOGLESPEAKS

scrutinizingthecompanyforpotentialcopyright

infringement.

ThepresidentofBibliothequeNationaledeFrance,

Jean-NoelJeanneney,called

theproject

“apieceof

Anglo-Saxonculturalimperialism.”47

Twoyearsafterthesuitswerefiled,Googleandthe

plaintiffsreachedaU.S.settlementthathasthepoten-

tialofrevolutionizingthe

publishingindustryandthe

waypeopleaccessbooks.Italsosetupapowerful

moneymakerforGoogle.

First,let’stakealookatwhatthedisputewasallabout.

GrandAmbitions

LarryPagetookapersonal

interestinassemblinga

massivelibraryofbooksonGoogle’swebsite.Hemade

avisittohisalmamater,theUniversityofMichigan,in

mid-2004,andsoonafterwardGooglequietlystarted

digitizingbooksfromUM’slibrary.Laterintheyear,the

GooglePrintforLibrariesprojectwasmadepublic.The

initiativehashadseveralnamechangesandlatelyis

calledthePrintLibraryProject.

“Callmeweird,”saidSergeyBrin,“butIthinkthere

arealotofadvantagesto

readingbooksonline.You

don’thavetolookatitatafunnyangle,andtoday’s

monitorshavebetterresolutionthanever.”48

Eventually,30libraries,includingOxford,Stanford,and

HarvarduniversitiesandtheNewYorkPublicLibrary,

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GoogleGrowsUp207

joinedwithGoogleindigitizingbooks.Googlepaysthe

libraryfortherighttocopythebookbyprovidingthelibrary

itselfwithadigitalcopy.Withinfouryears,Googlehaddig-

itizedmorethansevenmillionvolumes.

Googlepromotedthebookprojectasapublicserv-

ice,asawaytomakeknowledgemorereadilyavailable

andhelpauthorsgetexposurefortheirideasandfor

theirwriting.Unfortunately,thereseemedtobelittleor

nomechanismtobenefitthosewhocreatedthework.

Googlehadalegalrighttocopyaboutone-sixthofall

books,theonesoldenoughtohaveneverbeencopy-

rightedandthosethathaveoutlivedtheircopyright

protection.About85percentofallbooksarestillunder

copyright.Manyofthoseareoutofprint,butthey

remaintheintellectualpropertyofthosewhowrote

them.About10percentofallbooksarebothinprint

andcopyrighted.

Afterthelawsuitswerefiled,Googlescaledbackits

dreamsandbegantooperatethisway:“Whenyouclick

onasearchresultforabookfromtheLibraryProject,

you’llseebasicbibliographicinformationaboutthe

book,andinmanycases,afewsnippets—afewsen-

tencesshowingyoursearchtermincontext.Ifthebook

isoutofcopyright,you’llbeabletoviewanddownload

theentirebook.Inallcases,you’llseelinksdirecting

youtoonlinebookstoreswhereyoucanbuythebook

andlibrarieswhereyoucanborrowit.”49

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GOOGLESPEAKS

Onlycertainbooks,thosethatGooglecouldusefor

free,wouldbeavailablefordownloadingintheirentirety;

otherscouldbepurchased,bylinkingtobooksellers.

Google’sbooksearchprojectbegantolooklikeabig,

onlinebookstore.

TheSnippetDefense

Googlecontinuedthescanningandstoodupforits

righttodigitizeallbooks.Thelawsuitsarguedthat

Google’stwoclaims—thatitwasmerelyusingasnip-

petallowedunderfairuserulesandthatthedigitiza-

tioncouldspurbooksales—wereinsufficient:Evenif

Googlediduseonlysnippets,theAuthorsGuildclaimed

thatthecompanyhadnorighttoscanthecopyrighted

booksinthefirstplace.Digitalcopyingisoneofthe

usescoveredundercopyrightlaw.Google’s“snippet”

argumentraisedanotherquestionamongauthors—if

thesearchenginewouldshowonlytinyexcerpts,why

wouldGooglebothertoscanandstoretheentirebook?

ThisimpliedthatGooglehadsomethingelseinmind.

Certainlythebooksonlinerepresentedachancetosell

alotofads.

“Googleisdoingsomethingthatislikelytobevery

profitableforthem,

”saidPaulAikinoftheAuthors

Guild,“andtheyshouldpayforit.It’snotenoughtosay

thatitwillhelpthesalesofsomebooks.Ifyoumakea

movieofabook,thatmayspurtsales,butthatdoesn’t

meanyoudon’tlicensethebooks.”50

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GoogleGrowsUp209

OtherInternetserviceshaveideassimilartoGoogle’s.

Microsoftspent$2.5milliontoscan100,000books,butis

nolongersponsoringthework.Amazonalsohasscanned

hundredsofthousandsofbooksforthee-bookservice,

Kindle.Bothcompaniestookdifferentapproaches,ones

thatdealtwritersandpublishersintothegame.

WhosePropertyIsIt,Anyway?

TheattitudeofGoogle’smanagementdidnotendearit

toauthorsandpublishers.Schmidtdeclaredthatcopy-

rightisnotan“absolute”right,andthatGoogleiswill-

ingtopushtheenvelopeonthisissue.“That’sprobably

correct,”hesaid.“Ifthere’salegalcase,we’regoingto

favorthelegalonethatfavorstheusers.”51

SergeyBrinsurelywasn

’tsurprisedattheuproar

overcopyrightinfringement.Asagraduatestudent,he

workednotonlyonStanford’sbookdigitizationproject,

butalsoonaventureinvolvingautomateddetectionof

copyrightviolations.

Additionally,thecompanyfoundersclearlyunder-

stoodthevalueofintellectualoutputwhenitistheir

own.Initsprospectusforitsinitialpublicoffering,

Googledeclared,“Ourintellectualpropertyrightsare

valuable,andanyinabilitytoprotectthemcouldreduce

thevalueofourproducts,

servicesandbrand.”

AllAboutAdvertising

TheU.S.Congressconductedalegalreviewofthebook

projectandpublisheditsownreport.

“TheLibrary

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GOOGLESPEAKS

Projecthasthepotentialtobeagreatboontoscholar-

shipresearch,andthepublicingeneral.Itis,neverthe-

less,commercialinnaturebecauseGoogleanticipates

thatitwillenhanceitsservice’sutilizationbythepublic

andconcomitantlyincreaseadvertisingfees.”52

TheCongressionalreportwentontosaythatcreat-

inganindexofbooksalone,andincludingasnippetof

thetext,mostlikelywould

notbeacopyrightinfringe-

ment.However,thereportagreedthattheconflictarises

whenGooglecopiestheentirebook,whetheritmakes

thewholebookavailabletosearchersornot.Digitizing

isatransformationoftheoriginalwork,andthedigital

versioncouldverywellbelongtoGoogle,nottothe

author,publisher,ortheworldingeneral.

THEGAME-CHANGINGSETTLEMENT

Aftertwoyearsofnegotiations,Googleandtheplain-

tiffsreachedaresolutionthat

seemedtosatisfywriters

andpublishersandtoserveGoogle’sclients.Thedeal

makeselectronicbooksavailabletopubliclibrariesthat

theynevercouldhaveaffordedotherwise.Additionally,

readersandresearcherswill

havegreateraccesstorare

andout-of-printbooks.

Firstofall,the$125millionsettlementincluded$45mil-

lioninpaymentstoauthorswhosebooksGooglealready

hadscannedwithouttheirpermission.Googlewouldpay

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GoogleGrowsUp211

another$34.5milliontosetupandruntheBookRights

Registry,whichactsasaclaimandpaymentprocessing

organizationforcopyright

holders.Rightholdersinthe

Registrywillreceiveabout63percentofGoogle’sbook-

search-relatedrevenue.

Perhapsofgreaterimportance,thesettlementestab-

lishedappropriatewaystodigitizeandusecopy-

rightedbooks.UsingGoogle,readerswillbeableto

browseamassivenumberofbooksfromtheircom-

puters.Googlewillprovidethedigitalcopiestolibrar-

ies,andthosewhowanttoreadthebookfree,online,

candosoatU.S.publiclibraries.Readersalsocan

thedigitizedversiononlinefromGoogleiftheywish

todoso,andauthorswouldreceiveaportionofthe

saleprice.

Finally,participationisvoluntary.Authorsandpub-

lishersofcopyrighted

materialhavetherighttowith-

holdtheirbooksfromGoogledigitizationiftheywish.

SergeyBrinhailedtheagreementasagreatleapinthe

worldofideas.“Whilethisagreementisarealwin-win

forallofus,therealvictors

areallthereaders.Thetre-

mendouswealthofknowledgethatlieswithinthebooks

oftheworldwillnowbeattheirfingertips.”53

Afederalcourtjudgeapprovedthesettlementbefore

itwentintoeffect.

RoyBlountfeltthatthenatureofpublishingischang-

ing,andtheagreementgoesalongwaytowardprotecting

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GOOGLESPEAKS

writersinthisnewenvironment.“It’shardworkwriting

abook,”saidtheAuthorsGuildpresident,“anditseven

harderworkgettingpaidforit.Asareaderanda

researcher,I’llbedelightedtostopbymylocallibraryto

browsethestacksofsomeoftheworld’sgreatestlibrar-

ies.Asanauthor,well,weappreciatepaymentwhen

peopleuseourwork.Thisdealmakesgoodsense.”54

Asmightbeexpected,noteveryoneispleasedwith

theoutcome.BrewsterKahle,founderoftheInternet

Archive,feelsthatitgivesGoogletoomuchcontrolover

thebooksoftheworld.Thecompanystillhasacorner

ondigitizedbooks.

“Onecompanyistryingtobethelibrarysystem,

Kahlesaid,“Thisisnotgoodforasocietythatisbuilton

freespeech.Let’shavetheWorldWideWebratherthan

theiTunesofbooks.”55

(Note:FormoreonGoogle’scopyrightwoes,gotothe

section

“YouTube”inthechapter

“Google’sFuture.

Viacomisseeking$1billionindamagesclaimingthat

YouTubeshowspiratedcopiesofSouthParkandThe

DailyShow.)

LAWSUITSEVERYWHERE

Google’sinnovativeservicesraisechallenginglegalquestions

thatdemandcreativeandpracticalanswers.Weworkatthe

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GoogleGrowsUp213

crossroadsofnewtechnologiesandexistinglawstoprovide

thoseanswers,helpingGooglebuildinnovativeandimportant

productsforourusersaroundtheworld.56

—RecruitingadvertisementforlawyerstoworkatGoogle

“Wejoustatthecrossroads...”mightbeamoreappropriatewordingofthisGoogleadvertisementforlawyers.

Frompatent,copyright,andtrademarkinfringementto

clickfraudtowrongfuldismissal,Googlespendsalotof

timeincourt.Whileitistrue

thatGooglemakesalarge

target,italsoistrue,asthecompanyitselfnotes,thatit

isoperatinginafieldlitteredwithuncertaintiesbegging

toberesolvedinthecourtsoflaw.Someofthelawsuits

addresskeyissuesthatcoulddefinebothGoogleand

theInternetofthefuture.

IntermsofGoogle’sviabilityasacompany,themost

importantofallthelawsuitspittedGoogleagainstitsbusi-

nesspartner,Yahoo!.ItstartedinMay1999,whenGoTo

.comfiledapatentapplicationcalled“Systemandmethod

forinfluencingapositiononasearchresultlistgenerated

byacomputernetworksearchengine.”Therequestwas

grantedinJuly2001,asU.S.patent6269361.Arelated

patentalsowasawardedinAustralia.ItseemstheGoTo

.compatentbecametheformatforGoogle’sAdWords.

Justayearlater,Overture—priortoitsacquisitionby

Yahoo!—initiatedcopyrightinfringementproceedings

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GOOGLESPEAKS

underthispatentagainstGoogle,claimingthatAdWords

technologyborrowedtoomuchfromOverture.InFeb-

ruary2002,Googlehad

introducedAdWordsSelect,

whichallowedmarketerstobidforhigherplacementin

marketsections—atacticthathadsimilaritiestoOver-

ture’ssearch-listingauctions.

FollowingYahoo!’sacquisitionofOverture,thelaw-

suitwassettled,withGoogleagreeingtoissue2.7mil-

lionsharesofcommonstocktoYahoo!inexchangefor

aperpetuallicenseforOverture.

CompanieslargeandsmallhavesuedGooglemulti-

pletimesovertrademarkinfringement.Theyinclude

Geico,AmericanBlind&Wallpaper,andAmericanAir-

lines.In2004,Googlestartedallowingadvertiserstobid

onawidevarietyofsearchtermsintheUnitedStates

andCanada,includingthetrademarksoftheircom-

petitors.InMay2008,this

policywasexpandedtothe

UnitedKingdomandtoIreland.Googleadvertisersare

restrictedfromusingothercompanies’trademarksin

theiradvertisingtextifthetrademarkhasbeenregis-

teredwithGoogle’sAdvertisingLegalSupport

Unfortunately,Googleoftensettlesitssuitsoutofcourt,

withthedetailsofthesettlementkeptsecret.Whenthis

happens,importantlegalquestionsremainunanswered

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GoogleGrowsUp215

andmurkylegalwatersremainturgid.Suchwasthe

casewithAmericanAirlines.Theairlinewasoffended

thatwhenGooglesearchersenteredAA.com,itsweb-

site,theresultsincluded

websitesunrelatedto,orin

competitionwith,theairline.

AmericanAirlinesaskedGoogletostopsellingits

trademarkedtermstootheradvertisers.Google,itsaid,

was“utilizingourbrandthatwe’vebuiltformorethan

60yearsforthebenefitof

someoneelse.”57

TheAmericanAirlinessuitwassettledoutofcourt,

andthedetailswereconfidential.Itwasn’tclearwhat

thesuingcompaniesgainedandwhatGooglelearned.

However,ifthename“AmericanAirlines”orAA.com

nowisenteredintotheGooglesearchbox,onlyrefer-

encestoAmericanappear.

Googlehasgoodreasontoworkwithadvertiserstoset-

tlethissortofdispute.JohnGustafson,directorofdistribu-

tionandInternetstrategyat

theformerNorthwestAirlines

explained,“IfGooglehasaninabilitytohelpusresolve

issuesaboutabusesofourbrandthatwouldimpactour

decisiontoparticipateinfutureformsofadvertising.”58

Somelegalbattles,suchas

theonewithViacom,have

beenlongandhard-fought.Viacombroughtlegalaction

againstGoogleandYouTubefor$1billion,claimingthat

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GOOGLESPEAKS

YouTubeairsitscontentwithoutpayingforit.Comedi-

ansJonStewartandStephenColbertwerecalledaswit-

nessesinthecase,whichrevolvedaroundYouTube

clipsfrom

TheDailyShowand

TheColbertReport.

Viacomisoneofthebiggestcreatorsoftelevisionpro-

grammingintheworld.

Googlewentpostalwhenitwasorderedtoturnover

YouTubeuserdatatoViacom.Googleagain

claimed

thattheprivacyofitsuserswouldbeviolated.Google

deniedvirtuallyallofViacom

’sinfringementaccusa-

tionsandvolleyedbackoneofitsown:“Byseekingto

makecarriersandhosting

providersliableforInternet

communications,Viacom’scomplaintthreatenstheway

hundredsofmillionsofpeoplelegitimatelyexchange

information,news,entertainmentandpoliticaland

artisticexpression,”GooglesaidinanswertoViacom’s

suit.59

“Viacomisacompanybuiltfromlawsuits,lookat

theirhistory,”saidEricSchmidt.60

Finally,thetwocompaniesreachedanagreement

allowingGoogletoanonymizetheinformationbefore

lettingitgotoViacom.

AlthoughtheViacomsuitremainsunresolved,

DailyShowbeganputtingallitsshowsupforfreeonits

ownwebsiteandallowingviewerstosharethem.

Inamovethatistypicalof

SiliconValleycompanies,

evenasViacomandGooglewerelockedincombat,they

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GoogleGrowsUp217

announcedajointefforttotestvideoadvertising.The

jointprojectwillallowwebsiteownerstoputvideoclips

fromViacom,including

SpongeBobSquarePantsand

MTV’sLagunaBeach,ontheirpages.Theclipswould

containadvertisementsfromwhichGoogle,Viacom,

andotherproducerswillcollectrevenue.

WhentheItaliancompanyMediaset,controlledby

PrimeMinisterSilvioBerlusconi,suedYouTubeina

similarvideo-sharingdispute,aGooglespokeswoman

saidhercompanydidn’tseetheneedforthesuit.“There

isnoneedforlegalaction

.Weprohibitusers

fromuploadinginfringingmaterialandwecooperate

withallcopyrightholderstoidentifyandpromptly

removeinfringingcontentassoonasweareofficially

notified.”61

In2008,GoogleIndiawasorderedbytheBombayHigh

Courttorevealtheidentityofabloggerknownonlyas

“ToxicWriter,”whoisaccusedofdefamingGremach

Infrastructure,asmallconstructionoutfit.Googledid

notimmediatelyturnovertheinformationbutmaybe

forcedtoasthecasemovesforward.62

In2002,BrianReid,a52

-year-old,respectedSilicon

Valleyengineer,washiredatGoogleforasenior

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GOOGLESPEAKS

managementposition.Lessthantwoyearslater,Dr.Reid

wasfired.HesuedGoogleforagediscrimination.Reid,

anexperiencedhigh-techexecutive,claimedhewaslet

gobecausehedidn

’tfitintoGoogle

’syouth

-focused

culture.

Reidclaimedthathewassubjectedtomanyderoga-

toryage-relatedremarksatGoogle.Hewastoldhewas

slow,sluggish,andfuzzy,andthathisideaswere“obso-

lete”and“toooldtomatter.”Hewasreferredtoasthe

“oldguy”and“oldfuddy-duddy.”63

WhenaskedaboutthepossibilitythatBrinandPage

wereyouth

-obsessedandcontrolling,EricSchmidt,

himselfinhis50s,didn’tseetheissueasaproblem:“The

beautyofLarryandSergeyisthattheyarewell-known

quantities,thatifyoudon

’twanttoworkwiththem,

pleasedon’t.Slaverywasmadeillegalyearsago.”64

GOOGLEGETSANAIRPLANE

“NowondertheGoogleboys

weresofaroutoftheloop

ontheirnetneutralitylobbyingeffort,”theRatremarked

tohisminionsoverthetopofhishard-copyoftheWall

StreetJournal.“They’vebeendistractedbyother,more

importantissues—likewho

getswhatsizebedontheir

corporateplane.”65

Itseemedliketheendofaninnocentbutthrillingera

ofsimplicitywhenin2005SergeyandLarryacquired

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GoogleGrowsUp219

anairplane.Theyleased(fromthemselves)aBoeing

767-200wide-bodyjet,whichtypicallyseats200pas-

sengers,andhaditoutfittedtomeettheirneeds.It

becameapartyjetwithtwostaterooms,sittinganddin-

ingareas,andalargegalleywithseatingfor50.

Well,BillGateshasa767,sosharingonebetween

BrinandPageseemedalmostfrugal.

TheGoogleguysrequestedtypicallyinterestingmod-

ificationstotheirflyingspace,includinghammocks

wouldhangfromtheceiling.Asforthebeds,Eric

Schmidtreportedlyresolvedadisputeoverbedsizeby

parentaldecree:

“Sergey,youcanhavewhateverbed

youwantinyourroom;

Larry,youcanhavewhatever

kindofbedyouwantinyourbedroom.Let’smoveon.”66

Notonlydidtheoutfittingoftheplanemakeheadlines,

sodidtheberthingofit.Thecompanypays$1.3million

eachyeartoNASAtoparktheplaneatMoffettField,

isahopandajumpfromGoogleheadquarters.Thisisan

estimatedfourtimesthecostofparkingatnearbySan

FranciscoorSanJoseinternationalairports.

Googlenowhasseveralplanesinthefleet,including

aDornierAlphaJetfighterplane.Strictlyspeaking,the

planesdon’tbelongtoGoogle,butrathertoH211LLC,

asomewhatmysteriouscompanyreportedlycontrolled

byGoogletopbrass.GooglewillnottalkaboutH211

LLCownership,otherthantosaythatGoogleitself

holdsnoownershippositioninthecompany.

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GOOGLESPEAKS

AspartoftheMoffettFielddeal,NASAgetstoplace

instrumentsontheaircraftsandusesomeofthemfor

atmosphericresearch.Inoneinstance,theBoeing767

carriedNASAscientistsandthosefromtheSETIInstitute

toobservetheAurigidmeteorshower.NASA,

however,

getstousetheplaneonlywhenGoogledoesnot.Accord-

ingtoWebreports,NASAplannedtousethejetinthe

summerof2008toobserveandrecorddatafromthereen-

tryoftheJulesVerneATV

-1spacefreighter.However,

NASAhadtofindanotherplane(anoldDC-8asitturned

out)todocumenttheburn

-upinEarth

’satmosphere.

GoogleneededitsplanetoshuttlegueststoMontanafor

theweddingofSanFranciscoMayorGavinNewsom.

GOOGLEGETSASATELLITE

SergeyBrin,LarryPage,andtheirwivesflewtoVanden-

bergAirForceBaseonthecentralCaliforniacoastin

thelatesummerof2008toviewthelaunchofasatellite

carryingtheGooglelogointospace.Theeye-in-the-sky

waspropelledintotheatmospherebyBoeingonablaz-

ingDelta2Rocket.Fortwosuchspace-crazyindividuals

asLarryandSergey,itwasathrill.

GeoEye-1hasadealwithGoogle,givingitexclusive

commercialrightstotheimageryprovidedbythesatel-

lite.Thesearchgiantwillusethedataontheirmapping

services,GoogleMapsandGoogleEarth.TheGeoEye-1

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GoogleGrowsUp221

satelliteisalsopartoftheNextViewprogramoftheU.S.

NationalGeospatial-IntelligenceAgency.

Havingitsownspaceona

satellitegivesGoogle

greatercontrolovertheimagesitreceivesanduses.

Googlewillbeabletoprovidehigher,finerimages,

makingtheviewsofEarthandmapsmoredetailedand

easiertouse.Thesatellitewillconstantlyrefreshimages

andmakethemcurrent.Itwillorbit423milesupand

circleEarthmorethanadozentimesaday.Inoneday,

itcancollectcolorimagesofanareathesizeofNew

Mexicoorablack-and-whiteimagethesizeofTexas.

Inspiteoftheimprovements,Googlewouldliketo

seeevenbetterpicturessomeday:

Thenewsatelliteislimitedtoreleasingimagesforcom-

mercialuseatnohigherthan50centimeters(cm)reso-

lutionbygovernmentrestrictions.Mostofthehigh

resolutionsatelliteimageryisalreadyat60–100cmreso-

lution.So,thisnewsatelliteimagerywillatbestbe

slightlyhigherresolution.GoogleEarthalsohas

acquiredhigherresolutionaerialimagery(e.g.taken

fromplanes)thatisashigh

as5cmresolution(seeLas

Vegasforexample).Althoughdetailshaven

’tbeen

madeavailable,itispossiblethesatelliteiscapableof

higherresolutionimagery.Maybesomedaythegov-

ernmentwillallowhigher

resolutionimagerytobe

sold.67

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GOOGLESPEAKS

Theupgradesweren’timmediatelyseenonGoogle,

ever.“ThisnewsatellitewillnotmeanGoogleEarthwill

suddenlyhavelivedata,”wroteGoogleonitswebsite.

Itwillstillbetypicallyseveralweekstoafewmonths

beforenewdataisputintoGoogleEarth.Inaddition,

thesatelliteisstilldependentonhavingtheright

weatherconditionsbeforegettingagoodphoto(no

clouds,haze,smoke,dust,rightangleofthesun)worth

puttingintoGoogleEarth.But,thefasterdataacquisi-

tionshouldspeedthingsupsome.Havingmoresatel-

liteswilldefinitelyimprovethechancesfornewdata.68

c09.indd222

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GoodCitizen

Google

Googlehasarichlistofcorporate,volunteer,andphil-

anthropicprogramsdesignedtomaketheworldabet-

terplace.Someofthebeneficialprojectsresidewithin

orcomeoutofGooglesearch.Forexample,basedon

thenumberofsearchesforfluandcoldmedicine,

Googlehashelpedidentify

partsoftheworldexperi-

encingfluepidemics.Googlemapsstrivetohelppeople

findtheirwayaroundmanycitiesonfoot,bybicycle,or

viathemostenvironmentallyfriendlywaypossible.

Googlehasnumerousprogramsspecifically

targeted

tobettereducation,particularlyinscience.Thesearea

fewoftheactivities:

•TheSummerofCodeisathree-month,$2million

programforcomputersciencestudents.Google

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224GOOGLE

SPEAKS

offersstudentdevelopersstipendstowritecodefor

variousopen-source

projects.In2008,thecompany

partneredwith174open-source,freesoftware,and

technology-relatedgroupstoidentifyandfund

projects.Nearly7,100proposalswerereceived,of

which1,125wereselected.WhileGoogleusesthe

eventtolookforpromisingrecruits,thepurposeis

notrecruiting.Itistodevelopanewarrayofopen-

sourcecoding.

•InOctober2006,togetherwithLitCamandUNESCO’s

InstituteforLifelongLearning,Googlelaunched

LiteracyProject,offeringresourcesforteachers,lit-

eracygroups,andanyoneinterestedinpromoting

reading.

•GooglegivestheAnitaBorgScholarshiptoout-

standingwomenstudying

computerscienceinthe

UnitedStates,Canada,Australia,andEurope.

•KidsvisitGoogleregularlyforhands-onworkshops

andtolearnaboutexcitingcareersintechnology.

•GoogleisoneofthesponsorsfortheannualSally

RideScienceFestival,inwhichhundredsofgirlsin

grades5through8andtheirparentsspendtheday

atGoogle.Theyattendworkshops,participatein

scienceactivities,andlearnmoreaboutcareers

intechnology.Theyalsogetaterrificlunch.

•“IntroduceaGirltoEngineering”weektakesplace

annuallyaspartofU.S.NationalEngineersWeek.

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GoodCitizenGoogle225

EmployeesatseveralGoogle

officesbringtheir

daughterstoworkforaday.Googlealsolinksup

withschoolsandotherorganizationstoallowother

girlstotakepartintheday.

GOOGLE.ORG—THEPHILANTHROPICPART

WhiletheBlackGoogle

Network(BGN),anemployee-

drivenresourcegroup,wasoutandabouthelping

rebuildNewOrleansafterHurricaneKatrinaandthen

raisingmoneyforengineeringstudentsthroughthe

UnitedNegroCollegeFund,

otherfactionswithin

Googleweredoingtheirowngooddeeds.Atthesame

time,Google.orgseemedtoscanthewholeearthfor

worthwhileprojects.

PageandBringotGoogle.orgunderwayatthetime

theywentpublicbypushing

aplantoshareholdersto

commitresources,ashareofprofits,andemployeetime

toattackissuestheythoughttobethemosturgentchal-

lengesforsociety.

Google.orgisahybridphilanthropythroughwhich

thefounderspledgedtouse

bothprivateandnonprofit

resourcesforthegoodoftheworld.Theygobythe

1percentrule,whichmeansthat1percentofGoogle’s

equityandprofits,aswellas1percentofemployee

time,isallocatedtotheefforttomaketheworldcleaner,

safer,smarter,andmorelikelytosurvive.Theinputis

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226GOOGLE

SPEAKS

hybrid,andtheprojectsarehybridaswell,ranging

frompurenot

-for-profitinvestmentstogovernment

lobbyingcampaignstoputtingmoneyintocompanies

doingworthwhilethingswhileatthesametimeseek-

ingprofits.

GooglehiredDr.LarryBrilliantin2007tobeexecutive

directorofitsbillion-dollarphilanthropicarm.Brilliant,

whohassincemovedon,broughtexpertiseintechnol-

ogy,philanthropy,andpublichealth.SergeyandLarry

metwithBrilliantweeklyto

discussphilanthropicefforts.

Googlechosesixmaintargetinitiativesandcommit-

tedmorethan$85millioningrantsandinvestmentsto

furtherthesegoals:

RE<C(RenewableEnergyLessthanCoal):Projects

tomakeotherformsofenergycheaperthancoal,

oneofthefilthiestsourcesofenergy.Googlehas

madecommitmentstospecificcompaniesworking

tomakesolar,wind,andgeothermalenergymore

widelyusedandeconomicallyfeasible.

RechargeIT:Sevendifferentprojectsaimedat

makinghybrid,plug-invehiclesacommonform

oftransportation.Google.orgplannedtoinvest

$10millioninaprojectthatleadstosustainable

transportationsolutions.

PredictandPrevent:Fourprojectsthataddress

globalthreatstohealthandhunger.

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InformandEmpower:Alistofinitiativespromot-

ingbettereducation,information,andgovernment

participation.

FuelGrowthofSmall-andMedium-SizedEnter-

prises:Abusinessdevelopmenteffortaimedmostly

atruralandpoorpopulationsinAfrica.

SpecialProjectsandLearningGrants:Acatchall

categorythatoverlapsandexpandsontheother

fivecategories.

Google.orgalsostepsoutsideitsprimaryfocusareas

toworkondiseaseeradication,disasterrelief,andother

immediateneedsastheyflareuparoundtheworld.

GOOGLEANDTHEENVIRONMENT

Look,thisisourplan.Thesunisgoingtocontinuetoshine,the

windisgoingtoblow,there’salotofheatintheearth.Wind,

solar,geothermal.Ifwewouldjuststartusingthatandbuilda

gridthatwouldgetthatpowertowherethepeopleare,which

isusuallynotwhereallthatpoweris,wecouldsolvemostof

ourenergyproblems.Anotherthingwethinkisreallyimpor-

tantisplug-inhybrids.Soyousitthereandyougo,why

plug-in

hybrids?It

’smoreeconomicallyefficientandusesfarless

power,hugely,hugelylessoil,andbytheway,they’rebuiltin

America.So,forexample,inMichigan,whichhasthishuge

unemploymentproblem,youcanbuildthebatteries.Youcan

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228GOOGLE

SPEAKS

takeallthoselaid-offautoworkersandthepeoplewho

terriblyaffectedbythisdownturnandhavethemworkon

thingslikeautomobilesandalsothingslikeinsulationfor

homes,whichispaidbackforever.1

—EricSchmidt,onCNBC’sMadMoneywithJimCramer

Schmidtelaboratedonthepoint:

Wedidcalculationsthatsaidyoucouldsave$1tril-

lionover22yearsbyinvestinginsolar,windand

enhancedgeothermal,andplug-inhybrids.Thesum

ofthoseindustriesareAmericanjobsinstatesthat

havehighjoblessnessproblems.Thereislotsandlots

ofsun,windandheatintheEarththatisavailableall

thetime,whereaswearerunningoutofoil.Sothis

lowersenergyprices,increasesenergyindependence

andhelpstoaddresstheclimatechangeissue.Itseems

likeaperfectsolution[toU.S.economicproblems]if

youcanpullitoff.2

“We’veseentechnologiesthatwethinkcanreallymature

intoverycapableindustries

thatcanreallygenerate

energycheaperthancoal,andwedon’tseepeopletalk-

ingaboutthatasmuchaswe’dlike,”saidLarryPage.3

EricSchmidtadmittedthatalthoughthefinancial

andenvironmentalrewardsfordevelopingalternative

energysourcesmaybehigh,soarestartupcosts:

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Cleantechisalittlemorelikethesemiconductorbusi-

ness.Theamountofcapitalrequiredtodoitissignifi-

cantlyhigherthanintheIT(informationtechnology)

businessesI

’vebeeninvolvedwith.Theeconomicsfor

cleantechmaynotbethesameasGoogleeconomics.

Therearehighercapitalcosts,longersupplychains,

inventoryrisks,moremanufacturing,andalsotheneed

tobuildthatexpertiseintocompanies.4

RENEWABLEENERGYLESSTHANCOAL

Google.orgfinancessomeoftheRE

<Cinitiative,the

efforttofindcheapelectricity-generatingpowersources.

“Iknowit’salittlebitgeeky,”LarryPagesaidofthe

namerenewableenergylessthancoal.5

Currentlytherearenoenergysourcesthatproduce

electricityascheaplyascoal.Conversely,fewareasdirty

ascoal.Tocompeteeconomically,analternativetechnol-

ogywouldneedtocostfrom1centto3centsperkilowatt-

hour.Tomakesolarenergymorecompetitive,Google’s

goalistocutthecostbyasmuchas50percent.

Atthe2008Web2.0Conference,LarryBrilliant

explained:“It’sdifferentthanpickandshovelinvest-

ments.It

’simportantthatwemakemoneyonthese

investmentsandforthecompaniestomakeaprofit....If

theydon’tmakemoney,nooneelsewillandwewon’tbe

abletotakeadvantageofcapitalflowsandmarketforces.”

c10.indd229

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230GOOGLE

SPEAKS

GooglehasbeencriticizedforinvestinginRE<Cand

otherinitiativesandallocatinghundredsofmillionsof

dollarstoenergy-producing

technologiesthathaveno

relationtoitscorebusiness.However,the$45million

investmentcouldeventuallybothreduceGoogle’sown

energycostsandprovideadollarreturntothecompany.

“Ifwemeetthisgoal,andlarge

-scalerenewable

deploymentsarecheaperthancoal,theworldwillhave

theoptiontomeetasubstantialportionofelectricity

needsfromrenewablesourcesandsignificantlyreduce

carbonemissions,”Larry

said.“Weexpectthiswould

beagoodbusinessforusaswell.”6

GEOTHERMALPOWER

“Geothermal,ifitworks,isbetterthanintermittentpro-

ducersofsolarandwind,andit’salsoubiquitous,”said

Brilliantatthe2008Web2.0

Conference.

LarryPageisenthusiasticaboutthepossibilityof

thermalpower’spotential:“Ifyoudigdeepenough,you

getheat.Weneedtomakedrillingcheaper.”7Google.

orghassunkmorethan$10millionintoenhancedgeo-

thermalenergy.

ENERGYFROMTHESEA

NicolaTesladreamedofpluckingenergyfromtheair;

Googlersdreamofscoopingelectricalpowerfromthe

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sea.Oneoftheirideasistoplacecomputercenterson

floatingbargeswithanattachedpowerplanttokeepthe

computersrunning.Butitwon’tbeeasy.Sofar,theonly

sea-relatedpower

generatorsworkwithwaveactionas

itcrashestoshore,andtherearen’tmanyofthose.In

onewave-actionproject,thewholethingsankintothe

wateroffthecoastofOregon.Inothers,wildseashave

brokenuptheequipmentor

corrodeditbeyonduse.

ENERGY-EFFICIENTGOOGLEPLEX

Googleplannedtohire20to30engineersandexperts

topursueitsenergyconservationideasusingGoogle’s

ownfacilities,whichwillbetheguineapigsfortesting

promisingtechnologies.

In2007,Googleannounceditsintentionstooperate

inacarbon-neutralenvironmentbytheendoftheyear.

InMayofthatyear,Googleswitchedon9,212solarpan-

elsatGoogleplex.UsingGoogleEarth,theyare

visible

fromthesky,linedupinneatrowsontherooftopsand

evenatopparkingshelters.Googleplexatfirsthadthe

largestsolarinstallationofanycorporatefacility,but

soonanothercompanysurpassedit.However,aGoogle

spokesmansaysthatGoogleplexitselfwasn

’tcarbon

neutralbymid-2008.Infact,theMountainViewcampus

mayneverachievethatgoal.SomeGooglefacilities

aroundtheworldmayachieveabovethegoaland

others

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232GOOGLE

SPEAKS

mayhitbelow,butthatisokayaslongasthecompany

becomesnetneutral.

“ButjustprovidingenergyforGoogleisnotreally

enoughofagoal,”Pagesaid.“Wereallywanttoprovide

energythat’scheapenoughthatitcanreplacesignifi-

cantamountsofenergythatareusedtoday.”8

Thankstoitsstatedcommitmenttoallthings

environ-

mental,GoogledrewflakforSergeyandLarry’sper-

sonalairplane.TheGovernmentAccountingOffice

(GAO)estimatesthatglobalaircraftemissionsaccount

forapproximately3.5percentofthewarminggenerated

byhumanactivities.Itisn’teasytodefendtheuseofa

largeplanewithfewpassengers.

Whenaskedabouttheinefficienciesofthejet,Brin

acknowledgeditwasaproblem,butsaidsimply,“It’s

certainlyanissueI’ve

wrestledwith.”9

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Google’sFuture

WallStreetanalystsandsomecompetitorshaveasuperficial

viewofGoogleasagiantcollegedormwithafridge

stocked

withfreeOdwallajuice.1

—StephenE.Arnold,authorandtechnologyconsultant

ArnoldwarnstheworldnottounderestimateGoogle,its

talents,itspower,andespeciallyitsresolve.IfGoogle

hasshownusanythingsofar,itisthatPage,Brin,and

Schmidtwillbesmartandaggressiveinallaspectsof

theirbusiness.

Evenso,CharlesO’Reilly,professorofmanagement

atStanfordUniversityGraduateSchoolofBusiness,

says,“Gravityaffectsallorganizationsandwillinevita-

blyaffectGoogle.”2

NobodylookstoGoogleforclearsignalsastowhereit

isheaded.Itisn’tGoogle’spracticetogiveguidance.For

thelongesttime,Googleclaimedtobeallabout

search.

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GOOGLESPEAKS

MarcAndreessen,oneofthefoundersofNetscape,said

heexpectsGoogletoexpandeverywhere,inbothon-

andofflinecomputing.“GoogleisAndyKaufman—the

latecomedian....ThewholethingwithAndyKaufman

wasyoucouldnevertellwhenhewasjoking.Google

comesoutwithastraight

faceandsays,‘We’rejustgoing

tobeasearchengine.We’renotgoingtobedoinganyof

thisotherstuff.’ButIamquitesuretheyarejoking.”3

ThearrayofproductsGoogleintroducedinthepast

fewyearsindicatesthattheywereindeedjoking.The

companywebsiteproclaims:

What’snextfromGoogle?It’shardtosay.Wedon’t

talkmuchaboutwhatliesahead,becausewebelieve

oneofourchiefcompetitiveadvantagestobesurprise.

Youcanalwaystakeapeekatsomeoftheideasthat

ourengineersarecurrentlykickingaroundbyvisiting

thematGoogleLabs.Havefun,butbesuretowear

yoursafetygoggles.4

ThequestionsaheadforGooglearethesameasthey

areforallyoungcompanies,especiallythosethatgetoff

tosuchaswiftstart.Someoftheanswers,giveninear-

liersegments,aresummarizedhere:

•Canthecompanymanagegrowth?Theanswer:

Sofar,profitsaregood,butinvestmentsinfuture

c11.indd234

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Google’sFuture235

technologieshaveshownmixedresults.“Nameany

long-termtechnologybetyoucanthinkof,”wrote

“genome-tailoreddrugs,artificialintelli-

gence,thespaceelevator—andchancesare,there’s

ateamatGoogleplexworkingonanapplication.”5

Googlehasbeendaringinitspursuitofbright

ideasbuthashadtoabandonmanyofthemafter

investingalargeamountof

timeandmoney.

•Canitretainbrightandcompetentemployees?

AlthoughGoogledoesn’treleasefiguresonemployee

attrition,itappearsthatmanyearlyparticipants

havetakentheirmoneyandleft.YetGoogleisan

interestingplacetoworkandmanystay.

•Canthecompanydealwithintensecompetitors

whoshootforbig,successfultargets?Thiswillbe

thewarthatneverends.Googlehasastrong

franchiseinsearch

technology,butthatdoesn

meanitwillhangontoitslead.BenCamm-Jones,

newseditorofWebUsermagazine,pointsoutthat

competitorswillbechasingGoogleandtryingto

dosearchbetter.“Ifthere’s

goingtobeanything,it

willbesemanticwebtechnologythatovertakes

Google—ifit’sareallycompellingpropositionand

ifsomehowwecanshakepeopleoutofthisbelief

thatGoogleistheonlywaytofindinformationon

theweb.”6

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GOOGLESPEAKS

•Willthecompanymaturewithgraceandstrength?

Theworldisfullof

unknowns,butsofarGoogle

hashadluckandbrainsonitsside.Thereareheavy

oddsthatGooglewillbeonourlipsandatour

fingertipsforalongtime.

ThegreatestdangertoGoogle’sfuturethatLarryand

Sergeyfaceis“thecultofgenius.”Theideaisthatthey

aresosmarttheycan’tmakeawrongmove.Buteven

geniusescanmakemistakes.

EricSchmidtisn’tsoworriedaboutafewmistakes:

Wetrytofocusonthefuture.

Internallywedotalkabout

strategyandinnovation,notaboutcompetitors.It’smuch

bettertolookforwardtothekindsofthingswecando.

Mediacoverageisallobsessedaboutwinnersandlosers.

Infactwhatisreally

importantabouttechnologyisyou

havetheopportunitytoredefinethegameoverandover

...andthewinnerredefinesthegame.7

SchmidthastossedoutafewcluesastohowGoogle

willdefineandredefinethefuture.Thecompanyclearly

hasengagedMicrosoftinatechnologywarbyattacking

itonitsownterritory.Googlehaspositioneditselfto

bringdownthesoftwaregiantbyenteringMicrosoft’s

businesswithcheaperandeasiertouseproducts.

SchmidthassaidthatGooglenowrealizesitcan’tdo

everythingaloneandhopestoincreaseitsparticipation

c11.indd236

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Google’sFuture237

instrategicpartnerships,suchastheonesithashad

withDell,MySpace,andAdobe.

Additionally,Googlewillkeepasharpeyeonhowthe

economyisgoing.Withallofitsstrengths,Googlewashurt

whenthe2008recessionarrived.“Allofusarevulnera-

ble,”Schmidtwarnedinthefallof2008.“It’saracebetween

acontractioninadvertising,whichwouldaffecteverybody,

andaverypositiveshiftfromofflinetoonline.”8

Formerlyaliberalspender,Googlewillkeepacloser

eyeonexpensesbecause“it’stherightthingtodo.”9

Thecompanyhascutbackonfreefood,limitedthe

numberofcontractorsonboard,andtrimmedhiringof

permanentemployees.Google’scapitalexpendituresin

thethirdquarterof2008

totaled$452million,an18per-

centdecreasefromthepreviousyear.Asitcurbedcosts

Google’sbankaccountswelledto$14.4billionincash,

upfrom$12.7billionthreemonthsearlier.10

TherecessionmaybeGoogle’sbestfriend.Duringa

recessionmanysmaller,lesshardycompetitorsdropout

oftherace.TheindustryleaderssuchasGoogleeither

acquiretheweakercompaniesorcapturetheircustom-

ers.Highunemployment

rateswillhelpemployeereten-

tion,sincemanyworkersprefertostayputinhardtimes,

andtherearen’tmanyotherjobsoutthereforthemto

goto.Mostconvenientofall,recessionsletGoogledoa

littlehousecleaning.The

economybecomeseasyjustifi-

cationforreviewingthelonglistofexperimentalprojects

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GOOGLESPEAKS

anddeletingthosewithmarginalchancesofcontribut-

ingtothebottomline.

ProfessorPrabudevKonana,writingaboutAmerican

industryandcompanieslikeGoogleinparticular,

doesn’tclaimtoknowGoogle’sfuture.Buthe

believes

thatAmericanhigh-techcompanieswillcontinuetobe

worldleaders:

The“AmericanDream”isdeeprootedintheAmerican

psyche.Itisnotaboutowningathree-cargarageor

gas-guzzlingSUVsbutitisaboutinnovationand

opportunities.U.S.universitiesarethebestinthe

worldforinnovationandcontinuetoattractworld-

widetalent.U.S.firmscontinuetoinvestenormous

amountsofresourcesinR&

D.Alltheseformthefoun-

dationforcapitalismtothriveandarenotgoingtogo

away....ThereissomethingintheAmericanspirit—

inquisitiveness,individuality,education,risk

-taking

ability,entrepreneurship,andventurefunds—tonur-

tureideasintogreatbusinesses.11

ARTIFICIALINTELLIGENCE

Hiddenbehinditssimplewhitepages,Googlehasalreadycre-

atedwhatitsaysisoneofthe

mostsophisticatedartificial

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Google’sFuture239

intelligencesystemseverbuilt.Inafractionofasecond,itcan

evaluatemillionsofvariablesaboutitsusersand

advertisers,

correlatethemwithitspotentialdatabaseofbillionsofads

anddeliverthemessagetowhicheachuserislikelyto

respond.12

—SaulHansell,writer,NewYorkTimes

Duringaquestion-and-answersessionafteraMay2002

speechatStanfordUniversity,LarryPagesaidthat

Googlewouldfulfillitsmissiononlywhenitssearch

enginewas“AI-complete....Youguysknowwhatthat

means?That’sartificialintelligence.”13

PagetoldtheAmericanAssociationfortheAdvance-

mentofSciencethatartificialintelligencewasgettinga

badrap,butthatitwasdoableandonitsway.“Mypre-

dictionisthatwhenAIhappens,it’sgoingto[require]a

lotofcomputation.Notsomuchcleveralgorithms.Just

alotofcomputation.Ifyoulookat[ahuman’s]program-

ming,yourDNA,it’sabout600megabytes,compressed.

’ssmallerthananymodernoperatingsystem.

SmallerthanLinuxorWindows....Soyourprogram

algorithmsprobablyaren’tthatcomplicated.Wehave

somepeopleatGooglewhoaretryingtobuildartificial

intelligence,andtodoitatalargescale....Idon’tthinkit’sthatfaroff.”14

Likehumans,AIlearnsfromexperienceandlogic:

“Thesystemcanuseallthesignalsavailable,”explained

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GOOGLESPEAKS

JeffHuber,Google

’svicepresidentforengineering,

“andthesystemitselflearnsthecorrelationsbetween

them.”15

Pageexplained:

Artificialintelligencewouldbetheultimateversionof

Google.Sowehavetheultimatesearchenginethat

wouldunderstandeverythingontheWeb.Itwould

understandexactlywhatyouwanted,anditwould

giveyoutherightthing.That

’sobviouslyartificial

intelligence,tobeabletoansweranyquestion,basi-

cally,becausealmosteverythingisontheWeb,right?

We’renowhereneardoingthatnow.However,wecan

getincrementallyclosertothat,andthatisbasically

whatweworkon.Andthat’stremendouslyinteresting

fromanintellectualstandpoint.16

Whenaskedwhattheperfectsearchenginewouldbe,

SergeyBrin,founderofGoogle,said,“Itwouldbe

themindofGod.”17

HarvardProfessorNicholasCarrsaidthatitisclear

thatGoogle’sfoundersbelievethatsomedaytherewill

beintelligencegreaterthanwhatwethinkofashuman

intelligence.“Whetherthatcomesoutofalltheworld’s

computersnetworkedtogether,orwhetheritcomes

fromcomputersintegratedwithourbrains,Idon

know,andI’mnotsurethatGoogleknows.Butthetop

executivesatGooglesaythatthecompany’sgoalisto

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Google’sFuture241

pioneerthatnewformofintelligence.Andthemore

closelythattheycanreplicateorevenexpandhowpeo-

ples’mindswork,themoremoneytheymake.”18

Carrthendeliveredawarning:

IthinkifGoogle’susers

wereawareofthatintention,

theymightbelessenthusiasticabouttheprospectthan

themathematiciansandcomputerscientistsatGoogle

seemtobe.Alotofpeopleareworriedwhatasuperior

intelligencewouldmeanforhumanbeings.I

’mnot

talkingaboutGooglerobotswalkingaroundand

pushinghumansintolines.ButGoogleseemsintenton

creatingamachinethat’sabletodoalotofourthink-

ingforus.Whenwebegintorelyonamachinefor

memoryanddecisionmaking,youhavetowonder

whathappenstoourfreewill.19

ONWARDTOWEB3.0

Withthespeedofinstantmessaging,thecomputing

worldisevolvingintoitsthirdgeneration.Web1.0was

centeredoncomputersoftwarecompaniesthatarosein

the1980sand1990s,suchasMicrosoft,Oracle,and

Lotus.Thesecompaniesdevelopedsoftwarethatallowed

foruseandenhancementofcomputersandeverything

insidethecomputer.Theseearlysoftwareprograms

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GOOGLESPEAKS

(whicharestillaroundanduseful)wereproduced,

reproduced,packaged,andmarketedmuchthewaytra-

ditionalproductsare.

Followingtheburstofthedot-combubbleinthefall

of2001,theconceptofWeb2.0emerged.Web2.0enter-

prises,mostclearlyexemplifiedbyGoogle,Napster,and

Amazon.com,existedonlyontheInternet.Theyoffered

aprimaryserviceand,inGoogle’scase,oftenearned

moneyasanancillarytothatservice.

GoogleCEOEricSchmidtspokeattheSeoulDigital

ForumandwasaskedtodefineWeb3.0byamemberof

theaudience.AfterfirstjokingthatWeb2.0isonly“a

marketingterm,”Schmidtlaunchedintoadefinitionof

Web3.0.HesaidthatwhileWeb2.0wasbasedonAjax

techniquesofbuildingapplications,Web3.0wouldbe

“applicationsthatarepiecedtogether.

”Theapplica-

tionswillberelativelysmallandperhapsspecialized,

thedatais“inthecloud,”theapplicationscanrunonall

kindsofdevices(PCormobile),andtheyareveryfast,

areeasilycustomized,andaredistributedvirally(by

socialnetworks,e-mail,andsoon).Additionally,Schmidt

notedthatWeb3.0businesseswillfindlowbarriersof

entry,yetcouldwindupwithverylargecompaniesthat

workeverywhere.

Google’sgreatchallengeistocontinuetocomeup

withproductsthatofferInternetuserswhattheywant

andneedandthatmakemoneyinthenewenvironment.

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Google’sFuture243

Thismaynotbeeasy.Google’ssocialnetworkingefforts

haveyettocontributemuchtothebottomline.

Googlehasintroducedarangeofproductsthatwork

inthecloud,includingGmailanditssuiteofproductiv-

itysoftware.OneofGoogle

’smostapparentWeb3.0

toolswasGoogleMashupEditor(GME),aWeb-based

programthatallowedindividualsandbusinessesto

developtheirownWebproducts,sites,andprocessesby

combiningvarioustypesofmedia.GMEwasinthebeta

stagebutwasplacedindoubtwhenGooglebegantrim-

mingitsproducts.

CLOUDCOMPUTING

A.J.Johnson,a12

-year-oldbaseballsluggerfromLa

Jolla,California,takescloudcomputingforgranted.He

logsontotheInterneteacheveningtodomuchofhis

homework,accessesandcompleteshisassignments

fromtheGooglewebsite,getsfeedbackfromhisteacher

onearlierwork,andsees

whatliesahead.Hecandohis

lessonsfromwhereverhehasaccesstotheInternet—

Mom’shouse,Dad’shouse,orevenGrandmother’shouse.

Hecandoitfromanywhere,andthedogcan’teatit.

Yetthereisthepossibility

thatthecloudmayeatit,or

atleastmakeitinaccessibleforacertainlengthoftime.

Aboycanalwayshope.A.J.andhisfellowstudents

aren’ttheonlyonesworking“inthecloud”thesedays.

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GOOGLESPEAKS

TheLilaG.FrederickPilotMiddleSchoolinBoston

takescloudhomeworkastepfurther.Theschoolhasno

textbooks.Studentspickuplaptopsatthestartofthe

schooldayandhandthembackattheend.Bothteachers

andstudentsmaintainblogs,staffandparentschatonline

aboutthechildren’swork,andassignmentsareturnedin

usinganelectronic“dropbox”ontheschool’swebsite.20

Whatiscloudcomputing?“Ifyoucanwalkintoany

libraryorInternetcaféandsitdownatanycomputer,

notcaringwhatoperatingsystemorbrowseryou

usingandaccessaservice,thatserviceiscloudbased,”

explainedauthorGeorgeReese.21

Googlehashailedcloudcomputingasthefutureof

theInternetandanareainwhichitwillexcel.Michael

Lorenc,aGooglesalesandoperationsmanager,spoke

toagroupofstudentsaboutcomputinginthefuture.

“Webelievethatpartofthebiginnovation,thebignew

idea,willbecloudcomputing,”hesaid.“Thisisbecause

youngpeoplecomingup,thoseunder24yearsold,have

specificexpectationsregardingtheroletheInternet

playsintheirlives.”22

•Theywanttohavecommunityatthecenteroftheir

Internetexperience.

•Theywantinformationtobemobile.

•Theyexpecttobeincontrolofthecontentthey

consumeanddisseminate.23

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Google’sFuture245

Itisestimatedthatby2013atleastone-fifthofinfor-

mationtechnologyworkwillbedoneonline,perhaps

neversavedonacomputerharddriveorportablestor-

agedevice.By2019,50percentofhighschoolcourses

willbetaughtonthecloud.24

Cloudcomputingisquicklyreplacingmuchofthat

dataformerlystoredon

corporateandpersonalcom-

puters.ManyofGoogle’sapplications,suchasitscalen-

dar,spreadsheets,andpresentationsoftware,areused

athome,school,ortheoffice,butresideonGoogle’s

owncomputers.

ToEricSchmidt,thismakesalotofsense.“Thebasic

argumentis,ifyouthinkaboutit,itwouldbebetterfor

youtohaveallthedataandalltheapplicationsthatyou

useonaserversomewhere,andthenwhatevercompu-

terordeviceyou’renear

youwouldbeabletouse,”said

Schmidt.“Let’ssayyouhaveaPCoraMacathomeand

attheoffice,andyouhaveaBlackBerryandaportable

andsoforthandsoon.You’reconstantlymovingfiles

around.Whathappensifyou

dropyourThinkPadand

breakit?”

It’sjustabettermodeltohavethecomputationand

theapplicationsusewhatwecallacloud,somewhere

intheInternet.I,amongotherpeople,havebeentalk-

ingaboutthisfor15years,

wellbeforeGooglewas

founded.Itturnedouttobereallyhardtopulloff.But

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GOOGLESPEAKS

nowfinallythesebroadband

networksarefastenough

thatyoucanactuallydoit.Youjustdon

’tneedto

alwayshaveeverythingonyourlocalcomputer.25

Thecloudisacontroversialbuzzwordthatstillfright-

enssomecompanies,

especiallylargeoperationsthat

want,need,orthinktheyneedfullcontrolovertheir

data.Theyworrythatiftheprovidercompanygoesbelly

uptheirdatamaydisappearalongwiththeprovider.

Therecouldbehackers,andwhatifthesystemgoes

downatacriticaltimefortheirbusiness?Theywonder

iftheirintellectualpropertyorproprietaryinformation

issafestoredonline.Failuresdohappen.

Newer,smalleroperations,however,arefinding

cloudcomputingsocheap,easy,andportablethatthey

overlookorfindwaystoprotectagainsttheuncertain-

“Anystart

-upthatdoesn

’tusecloudcomputing

rightnowisatacompetitivedisadvantage,”claimsTien

Tzuo,founderoftheonlinebillingcompanyZuora.26

Infact,cloudcomputingisn’tasexoticorrareasitmay

sound.Tenyearsago,todoanythingonacomputeryou

neededtobuyandinstallsoftware.Notanymore;e-mail

inboxesisstoredonline,or

inthecloud,ratherthanona

personalcomputer.Servicesthatstorephotographsand

socialnetworkingsitesalsoarecloud-based.Amazonhas

longofferedpay-as-you-usebusinessservicesthroughits

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Google’sFuture247

website.Microsoftofferssoftwaretouseonline,asdoes

Apple.Bothcompaniesallowuserstobackuptheir

filesonline.

Google’scloudcomputing

powerarisesfromthe

founders’earlylackoffunds.LarryandSergeyhadto

scroungeallthePCstheycouldfindandlinkthem

together.Itworkedsowelltheystilldoitthesameway.

Thecompanycontinuestorelyonamassivelinkednet-

workofsmallcomputerstoservecustomers.Theadvan-

tageofGoogle’sserverfarmsisthattheyarescattered

aroundtheworldandprovidebackupforoneanother.If

onecomputerinthemixgoesout,itusuallydoesn’tbring

downthesystem.Employees

justswitchthedefunctone

outwithanewone.

Asfarbackas2006,expertsguessedthatGooglehadas

manyasonemillionmachinesrunningonLinux,process-

ingqueries.27AlthoughGoogledoesn’tsharethattypeof

information,thenumberofmachinesdefinitelyismuch

largernow,givingGooglethestrength,depth,andbreadth

tohandleitsusers’wishestooperateinthecloud.

Itallsoundsremarkablyconvenient,butassome

userssuspect,theplanisn’t

perfectyet.Thereareweak-

nesses,andGooglehasacknowledgeditsownsuscepti-

bilitytoerror:“Oursystemsarevulnerabletodamageor

interruptionfromearthquakes,terroristattacks,floods,

fires,powerloss,

telecommunicationsfailures,computer

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GOOGLESPEAKS

viruses,computerdenialofserviceorotherattemptsto

harmoursystem,andsimilarevents.”28

Indeed,Googlehasexperiencedserviceinterrup-

tions,suchastheoneinNovember2003,whenabout

20percentofGoogle’scustomerswerewithoutservice

forabout30minutes.In

2008,itsGmailservicewent

outforseveralhoursonseveraldays.Thisalarmed

manyusers,especiallythosewhohopedtoengagein

cloudcomputing.ButEricSchmidtshruggedthewhole

thingoff.“Thatwasjustascrewup,”heexplained.29

Hiscasualreactionmaybeannoyingtothosewho

neededtoperformcrucialworkduringthedowntime,

butseldomistheircloudinformationpermanentlylost.

Googlehasmademanycomputerusersaccustomedto

instantgratification.Likeprivacy,it’snotalwaysthere.

YOUTUBE

WhatdoInternetuserslovemorethanGoogle?Surely

theanswerisYouTube.IfyouwanttocheckoutAlaska

GovernorSarahPalin

’spressconferenceataturkey

farm,orifyouwanttohearWill.i.am’sstirring“Yeswe

can”videoorarewillingtoviewsocietyinitsfunniest

andrawestform,YouTubeisforyou.

Theleaderinonlinevideo,

YouTubeattracts100

millionpeopleeachweektoaccessitsinventoryoffive

billionvideos.YouTubeprovidesavarietyofthingsto

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Google’sFuture249

watch,evenseveralhoursadayof2008Olympiccover-

ageonitsowndedicatedchannel.

PartofthefunofYouTubeisthechanceforfame.

Peopleposthomemadevideos,someofthemcrude

andothers—suchasthehyperactivecharacterFred

fashionistaWilliamSledd—quiteclever.

JuanMan(nothisrealname)describedhimselfas

aimlessandfriendlesswhenhestrolledintoaSydney,

Australia,shoppingcenterholdingasignofferingfree

hugstoanyonewhocaredtohaveone.Whenavideoof

hishuggingescapadeswasuploadedonYouTube,he

becameaglobalsensation.“OneweekIwaswashing

dishesinSydney,thenextweekIwasontheOprah

WinfreyShow,”hesaid.“Ihavefriends,Ihaveafian-

cée,Ihaveapurpose.AndIhaveneverwasheddishes

since.Unlesstheyweremyown,ofcourse.”30

MuchofthecontentofYouTube,unfortunately,has

beencommandeeredfrompeopleandcompaniesthat

earntheirlivingsproducingit.Theseproducersare

lessthanhappyatfindingtheirvideoandaudiocontent

freeontheInternet.Theirdispleasurehasledtosome

well-publicizedcourtcases,suchasViacom’s$1billion

lawsuitagainstYouTubefor“massiveintentionalcopy-

rightinfringement,

”whichisstillmakingitsway

throughthelegalsystem.(Formoreonthat,gotothe

section“LawsuitsEverywhere”inthechapter“Google

GrowsUp.”)

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GOOGLESPEAKS

In2006,Googlepaid$1.76billiontoacquireYouTube,

basedonthepopularityofthesiteanditspotentialasan

advertisingmachine.Sofar,YouTubehasn’tdelivered

thegoods.By2008,itsrevenueswereonlyabout$200

million,disappointingconsideringthenumberofpeo-

pleusingthesite.OneoftheproblemsisthatYouTube

cannotlegallyselladsthatarebasedonorrunwith

copyrightedmaterial,suchasnewsclipsormaterial

fromViacom.

EricSchmidtkeepspromisingthatsalesatYouTube

willjumponceGooglefindstherightwaytoattractpeo-

pletoitsadvertisements.Schmidthassuggestedthat

theperfectcommercialapproachatYouTubeis

“the

holygrail.”31Thepersonwhofindsaneffectivewayto

capitalizeonYouTubewillhavediscoveredagreat

treasure.

THEGOOGLEPHONE

EricSchmidtwasaskedwhathesawasthenextbig

thingintechnology:“Mobile,mobile,mobile—it’sprob-

ablythemostwideopenspaceoutthererightnow.”32

Wearingin-line

rollerblades,flauntingtheirusualjun-

ior-highhaircuts,LarryandSergeysteppedoutinfront

oftheNewYorkmediainthefallof2008tointroduce

Google’slong-awaitedG1phone,ahandheldmultitasking

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Google’sFuture251

devicethatcompeteswithApple’siPhone(forwhich,not

surprisingly,Googleprovidessomesoftware).Google

itselfbroughtoutthefirstG1Androidphonebutalsois

franchisingthetechnologytoT-Mobile,SonyEricsson,

andotherphonecompaniesthatwishtomarketit.

Themobile-phonemarketishighlycompetitiveand

crowdedwithsuchweightyplayersasResearchin

MotionLtd.,Nokia,Qualcomm,andApple.

Googleisa

latecomerintothephonesoftwaremarket,butGoogle

goeswherethemoneyis.Thelargenumberofcombat-

antsonthefieldisn’taproblemforthem,sinceGoogle

hasthecashtoholdonuntilcompetitionandtheecon-

omysortthemselvesout.

Whatisanandroid?Itisarobotthatresemblesahuman,

generallybothinappearanceandbehavior.

Android

alsoisthegivennameoftheplatformonwhichGoogle

builtitsG1phone.Google’sAndroidisapowerfulpocket

computer,thefirstcomplete,open,andfreemobile

deviceplatform.

GoogledidnotcreateAndroid.Itacquiredthecom-

panyin2005,heralding

Google’sentryintothemobile-

softwaremarket.ItthenturnedAndroidintotheOpen

HandsetAlliance,invitingothercompaniesanddevelop-

erstofreelyaddadaptationsandapplications.

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GOOGLESPEAKS

AndroidwasbuiltatopApacheopen-sourcesoftware

because,asGooglesaysonitswebsite,

TheApachelicenseallows

manufacturersandmobile

operatorstoinnovateusingtheplatformwithoutthe

requirementtocontributethoseinnovationsbackto

theopensourcecommunity.Becausetheseinnovations

anddifferentiatedfeaturescanbekeptproprietary,

manufacturersandmobileoperatorsareprotected

fromthe

“viralinfection

”problemoftenassociated

withotherlicenses.33

Thegoalwastocomeupwithflexible,stretchablesoft-

warethatwouldmakeusingtheInternetassmoothon

amobilephoneasitisonacomputer.“We’renotbuild-

ingaphone,we’rebuildingaLinux-basedOS(operat-

ingsystem),whichislikelytobequitedifferentfrom

theiPhone,”Schmidtsaid.

TheGoogle/AndroidwebsiteexpandedonSchmidt’s

remark:

Butthere’smoretotheAndroidstory.Notonlydoesit

allowallapplicationsopenaccesstothephone’sfunc-

tionality;theplatformitselfwillalsobeopen.The

OpenHandsetAlliancehasannounceditsintentionto

opensourcetheentireAndroidplatformbytheendof

theyear[2008].AlongwiththeothermembersoftheAlli-

ance,wehopethatAndroidcanprovideameaningful

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Google’sFuture253

contributiontoallplayersinthemobileecosystem:the

developers,thewirelesscarriers,thehandset

manufac-

turers,etc.Everyonewillbefreetoadoptandadaptthe

technologyastheyseefit.Bydoingso,wehopethat

userswillgetbetter,morecapablephoneswithpower-

fulWebbrowsersandaccesstoarichcatalogueofinno-

vativemobileapplications.35

Theplatformsmaybefreefordevelopment,buttheG1

phoneisnot.ItispricedatjustslightlylessthanApple’s

expensiveiPhone.Googlehassetthevalueofthephone

ataround$400.

TheG1isabulkylittlebeastwithanawkwardslide-

outkeyboard,butitisagreattoyforthosewhoenjoy

playingwiththeircellphones:Sergeylikesitbecause“It’s

justveryexcitingformeasacomputergeektobeableto

haveaphonethatIcanplay

withandmodifyandinno-

vateupon,justlikeIhavewithcomputersinthepast.”36

What’sthephonelike?Inthesummerof2008,

Googlereleasedasoftwaredevelopmentkit(SKF)that

programmerscouldusetocreatemobile-phoneappli-

cationsforthecompany’snewAndroidplatform.They

thenofferedtheAndroidDeveloper’sChallengetoget

theapplicationsrollingin.

Tomakethechallengemorealluring,thecompanyprom-

isedcashprizesrangingfrom$25,000to$275,000—up

atotalof$1million—todeveloperswhoseapplications

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GOOGLESPEAKS

werechosenbyapanelofjudges.Morethan1,700

applicationsweredeveloped.

37Asaresult,theGoogle

phonehassomeniftyapplications,althoughsomeof

themmaybeentertainingforonly10or15minutes.For

example,GooglelikestoshowaGooglertossingthe

phoneintotheairandcatchingit,withthephone

reportingexactlyhowlongthetossandcatchtook.38

Thephonewillmeasureaperson’scarbonfootprinton

theearthandgivetipsonhowtoputlessstrainon

nature.Ownerscandownloadsoftwareallowingthem

toscanthebarcodeofaproductandcomparisonshop

ontheInternet.

Thephonecomeswiththeusualservicessuchas

camera,maps,e-mail,andinstantmessaging.Butthere

isacatch:IthastheGooglestrapattachedtoit.Users

mustsignupforaGmailaccounttousethephoneand

itsfeatures.Thereis,ofcourse,apurposeforthat.The

GmailleashallowsGoogletocreateauniqueidentifier

foreachcustomerthatcanbe

usedtotargetadstothe

phoneuser.“That’swhytheydidAndroid,”explained

RogerEntner,seniorvicepresidentofNielsenAIG,“to

helpsatisfyGoogle’sneedforadrevenues.”39

WHITESPACES

LarryPagewasecstaticwhentheFederalCommunica-

tionsCommission(FCC)votedtoopenupanunusedbroad-

casttelevisionspectrumforothertypesofbroadcasts:

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Google’sFuture255

WewillsoonhaveWi-Fionsteroids,sincethesespec-

trumsignalshavemuchlongerrangethantoday’sWi-

Fitechnologyandbroadbandaccesscanbespread

usingfewerbasestationsresultinginbettercoverage

atlowercost.AnditiswonderfulthattheFCChas

adoptedthesamesuccessfulunlicensedmodelusedfor

Wi-Fi,whichhasresultedinaprojected1billionWi-Fi

chipsbeingproducedthisyear.40

Whitespacesaretheunusedbroadcastspectrumsthat

sitbetweentelevisionchannelsandwhichlikelycanbe

usedforhigh-speedwirelesstransmission.

GooglelobbiedferventlyinWashington,D.C.and

ontheInternetforsuchachange.Googlegathered

morethan13,000signatures

supportingitspointofview

throughits“FreetheAirways”campaign.

Othermajorcompanies,includingMicrosoftand

Motorola,joinedGoogleinthecrusade.Page,however,

waspointmanonthesix-yeareffort.AGooglespokes-

personsaidthatPagehada“personalinterest”inthe

matter.Wedon’tknowforsurewhatthepersonalinter-

estwas,exceptthatPageseeswhitespacesasapoten-

tialmediumforadvertising.

Larryacknowledgedthathisinterestinexpanded

accesstowhitespaceswasn

’tentirelyaltruistic.

Googlestandsachanceofexpandingitsadvertising

revenues20to30percentthankstotheuseofwhite

spaces.

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GOOGLESPEAKS

TheFCCapprovalwasevidenceoftheinfluence

GooglehasgainedinWashington,D.C.41

Whyarethewhitespacesofsuchinteresttocompu-

terandInternetcompanies?Whitespacesareanother

freeinfrastructure,muchliketheInternet,onwhicha

businesscanbebuiltorexpanded.Powerfulcellphone

companieshadbeenpressuringthegovernmenttoauc-

tionoffwhitespacelicensestothehighestbidder,mak-

ingiteasierfortheestablished,wealthiestcompanies

tocontrolWi-Fiusage.

LarrysaidthatthedevelopmentofWi-Fiitselfshows

whatentrepreneurial

scientistscandoiftheygeta

chance.“WealluseWi-Fiallthetime.Wi-Fiwasan

accident.Itwasauselessspectrum.Itwasputinthe

licenseregime.Engineerscamealongandworkedonit

andmadeitbetterandnowwehaveexcellentWi-Fi.”

But,hesaid,Wi-Fiasitisdistributednowhaslimita-

tions,especiallyinthespeedanddistanceitwilltravel.

Whitespacesofferthepossibilityofallowinglower-cost

devicesandcanservewellinruralareaswherebroad-

bandisn

’tavailableinotherways.

“I’mreally,really

excitedaboutit.”42And,henoted,theexpansionofwhite

spacecomes“atnocosttoanyoneinthecountry.”

Still,therewereworriesaboutinterferencewithtele-

visionandwireless

microphones.Severalearly

testsofwhitespacesdevicesdidn’tturnoutwell,and

somebelievethatWi-Fiinwhitespacesjustwon’twork.

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Google’sFuture257

TheFCC

’sOffi

ceofEngineeringandTechnology

releasedareportonJuly31,2007,withresultsfromits

investigationoftwopreliminarydevices.Thereport

concludedthatthedevicesdidnotreliablysensethe

presenceoftelevisiontransmissionsorotherpreexist-

ingusers.Forthatreason,thedeviceswerenotdeemed

acceptableforuseintheircurrentstate,andnofurther

testingwasthoughttobe

necessary.

However,amonthlater,Microsoftfiledadocument

withtheFCCinwhichitsengineersdescribedameet-

ingthattheyhadwithrepresentativesfromtheOffice

ofEngineeringandTechnology.TheMicrosoft

showedtheFCCresultsfromtheirtestsdonewith

identicalprototypedevicesandusingidenticaltesting

methods.Microsoftdiddetectothersignalsandthe

equipmentperformedexactlyasexpected.Inthepres-

enceofFCCengineers,theMicrosoftengineersdisas-

sembledthedevicethattheFCChadtestedandfound

thatitsscannerhadbeendamagedanddidnotwork

properly,whichexplainedtheFCC’sinabilitytoknow

whenchannelswerebeingused.

Eventuallyitwasdeterminedthatsensingtechnol-

ogywaseffectivebutwasnotfoolproofindealingwith

interference.Whencoupledwithgeolocationtechnol-

ogy,though,interferencewaslimitedtoamanageable

level.WiththeadditionoftheGPSinformation,the

whitespaceswerereleasedforuse.

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GOOGLESPEAKS

GooglehadtriedunsuccessfullytogetintotheWi-Fi

businessbefore,startingwithacitywidesystemforSan

Francisco.ThatpartnershipwithEarthlinkfellapart.

AnEarthlinkexecutivewasquotedassayingthatitwas

a“goodideabutabadbusiness.”43

Larryinsistedthatopeningthewhitespacesbenefit-

tedeveryone:ItwastherightthingfortheFCCtodo.By

makingtheInterneteasier,cheaper,andavailablein

remoteareas,itwouldputmorepeopleontherightside

oftheInternetdivide.

Asanengineer,Iwasalsoreallygratifiedtoseethat

theFCCdecidedtoputscienceoverpolitics.Foryears

thebroadcastinglobbyandothershavetriedtospread

fearandconfusionaboutthistechnology,ratherthan

allowtheFCC’sengineerstosimplydotheirwork.44

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TheDominant

Powerinthe

Industry?

It’sGoogle’sworld.Wejustliveinit.1

—ChrisTolles,vicepresidentofmarketing,TopixInc.

Ithink,thereforeIGoogle.2

—DavidSmith,columnist,TheGuardian

BloggerPaulFordpublishedanarticleanticipating

thefuture:“HowGoogleBeatAmazonandeBaytothe

SemanticWeb.”Heillustratedthestorywitharough-

cutcartoonofagiantrobotstandingontheglobeand

declaring,“IamGooglebot,IcontrolEarth.”Mostread-

erssawthecartoonasaslapatGoogle,exceptforthose

whoworkedatGoogle.TheycontactedFordrequesting

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GOOGLESPEAKS

thattheybeallowedtoputthedoodleont-shirts.Ford

saidno,butthecartoonpoppeduponwalls,bulletin

boards,anddesksalloverGoogleoffices.3

SoundslikeGoogleisfullofitself,doesn’tit?Agener-

ousamountofhubrisisessentialtobeingaSiliconVal-

leyleader.“Thereisacertain‘wecandothis’arrogance

inSiliconValley,

”admitsMarcTarpenning,software

engineerandoneofthefoundersofTeslaMotors.“But

allentrepreneursneedabitofthatbecauseifyoureally

understoodhowdifficultthisstuffis,youwouldjust

neverdoit.”4

WhileitisobviousthatGooglerulesthekingdomof

search,eventheexpertscan’tgetahandleontheramifica-

tionsofGoogle’sdominance.BusinessWeekwrotein2007

thatthecompany’sdata-

gatheringcapabilityworriesmany

people.TechnologyhistorianGeorgeDyson,whowrote

DarwinAmongtheMachines:TheEvolutionofGlobal

Intelligence,believesGooglecouldposeanationaldefense

problemsimplybyvirtueofitshugewarehouseofdata.

“Thatmuchmoneyandpowerconcentratedinoneplace

canbedangerous,”saysDyson,whosometimesadvises

theDefenseDepartmentonpotentialthreats.Whilehe

doesn’tthinkGoogleyetrepresentssuchamenace,he

raisesamoreobviousconcern:Google’svastnetwork,

nowasubstantialpieceoftheInternetitself,is

“very

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TheDominantPowerintheIndustry?261

quicklybecomingvitalnationalsecurityinfrastructure.”

Shouldanythinghappentothecompany,hesays,

throughmarketforces,terroristattacksonserver

farms,

orsomethingelse,thatcouldcompromisenational

defense.5

EstherDyson,aventurecapitalistwhohasacloserela-

tionshipwithGoogle,wrote:

Thedangerliesinthe

concentrationofinformation—

arguablyaconcentrationofpower—thatGooglerep-

resents.Googledoesn’tmerelypointuserstoexisting

informationontheWeb;italsocollectsinformation

thatitdoesn’tshareaboutitsusers’behavior.Ifyou

canusepatternsinGooglesearchestotrackfluout-

breaksandpredictamovie’scommercialprospects,

canyoualsouseittoforecastmarketmovementsor

evenrevolutions?6

Orevenhowtomanipulateandinfluencesearchersto

thinkandactincertainways?ThethingaboutGoogle

ismostpeopledon’trealizehowmuchitknowsabout

themandhowreadilyitcantailorresponse,informa-

tion,advertisements,andsoon,toswaytheirthinking.

Theverynatureofpropagandaandinfluenceis

peopletendtobeunawareofhowtheyarebeing

workedover.

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GOOGLESPEAKS

Googleappearstobeanunstoppableonlinegiant,

capableofgrowingatthesamespeedthattheInternet

grows.Onacorporatelevel,Googlechallengesevery-

oneevenremotelynearit.In2008,itcameoutwiththe

GPhonetoconfrontApple’siPhone,andChrometodefy

Microsoft,andthenlaunchedKnol,apeer

-reviewed

encyclopediatoundercutWikipedia.

AndyGrove,formerCEOofIntel,describedGoogleas

acompany“onsteroids,withafingerineveryindustry.”

“Microsoft’spower,

”Groveobserved,

“wasintra

industry,Google’spowerisshapingwhat’shappening

tootherindustries.”7

Google’sMarissaMayer

insiststhecompany’spower

islegitimateandwell-deserved:“Ourinfluencecomes

fromtheend-usersandthetrustthatwe’vebuiltwith

them.Ifwestopputtingtheirneedsfirst,thatwillstop.”8

EstherDysonagreed,arguingthatpeopleare

alwaysfreetouseanothersearchengineiftheythink

somethingunhealthyisgoingon.Dysonconcluded,

AGooglethatisaccountabletoitsusers—searchers,

advertisers,investors,andgovernments—islikelytobe

abetteroutfitthatdoesmoregoodintoday’srelatively

openmarket.Inshort,thereisnoregulatorysystem

thatItrustmorethanthecurrentmessyworldofcon-

flictinginterests.Whatevershort

-termtemptationsit

faces—tomanipulateitssearchresults,useprivate

information,orthrowitsweightaround—Google,itis

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clear,couldlosealotbysuccumbingtotheminaworld

whereitseverymoveiswatched.9

Dyson’sreasoningissimilartocommentsregardingthe

creditandfinancialservicesindustriespriortotheir

2008catastrophes.Inotherwords,shewassayingthe

market,competitors,and

customerskeepthesystem

honestandefficient.Therecentfailureofthatconcept

convincedmostAmericansthatwhileafree

-market

systemhasacrucialcreativityandenergy,everyindus-

tryneedssomeguidingprinciplesandoversight.

EventhoughmostcurbstoGoogle’spowerhavecome

fromthecourts,ithasbeendisciplinedbythefree

marketsystem.

Eachyear,thousandsofeBay

enthusiaststrektoBos-

tonfortheonlineconsignmentstore’ssellers’convention.

In2007,Googleshowedup,too,staginga“LetFreedom

Ring”partytoprotesteBay’srefusaltoletmerchantsuse

GoogleCheckout.“Wewerenotpleasedbythisnotionof

theGoogleCheckoutpartyandthemarketingaroundit,I

willtellyouthat,”saideBayCEOMegWhitman.10

CheckoutisadirectcompetitorwitheBay’spayment

system,PayPal,whicheBayacquiredin2002.PayPalis

byfartheonlinepayment

leader,withmorethan

143millionuseraccountsworldwide.Agemofan

acquisition,PayPalhasbeengrowingfasterthaneBay’s

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GOOGLESPEAKS

coreauctionandshoppingbusiness.RajivDutta,who

overseesPayPal,said,“IamconvincedPayPalisone

daygoingtobebiggerthaneBay.”11

“We’redefendingourselvesaggressivelywith

PayPal,”Whitmansaid.“Thatisoneofourcorebusi-

nesses.We’renotgoingtoletthatgoawaytosomeone

who’dkindofliketobeinthebusiness.”12

Asithappens,eBayalsoisamongGoogle’slargestadver-

tisers,spendingtensof

millionsofdollarsayearonkey-

wordadvertising.WhitmanpromptlycanceledallofitsU.S.

Googleadsformorethanaweek.Googlegotthemessage

andcanceledits“freedom”partyjustaspromptly.

GOOGLE,MICROSOFT,ANDTHEINTERNET

CIVILWAR

In2003,SergeyBrintoldtheNewYorkTimesthathe

wouldn’tknowinglychallengeMicrosoft.

“Netscape

antagonizedMicrosoft,

”hesaid.

“Wearenotputting

ourselvesinthebull’seyeasNetscapedid.”13Ayear

later,initsIPOprospectus,Googlewrote,“Wefacesig-

nificantcompetitionfromMicrosoftandYahoo!.”

Atfirst,Googleinsistedthat

ithadnofighttopickwith

Microsoft.Thatgraduallychanged.In2006,EricSchmidt

wasaskedwhoGoogle’sprimarycompetitorswere:

Well,todaywecompetewithYahoo!allthetimebe-

causetheyaretheothercompanythathasatargeted

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advertisingnetwork.AndMicrosoftcontinuestoclaim

toenterthe[search]market,butwereallyhaven’tseen

themyet,they’rejust

gettingstarted.I’msureeventu-

allyMicrosoftwillbeacompetitor.Soit’sreallythose

threecompanies,Google,Yahoo!andMicrosoft.14

“Wejustseethehistoryof[Microsoft]behavinganti-

competitivelyand...not

playingfair,”saidBrin.“SoI

thinkwewantto...lookattheareawherethatpower

canbeabused.”15

Googlesoontooktheoffense,andabitterrivalry

escalatedbetweenthecompanies.NotonlydidGoogle

throwthegauntletdownonpracticallyeverypath

Microsoftwasfollowing,theyopenedarecruitingoffice

notfarfromMicrosoft

’sheadquartersinRedmond,

Washington,andmaderaidsonMicrosoft’stalentpool.

Butmoresignificantly,itofferedGoogleApps,freeonline

productivitysoftwaresimilartoMicrosoftOffice.Then

cameGmail,andin2008,GooglelaunchedChrome,the

freebrowserthatchallengedoneofMicrosoft

’smost

lucrativeproducts,InternetExplorer.

MicrosoftChairmanSteveBallmerbecamesoangry

overlosingkeyemployeestoGoogle,thathedeclared

war:“I’mgoingtofuckingkillGoogle.”16

WhenaskedbyCNBC’sJimCramerwhetherMicro-

softshouldworryaboutGoogle’scloudcomputing,Eric

Schmidtshotback,“IneverworryaboutMicrosoft.”17

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GOOGLESPEAKS

RupertMurdochwouldagreewithSchmidtthatGoogle

doesn’tneedtoworry.“They’vegotsomuchmoneythey

don’tknowwhattodowithit,”Murdochsaid.“Theykeep

employingpeople,testingnewideas,tryingthings,

puttingoutnewfreeapplications,relyingonadvertising

forincome.Whichmakesthemunbelievably,unbelieva-

blycompetitivewithwhatMicrosoftwouldchargeforthe

samethings.”18

WiredmagazinewrotethatthewarbetweenMicrosoft

andGoogleis“aclassicbattlebetweenyouthandexpe-

rience,orasGooglelikestobelieve,goodandevil.”19

Just20orsoyearsearlier,Microsoftwasthewhiz-kid

company—young,vigorous,

andcocky.Intime,Micro-

softlostthelusterofthenew.Thensomecorporate

actions,suchasthewayitcrushedcompetitorNetscape,

madeitthescourgeofSiliconValley.Manypeoplewere

pleasedthattherewasnowacompanythatcouldgo

nose-to-nosewithMicrosoftandholditsown.

Microsoft,ascouldbeexpected,firedbackatGoogle’s

advanceintoitsterritory.WhenthetestversionofInter-

netExplorer(IE)8cameout,itappearedtohaveafea-

turethatmightblockGoogle’stargetedadvertising.Fora

companythatreliesalmostentirelyonWebadvertising

foritsrevenues,andconsideringhowpervasivetheIE

browseris,thatcouldbeapowerfulstrike.

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THEBATTLEOFYAHOO!

The2008fightoverYahoo!turnedtheintenserivalry

betweenthetwocompaniesintoopenwarfare.Itesca-

latedintoabattleofbiblicalproportions.Itwasawarfor

powerandcontrolinthedigitalworld—theformerDavid

versustheformerGoliath—GoogleagainstMicrosoft.

Asearlyas2006,Yahoo!

’sfinancialresultsbegan

toweaken,largelyduetocompetitionfromGoogle.

GooglewasgoingafterYahoo!’scorebusinesseswithits

Gmail,GoogleVideo,personals,andotherfeatures

withinGoogleBase.

Latethatyear,MicrosoftandYahoo!begandiscus-

sionsabouthookingup,eitherinpartnershipsorby

acquisition.Yahoo!sentMicrosoftpacking,sayingthe

timewasn’tright.ThesituationatYahoo!continuedto

deteriorate,andinJanuary2008,Ballmermadea$44

billion,$31-per-shareoffertoacquireYahoo!.

Yahoo!hadmanyattributesthatMicrosoftfound

attractive,especiallyitssearchtechnologyanditsowner-

shipofOverture.Yahoo!balkedatMicrosoft’soffer,and

inMay,Microsoftuppedtheanteto$47.5billion,or$33

pershare.Again,Yahoo!ChairmanJerryYangrefused,

sayingthatYahoo!wasworthatleast$37pershare.

Bynow,shareholders,especiallyinvestorCarlIcahn,

wereupsetwithYang.ThebattleforcontrolofYahoo!

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GOOGLESPEAKS

eventuallypromptedseveralpensionfundstosuethe

Yahoo!boardforrebuffingtheMicrosoftoffer.Yang’s

actionsalsopittedbillionaireinvestorIcahnagainstBill

Miller,LeggMasonchiefinvestmentofficerandCEO.

IcahninitiallydemandedthatYahoo!acceptMicrosoft’s

purchaseoffer,buteventuallyhemadepeace

withYang

and,withtwootherrepresentatives,joinedtheboardof

directors.MillersidedwithYahoo!,butleftthedoor

openforMicrosofttomakeanothertry.

InJune,Googleputadoginthefightwhenitoffered

Yahoo!asearchpartnershiptobolsteritsearnings.

ThedealwasexpectedtoyieldYahoo!$800millionin

annualadvertisingrevenues.

“There’snoquestionin

ourviewthatanindependentYahoo!isbetter,

”said

Schmidt,addingthatit“willprovidemorecompetition

insearchandotheradvertisingmarkets,inparticularin

displayadvertising.”20

“Microsofthasalonghistoryofhavingdealsthatlook

quitegoodandendup

lookingnotsogoodwhenyou

readthefineprint,”Schmidtsaid.21

FinancialTimesofLondondidn

’tlikethe

smellofGoogle

’soffer.Thenewspapersaidthedeal

demonstratedGoogleatitsworst,

“acombinationof

naïveinsoucianceandthinlyveiledscheming.”

TheinsouciancewasshownbySergeyBrin,who

earlierthisyearblithelytoldagroupofreporters

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(includingthisone)thatthealliancewasallabout

helpingoutoldfriends.After

all,Yahoo!’sJerryYang

andDavidFilohadlenttheGooglefoundersahand

whentheywerejuststartingout,andanyway,their

companies’cultureswereverysimilar.

Theschemingwastheobviousulteriormotivehere,

toblockMicrosoft.Askedabouthowtheysetcorporate

strategy,Googleexecutivesalwaysdenytheyhave

suchthoughts:Everythingtheydoisforthebenefitof

thecustomers.Butthispartnershipbetrayedone

ofGoogle

’smostpowerfulpsychoses,itsparanoia

aboutMicrosoft.22

Withinmonths,itbecameclearthattheU.S.Justice

DepartmentandCanadianregulatorswouldnotapprove

theGoogle–Yahoo!deal,sinceitgavethetwocompanies

90percentofthepaidsearchmarket.Advertisersalso

wereupinarmsaboutthealliance,sayingitwouldgive

GoogleandYahoo!toomuchinfluenceoverpricingand

otheronlineadvertisingissues.

GooglepulledoutinearlyNovember.Thecompany’s

chieflegalofficerDavidDrummondexplained:“We’re

ofcoursedisappointedthatthisdealwon’tbemoving

ahead.Butwe

’renotgoingtolettheprospectofa

lengthylegalbattledistractusfromourcoremission.

Thatwouldbeliketryingtodrivedowntheroadof

innovationwiththeparkingbrakeon.”23

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GOOGLESPEAKS

Atthesametime,theeconomyandthefinancialmar-

ketswentintoaslide.Yahoo!’ssharepricefelloffacliff.

Yahoo!wentbacktoMicrosoft,hatinhand,butitwas

toolate.CEOSteveBallmerwasnolongerinterested.

“Wemadeanoffer,wemadeanotheroffer,anditwas

clearthatYahoo!didn’twanttosellthebusinesstous

andwemovedon,”Ballmersaid.“Wearenotinterested

ingoingbackandre-lookingatanacquisition.Idon’t

knowwhytheywouldbe

either,frankly.Theyturnedus

downat$33ashare.”24

TheskirmishendedwithGoogletheclearvictor.

MicrosoftwasstoppedfromacquiringYahoo!andbuild-

ingafortressinthesearchbusiness.Yahoo!wasso

shatteredthatbytheendoftheyear,itssharepricehad

declined48percent.Froma52-weekhighof$30.25,

Yahoo!endedtheyearatabout$12pershare.Froma

companyMicrosoftwaswillingtobuyformorethan

$47billion,Yahoo!endedwithmarketcapitalizationof

$17.8billion.Yahoo!announceditwouldlayoff10per-

centofitsworkforce.Oncethesecondleadingsearch

engine,Yahoo!nolongerpresentedmuchofanopposi-

tiontoGoogle.

WhileGooglecertainlyhasshakenMicrosoft

’sconfi-

denceonthesearchandadvertisingfronts,Microsoft

reignssupremeinotherareas.Awriterfor

Forbes

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askedthisquestion:“Haveyouheardofanybigcompa-

niesthathaveditchedMicrosoftOfficeandswitched

tothefreeGoogleApps?Meneither....Googlehas

failedonthatfrontbecause

itsappssimplyaren’tthat

compelling.”25

Thewarisnotover,althoughmostexpertsfigure

Googleisinthelead.Theprizeisbig,anditwillbea

fightworthwatching.“Microsoft...continuestotryto

catcharunawayfreighttrainwithGoogle,andthereal-

ityisMicrosoft’striedorganicallysomanytimesand

reallyhaslittletoshowforit,”saidCitigroupGlobal

MarketsInc.softwareanalystBrentThill.26

“They[Google]arethe

companythatisgoingtohave

moreinfluenceandmorecontroloverthestructureof

theworldinformationindustrythananyother,

”said

DavidB.Yoffie,aprofessorattheHarvardBusiness

School.“TherightwaytothinkaboutGoogleis,they

arethenextMicrosoft.”27

GATESONGOOGLE

BillGatesadmittedthatGoogle“kickedourbutts”on

search-enginetechnology.Helaterannouncedthat

Microsoftwouldlaunchitsownsearchengine.28“Google

isstill,youknow,perfect,

”Gatessaidin2005.

“The

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GOOGLESPEAKS

bubble’sstillfloating.Youshouldbuytheirstockatany

price.Wehadaten-yearperiodlikethat.”29

Microsoftwasattheheightofitsattempttoacquire

Yahoo!whenGateswas

askedhowhefeltaboutthefact

thatGooglewasinventedattheWilliamGatesBuilding

atStanfordUniversity.Gatesbeganhisusualboxing

shufflewhenaskedaquestion,bobbingandglancing

up,down,andsideways.“

Competitionisagoodthing,”

hesaid(pause,shuffle).“Ontheotherhand,nobody’s

doingaverygoodjobofcompetingwithGoogleright

now.”30

Thenextday,toGoogle

’sdelight,Microsoftaban-

doneditsbidtopurchaseYahoo!.

WhenGatesheardthatGoogleagreedtoChinesecen-

sorshiprulessoitcouldattainaccesstothelucrative

Chinesemarket,hechortledthatperhapsthecompany

mottoshouldbecome,“Do

lessevil.”31

c12.indd272

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Conclusion

Withinthelastsevendays,Googlehasalteredandaugmentedmy

perceptionsoftulips,mindcontrol,Japaneseplatform

shoes,vio-

lentAfricandictatorships,3-Dhigh-definitionwallpaper,spicy

chickendishes,tiledhottubs,biologicalimage

-processing

schemes,Chihuahuahygiene,andmanymorecriticaltopics.

Clearly,thankstoGoogle,IamnotthemanIwassevendaysago.1

—JohnGaeta,visualeffectssupervisor,

theMatrixtrilogy

Imaginedoingthatforsomeone?Imaginedoingthatfor

90millionpeopleaday?

LarryPageandSergeyBrincan

saytheyhavechangedtheworld.Theirstory,andthat

ofGoogle,makesoneofthemostinterestingtalesof

thiscenturyorthebest

“sofar,

HomerSimpson

wouldsay.And,

admitsBrin,

“thenumber-onefactor

thathascontributedtooursuccessoverthepastseven

yearshasbeenluck.”2

both01.indd273

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CONCLUSION

IthasbeenadramaticjourneyfromwhenPageand

BrincelebratedmilestonesbygoingtoBurgerKingfor

hamburgersandwhentheyplayedrollerhockeyinthe

parkinglotwithemployees.Thosewerethegood-old-

days.Googlehasmovedontothegoodnewdaysandto

atimewhenithasenormousresponsibilitytothepub-

lic,toemployees,andtoshareholders.

“Therearepeoplewhothinkweareplentyfullofour-

selvesrightnow,butfrominsideatleast,itdoesn’tlook

thatway,

”saidCraigSilverstein,Google

’stechnology

directoranditsfirstemployee.“Ithinkwhatkeepsus

humbleisrealizinghowmuchfurtherwehavetogo.”3

Googlealsopresentsoneofthemostperplexingpar-

adoxesofourtime.WeloveGoogle,weuseitobses-

sively,webareoursoulstoit.Theinformationmakes

ushealthier,wealthier,andwiser.Informationisthe

underpinningofpersonalandpoliticalfreedom.

Ontheotherhand,wedon’tunderstandhowGoogle

reallyworks.Itfeelsasifitknowstoomuchaboutus

andhastoomuchcontroloverus.Wearesuspiciousof

it.Thewholeprocessofsearchandsearch

-related

advertisingchallengesage-oldconceptsofpersonalpri-

vacy.Whenitcomestopropertyrights,Googleseemsto

havetheattitude,“What’smineismine;what’syoursis

mine.”

“Asacorporation,

”wrote

BusinessWeek,

“it’softena

cipher,itsintentionsandmethodsconcealedbyalgorithms

both01.indd274

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Conclusion275

thatlookimpenetrableandimpersonal.Yetthesearch

engineandtheblockbuster

businessbuiltatopitutterly

dependsuponmillionsofpeoplesharingthroughsearches

theirmostintimatedesires,anduponthousandsofbusi-

nesseswillingtoopentheirdatastorehousestofeed

Google’svoraciousdigitalmaw.”4

Thequestionthatmostpeopleaskaboutthecom-

panyis,“Dotheyreallydonoevil?”Itistheiroft-stated

intentionnottodoevil,andverylikelytheydon’tdo

evilonpurpose.ButtheGoogleguysarehuman,and

Googleisacomplex

business.Differentpeoplehave

differentdefinitionsofevil.Initsdozenyearsofexist-

ence,Googlehaschangeditsowndefinitionofright

andwrong.Originally,thefoundersrefusedtooffer

horoscopes,financialadvice,orchat.Horoscopeswere

consideredbogus,financialadviceoftensuspect,and

chatsuperfluous.Theyoriginallyclaimednottoaccept

pornographyadvertisements,butthensuchadswould

mysteriouslyappear.Thoseidealshavelonggoneby

thewayside.

Ah,well,evilhappens.

WritinginCanada’sTheGlobeandMailnewspaper,

MattHarleyandGrantRobertsoninsistthat“Googleisa

workinprogress,andalwayswillbe.TheMountain

View,Calif.,Companyexistsinastateofperpetualbeta,

andit’sacorporatephilosophythathashelpeddrivethe

company’sseemingboundlessinnovation.”5

both01.indd275

3/25/092:46:30PM

CONCLUSION

Aslongasthecompanycontinueswithhighprofita-

bilityandoutstandinggrowth,itcangetawaywithalot

ofmisstepsandmistakes.Butoncethosetwomeasure-

mentsofsuccesslag,itwilldealwiththesameharsh

judgmentsothermature

companiesmustface.Infact,

someofthosecriticismshavebegun.

TripChowdhry,asenioranalystatGlobalEquities

Research,claimsthatbeingthekingofsearchwon’tbe

enoughtosustainGoogleoverthelongterm:“Name

meanythingthey’vebeensuccessfulinbesidessearch,”

Chowdhryasks.“Ithinktheboardandmanagementof

Googleneedsatotaloverhaul.”6

Certainlyinvestorshavesignaledtheirdoubtsabout

Google.Thestockstarted

2008offstrongwithshares

hoveringabove$690—slightlybelowtheall-timehigh

of$747.24asofNovember2007.Butas2008progressed,

thecompany’sstockplunged56percent,partlybecause

offearsthatitsrevenuegrowthwouldtank.Google’s

corebusinesshasinfactslowed,butheldupreasonably

wellduringthe2008to2009financialturmoil.

Despitethelegitimatefears,Googleremainsastable

organizationandatrustedbrandwithastrongfran-

chise.ThenumberofsearchesdoneonGooglegrows

everymonth.

Itsadrevenueshavealsobeenonafasttrack.In

2007,Googleoutstrippedeveryothermediacompany,

whetheritwastheWeb,TV,print,orradio.Google’sad

both01.indd276

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Conclusion277

revenuesoutstripped17majormediabusinesses,

includingNewsCorp,TimeWarnerCable,Viacom,

Yahoo!,Microsoft,AOL,theNewYorkTimes,andCBS

Radio.Onlineadrevenueforthese17companiesgrew

9percentthatyear,whiletotalonlinerevenuesgrew28

percent.Google’sonlineadrevenuesgrew44percent

comparedwith15percentforthecombinedonlinead

revenuesofYahoo!,Microsoft,andAOL.

7Revenue

growthdeclinedslightlyin2008andwasexpectedto

slidemorein2009.Still,Googleleadsitspackandcon-

tinuestorakeinthemoney.Thepositivesideofthe

companyfar,faroutweighsthenegative.8

EricSchmidtannouncedadefensiveplanforGoogle

butsaidhewasbullishabouttheeconomicoutlookfor

SiliconValleycompanies.

“ThisisthesixthorseventhcycleI’veseeninSilicon

Valley.Ithinkwe’rebetterpositionedthanever.”Then

heplacedtheblamesquarelyonthearea

’sterrific

weather,andLarryPageagreed:

“Idon’tthinkthere’sanywhereelseyou’dratherbe.

We’reinvestorsinTesla,forexample.It’sprettyamaz-

ingyoucandriveanelectriccarwitha220-milerange.

Thoseareproducedhere.Idon’tseethoseanywhere

elseintheworld.”9

SiliconValleyisamazing,butbeforetheendof2008,

Googleannounceditwastrimmingoverheadandlaying

both01.indd277

3/25/092:46:31PM

CONCLUSION

offmuchofits10,000-strongcontractworkforce.

Tesla,withitsbacklogofsalestomoviestarsandindus-

trymoguls,feltthepinch.

Admittedly,Google’ssurvivalisanythingbutguaran-

teed.Thecompanyoperatesinaquick-changing,highly

competitiveenvironment—itisinvolvedinaglobalsci-

entificandeconomicboxingmatch.Yet,ifthefounders

continuetobeascautiousandcraftyastheyhavebeen

inthepast,theywillprosper.“Googlewillkeeppushing

theenvelope,”predictedwriterJohnBattelle.“It’s

ofthethingsthatseemstomakethemhappy.”10

LESSONSFROMLARRYANDSERGEY

WhatcanwelearnfromtheGooglestory?

•TheAmericandreamisaliveandwell.Itmay

flicker,itmayfade,itmayseemfaraway,butitstill

beckonsusforward.Anythingispossible.

•Ahigh-qualityeducationsystemisanimportant

incubator.ThankstoMontessorischools,public

schools,greatstateuniversities,andStanford

versity,theGoogleguyswereabletolearnwhat

theyneededtoknowtoformulateanddeveloptheir

ideas.WhentheyarrivedatStanford,theyfound

theknowledge,technology,equipment,andeven

financingtheyneeded.Bythen,theywereready

both01.indd278

3/25/092:46:31PM

Conclusion279

forit.Stanfordisanexcellentexampleofhowa

greatuniversitycanpromotescienceandbusiness

innovation,buttherearenumerousotherexam-

ples.BothMicrosoftandFacebookwerelaunched

onHarvard’scomputers.

•Don’tfocusonthemoney;focusinsteadon

excellentresults.

•Havefun.Otherswillbe

morethanwillingtosup-

portyouinyourwork,especiallyifitisplayfuland

pleasant.

•Don’tbeevil—oratleasttryyourbesttoconduct

businessinanhonestandfairmanner.Thisone

isn’teasy,butit’sacommendableaspiration.

THETRAITSOFTHOSEWHOCHANGETHEWORLD

I’vewrittenaboutmanypeoplewhohavechangedthe

worldwiththeirideasandactions.TheseincludeBillGates

ofMicrosoft,WarrenBuffettofBerkshireHathaway,Jack

WelchofGeneralElectric,TedTurner,creatorofCNN,

OprahWinfrey,andothers.I’moftenaskedwhatcharac-

teristicstheseexceptionalpeoplehaveincommon.

•Foremost,

theytrustthemselvesandfollowtheir

ownideas.Theyhaveintuition,butmoreimportant,

theylistentothatinnervoice.

Intuitionisnota

supernaturalphenomenon.Itisacombinationof

both01.indd279

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CONCLUSION

yourtotalknowledge,yourexperience,your

thinkingandfeelingself,andyourpresentmindset.

Itcanbeyourautomaticpilot.

•Freshthinkingisessential.Astheworldoftechnol-

ogyevolves,newproblemsarisedaily.Oldprob-

lemsreturntohaunt.BillGatesandPaulAllendid

noteventhinkofthepastastheyworkedupthe

firstoperatingsystemforthefirstpersonalcompu-

ter.Theysimplysurveyedthechallengeanddove

fortheanswer.

•Theyarecurious.LarryPageandSergeyBrincon-

tinuallyaskquestionsandprobetheanswerstosee

whethertheywork.

•Theyengagetheirimagination.Theythinkofwhat

maybepossible.Theythinkbig.Imaginationisa

gift,butitalsocanbecultivated.

•Theyarebold,sometimesinabrashway,some-

timesinagenteelway.Theypushandpokebeyond

whatothers,eventheirownmentors,havedone.

Theydon’thesitatewhentheyknowtheyareright.

Astrongpositiveattitudecarriesthemforward,far

forward.

both01.indd280

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Timeline

1955—EricEmersonSchmidtwasbornonApril27in

Washington,D.C.

1973—LawrenceEdwardPagewasbornonMarch26

AnnArbor,Michigan.

SergeyMikhailovichBrinwasbornonAugust21in

Moscow,Russia.

1979—TheBrinfamily,whichincludedyoungSergey,

hisparentsandgrandmother,

arrivedintheUnited

StatesonOctober25.

1995—LarryPageandSergeyBrinmetwhenBrin

guidedatourofSanFranciscoforprospectivenew

Stanfordgraduatestudents.

1996—PageandBrin

collaboratedonPage’sBackRub

searchengine.

ThefirstversionofGoogleisreleasedinAuguston

theStanfordWeb.Theaddress:google.stanford.edu.

Alittleoverayearlater,thesearchengineleft

both02.indd281

3/25/092:47:11PM

TIMELINE

Stanfordserversbecauseittookuptoomuch

bandwidth.

1997—Google.comwasregisteredasadomainname.

TheyounginventorstriedtosellGooglethrough

theventurecapitalfirmofKleinerPerkinsCaufield&

Byers(KPCB).Afterunsuccessfullypitchingthe

searchenginetoalllikelybuyers,theygaveupthe

ideaofselling.

1998—Googlewasgettingmorethan10,000queries

AndyBechtolsheim,afounderofSunMicrosystems,

watchedthedemoforGoogleandimmediatelywrote

a$100,000checktogetthecompanystarted.Google

becameanofficialcorporationonSeptember7.

Afewweeksafterincorporation,CraigSilverstein

becameGoogle’sfirstemployee.

PCmagazinerecognized

Googleasthesearch

engineofchoiceandoneoftheTop100WebSitesfor

1999—Afterseveralmonthsofoperatingoutofarented

bedroomandgarage,GoogleopeneditsfirstPaloAlto

office.Laterintheyear,the

companymovedto

BayshoreDriveinnearbyMountainView.

KleinerPerkinsCaufield&Byers,inpartnership

withSequoiaCapital,providedGooglewithaddi-

tionalventurecapitalof$25million.

both02.indd282

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Timeline283

BrinandPagefinallydroppedoutoftheStanford

graduatestudiesprogram.

OmidKordestani,thecompany’stwelfthemployee

anditsfirstnonengineer,joinedGoogleasheadof

globalsales.Kordestaniiscreditedwithcreatingthe

advertisingmodelthatledtoGoogle’searlyandcon-

tinuingfinancialglory.

CharlieAyers,whooncecookedfortheGrateful

Dead,joinedGoogleasitschef.

2000—Bymid-year,Googlesearcheshadswollento18

millionperday,andtheGoogleindexgrewtomore

than1billiondocuments,makingitthelargestsearch

engineintheworld.

Thefirsttenforeign-languageversionsofGoogle.

comwerereleased,availableinFrench,German,

Italian,Swedish,Finnish,Spanish,Portuguese,Dutch,

Norwegian,andDanish.Laterintheyear,Chinese,

Japanese,andKoreanlanguageswereadded.

Yahoo!selectedGoogleasitsdefaultsearchprovider.

GooglebegansellingAdWords,itskey-word-related

advertising.

2001—EricSchmidtjoinedGoogleasitsfirstchairman

andlaterintheyearbecamechiefexecutiveofficer.

GoogleacquiredDeja.com’sdiscussiongroupsite

UseNetandmergeditintoGoogleGroups.Thiswas

Google’sfirstacquisition.

both02.indd283

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TIMELINE

“Don’tbeevil”wasfirstheardinameetingand

laterbecameGoogle’sinformalethicalmotto.

2002—LarryPageapproachedhisalmamater,the

UniversityofMichigan,aboutscanningtheirlibrary

intoGoogle’scacheofpages.

Googleannounceditwouldprovidesearchservices

toAOL.com,Compuserve,andNetscape.

InspiredbytheSeptember11terroristattacks,

GoogleNewslaunchedwith4,000newssources.

Froogleshoppingserviceswentonline.Notmuchofa

success,itlaterwasrenamedGoogleProductSearch.

2003—TheAmericanDialectSocietyvotedgooglethe

mostusefulwordof2002.

ThecompanyacquiredPyraLabs/Blogger.

AdSensewentintoserviceforadvertisers.

RegistrationopenedforGoogle

’sfirstCodeJam

programmingcompetition.

2004—GooglemovedtoitsnewMountainViewcampus,

nicknamedGoogleplex.

Gmailbecameavailableasafreee-mailservice.

GoogleannounceditwouldgopubliconApril29.

GooglewentpubliconFriday,August13,withan

initialpublicofferingpriceof$85.

GooglequietlystarteddigitizingtheUniversityof

Michigan’slibraryinJuly.Laterintheyear,“Google

PrintforLibraries

”projectwasannounced.The

both02.indd284

3/25/092:47:12PM

Timeline285

projecthashadseveralname

changesandmostlately

iscalledthePrintLibraryProject.

ThesocialnetworkingsiteOrkutwentonline.

2005—Googleraisedanother$4.2billionthroughasec-

ondstockoffering.

ThecompanyacquiredFlickr,thepopularphoto-

sharingwebsite.

ItsfirstlobbyistofficeopenedinWashington,D.C.,

withastaffofone.

GoogleMaps,GoogleEarth,andiGooglewere

released.

Urchin(Webtrafficmetrics)waspurchased.

ThefirstSummerofCodetookplace,athree

month,$2millionprogramaimingtohelpcomputer

sciencestudentscontributetoopensource

development.

GoogleTalkwentonline,aWindowsapplication

enablingGmailuserstotalkonInstantMessagewith

afriendusingacomputermicrophoneandspeaker.

Theservicedoesnotrequireaphoneandisfree.

2006—TheU.S.JusticeDepartmentdemandedrecords

ofmillionsofsearch-engineusers.Googlesuccess-

fullyfendedoffthedemandincourt.

GooglewentliveinChina.

BypurchasingdMarcBroadcasting,aradioadver-

tisingcompany,Googleexpandedofflineactivity.

both02.indd285

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TIMELINE

Google(theverb)wasaddedtotheOxfordEnglish

Dictionary.

GooglepurchasedYouTube.

Dr.LarryBrilliantwashiredtobetheexecutive

directorofGoogle.org,thecompany’sphilanthropic

2007—FortunenamedGoogleasbestcompanyto

forintheUnitedStates.

Gmailbecameavailabletoeveryone.Previously,it

wasavailablebyinvitationonly.

StreetViewinGoogleMapswaslaunchedinfive

U.S.cities.Laterintheyear,

Skywasinitiatedinside

GoogleEarth,showinglayersforconstellationsand

virtualtoursofthegalaxies.

HotTrendsbeganlistingthecurrent100most

activequeries,servingasaglobalsubconsciousindi-

catingwhatthemassesare

thinkingaboutatalmost

anymoment.

Viacomfiled$1billionsuitagainstGoogleforair-

ingitsprogramsonYouTubewithoutpermissionor

The$3.2billionpurchaseofDoubleClicksparked

complaintsthatGooglewasbecomingtoodominant

intheadvertisingindustry.Soonaftertheacquisition,

Googlelaidoff300DoubleClickemployees.

SergeyBrinandAnneWojcickiweremarriedinthe

Bahamas.

both02.indd286

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Timeline287

ThefirstCNN/YouTubedebatestookplace,first

betweenDemocraticpresidentialcandidatesand

laterbetweenRepublicans.

GoogleformedtheOpenHandsetAlliancetowork

onitsAndroidproject.

LarryPageandLucindaSouthworthweremarried

onNeckerIslandintheCaribbean.

TheQueenofEnglandlaunchedTheRoyalChannel

onYouTube,thefirstmonarchtoestablishavideo

presencethisway.

2008—Yahoo!agreedtousesomeGoogleadsonits

searchengine,acontroversialagreementthatfell

underintensepublicandpoliticalscrutiny.

Thecompanybidinthe700MHzspectrumwireless

communicationauction.

GoogleHealthbecameavailable.

ForthefirsttimeeverontheInternet,Googlepro-

videdreal-timestockquotes.

GooglelaunchedChrome,itsfirstWebbrowser.

AsatellitewiththeGooglelogowaslaunchedfrom

VandenbergAirForceBaseinCalifornia.Thesatel-

litewillprovidehigh-resolutionphotosforGoogle’s

mappingservice.

both02.indd287

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Glossary

AjaxAcronymforAsynchronousJavaScriptandXML.

ThisisagroupofinterrelatedWebdevelopmenttools

usedforcreatinginteractive

orrichInternetapplica-

tions.WithAjax,Webprogramscanaccessdatawithout

interferingwiththedisplayandbehaviorofthepageon

thescreen.

AlgorithmProcedureorformulaforsolvingaproblem.

Artificialintelligence(AI)Thestudyanddesignofmachinesthatcanoperatelikethehumanmind.

AtomicphraseAphrasethatcanelicitthemostspecific,

single-idearesult.

BetaSoftwarethatisreleasedtothepubliconatrial

basistoworkoutanyimperfectionsbeforetheofficial

versionisreleased.Asoftwareprogramthatremainsin

development.

BlogShortforWeblog,orastringofjournalentriespostedonaWebpage.

bgloss.indd288

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Glossary289

BotShortfor

robot,aprogramthatautomatically

searchestheInternetlooking

forinformation.Google

usestwoversionsofsearchbots,theDeepbotand

Freshbot.Deepbottriestocrawleverylinkonthe

Webandindexasmanypagesaspossible,whereas

Freshbotseeksnewlyavailableandupdatedcontent

andwebsites.

CaptchasAnacronymforcompletelyautomatedpublic

Turingtesttotellcomputersandhumansapart.Wavy,

distortedtextusedasasecuritytesttothwartmassreg-

istrationofe-mailaccounts(forsendingspammail)and

otherWebabuses.

ChromeSoftwarelingofortoolbarsandtaskbarsthat

characterizemostcomputerprograms.Googlenamed

itsInternetbrowserChrome,aftertheseclassictools.

ClickstreamAdigitalpathshowingwhereanInternet

userhasbeen.Theclickofamouserepresentseach

steponthepath.

CloudcomputingTherearevariousdefinitionsforthis

concept.Basicallyitmeansthatdataisnotstoredor

processedonacomputer’sharddrive.Rather,theuser

logsontotheInternetforprocessingandstorage.

Folksonomy(tagging)Thepracticeandmethodofcollab-

orativelycreatingandmanagingitems,titles,names,or

thelike,toannotateandcategorizecontent.TheDewey

DecimalSystem,forexample,isafolksonomyofbooks

thatcanbefoundinalibrary.

bgloss.indd289

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GLOSSARY

GooglejuiceThenumberoflinksorreferencesone

websitehastoothersites.Asitewithalargenumberof

linkshasalotofGooglejuice.

GrokTounderstand.Thewordsuggestsanintimate

andexhaustiveknowledge.Inthesearchprocess,grok-

kingmeanstoanalyzethepoolofinformationtopro-

ducetheanswertoasearch.

MalwareMaliciousorharmfulsoftware,suchasviruses.

MashupAdigitalmediafilecontainingamixoftext,

audio,andanimation;itrecombinesandtweakseach

worktocreateaderivativework.Mashupmusicand

videos,forexample,areacollageofotherworks.

MetadataDataaboutdataofanynatureinanymedia.

Anitemofmetadatamaydescribeanindividualdatum,

orcontentitem,oracollectionofdatawith

multiple

contentitems.Clickstreamsareaformofmetadata.

Networkneutrality

AphilosophythatpreventsInternet

providersfrominterferingwithWebcontentbasedon

thesourceofownership.

OptimizersSearch-engineoptimizerspromisewebsite

managersthattheycangettheirsitehighplacementin

searchresultsallovertheWeb.Thisisdonebyclever

useofkeywordsandothertricksthatdistortresults.

PDAAcronymforpersonaldigitalassistant,suchasthe

multipurposeiPhoneorBlackberrymobiletelephone.

bgloss.indd290

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Glossary291

PDFCreatedbyAdobe,PortableDocumentFormatting

capturesformatting

informationfromavarietyofdesk-

toppublishingapplications,makingitpossibletosend

formatteddocumentsandallowingthemtoappearon

thecomputeruser

’smonitororprinterastheywere

meanttobe.

Petabyte(PB)Derivedfromthemathematical/scientific

prefixpeta-;aunitofinformationorcomputerstorage

equaltoonequadrillionbytes,or1,000terabytes.

PodcastDigitalmediafilesdistributedovertheInternet

forviewingonacomputerordownloadingandplay-

backonportablemediaplayers.

PokingIncomputing,thisreferstothestorageofa

valueinamemoryaddress,typicallytomodifythe

behaviorofaprogramortocheatatavideogame.

SEOSearch-engineoptimizationistheworkofimprovingthevolumeandqualityoftraffictoawebsitefrom

searchengines.Often,thesoonerasiteappearsinthe

searchresults,orthehighertherank,themoresearch-

erswillclickonthatsite.SEOalsotargetsdifferent

typesofsearch,suchasimagesearch,localsearch,and

industry-specificsearches.

ScaleAsin,“Itwasagoodidea,butitdidn’tscale.”InSiliconValley,thisusuallyreferstothequestionof

whetheraproductorserviceiseconomicallyviable.To

scalemeanstheideaorproductcansuccessfullymove

bgloss.indd291

3/25/092:40:23PM

GLOSSARY

toamuchlargermodel.Itoriginateswiththeconcept

economiesofscale.Thisistheideathattheefficiencyof

productionofgoodsincreasesasthenumberofgoods

beingproducedincreases.Thus,theaveragecostof

producingagoodwilldiminishaseachadditionalgood

isproduced,sincethefixedcostsaresharedoveran

increasingnumberofgoods.

SemanticWeb

TheextensionoftheWorldWideWeb

thatenablespeopletosharecontentbeyondthebound-

ariesofapplicationsand

websites.ThesemanticWebis

asimpleorganizationthatgivesWebuserseasyand

logicalaccesstoahugeamountofinformation.

SMSShortMessageService,ortextmessagingbetweenmobilephones.SMStextmessagingissaidtobethe

mostwidelyuseddataapplicationontheplanet,with

2.4billionusers,or74%ofallmobile-phonesubscrib-

ersexchangingtextmessagesontheirphones.

Socialnetworking

Websitesthatallowpeopletoshare

ideas,information,andimagesandtoformnetworks

withfriends,family,orotherlike-mindedindividuals.

StickyAnytrickordevicethatkeepsanInternetuser

ataspecificsite.

TaggingNaminganimage,file,orsomethingonthe

Internet.Itneedsanamebeforeyoucansearchforit.

SeeFolksonomy.

TuringtestAmodelusedtoprovewhetheramachinecan

beconsideredintelligent.Intheblindtest,aquestioner

bgloss.indd292

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Glossary293

isconnectedtotwosubjects,onehumanandonea

machine.Thequestionerdoesnotknowwhichiswhich,

butasksthesamequestionsofboth.Ifthemachinecan

convincethequestionerthatitishuman,itisconsidered

intelligent.In1990,HughLoebneroffereda

$100,000

prizetothemakerofthefirstcomputertopassthetest.

TyposquatterAnopportunisticmarketerwhotakesadvan-

tageofmisspelledwords,suchasaddinganextrarto

atrademarkwordwithdoublerr’s.Thetyposquatterthen

triestosellanother,sometimescompeting,product.For

example,acarrotfarmermayownthatnameanduseit

tomarketcarrots.Atyposquattermayusecarrrottosell

acompetingbrand,tosellapatentmedicinebasedon

carrots,orthelike.

URLUniformResourceLocator,orastringofcharactersusedtorepresentandidentifyapageofinforma-

tionontheWorldWideWeb.

ViralmarketingTheviral

phenomenonreferstomarketingoradvertisingtechniquesthatusesocialnetworksto

increasebrandawarenessorsalesmuchinthewaythat

diseasesorcomputervirusesspread.Thiscanbehand

tohand,mouthtomouth,orcomputertocomputervia

theInternet.Viralmarketingnudgespeopletovoluntar-

ilypassalongamarketingmessage.Themessagemay

taketheformofvideoclips,interactivegames,e-books,

intriguingimages,oreventextmessages.

Itisclaimedthatacustomertellsanaverageof3people

aboutaproductorserviceheorshelikes,and11people

bgloss.indd293

3/25/092:40:24PM

GLOSSARY

aboutaproductorservicethatheorshedidnotlike.Viral

marketingisbasedonthisnaturalhumanbehavior.

VirtualrealityAcomputersimulationofacreatedthree-

dimensionalworld,oftencompletewithaction,sound

effects,andotherenhancements.

VoIPVoice-over-Internet

protocolallowsthetransmissionofvoiceviatheInternetorotherpacket-switched

networks.VoIPissometimesusedtorefertotheactual

transmissionofvoiceratherthantheprotocolthat

makesitpossible.

WallsSocialnetworkingsite

Facebookfirstuseda

“wall”tologthescratchingsoffriends.Userssubse-

quentlyhavecreatedmoreadvancedversionsofthe

originalwall,suchastheapplicationSuperWall.

Web2.0Atermusedtodescribeanevolvinggenera-

tionofaparticipatoryWeb.Web2.0describestheprolif-

erationofinterconnectivityandsocialinteractionon

theWorldWideWeb.

WebcamAbbreviationofWebcamera,asmallcamera

thatsendsimagesthroughacomputerforaccessonthe

Internetorinstantmessaging.

WebfeedStandardizedprotocolsthatallowend-users

tomakeuseofasite’sdatainadifferentcontext.

WikisAcollectionofWebpagesthatenablesanyone

whoaccessesthemtocontributeormodifycontent,

usingasimplifiedcomputerlanguage.

bgloss.indd294

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INTRODUCTION

1.GarethMason,“HighResolutionGoogleSatelliteLaunched,

WorldofTech,September8,2008.

2.“GoogleRidesInternetAdWave,”AssociatedPress,October18,2007.

3.TimAlton,

“HaveYouExploredAlltheWondersofGoogle?

IndianapolisBusinessJournal,April2,2007,p.36.

4.MarkMalseed,“TheStoryofSergeyBrin:HowtheMoscow-Born

EntrepreneurCofoundedGoogle

—andChangedtheWaythe

WorldSearches,”Moment,February20,2007,p.38.

5.KenAuletta,“SearchandDestroy,”NewYorker,January14,2008.

6.NormanDouglas,SouthWind(London:PinoOrioli,1917).

7.“NASATakesGoogleonaJourneyintoSpace,”Googlewebsite,

www.Google.com/press,September28,2005.

8.PatrickThibodeau,“PentagonLookstoUPS,FedEx,OthersforIT

Advice,”ComputerWorld,July28,2008.

9.VanZanten,BorisVeldhuijzen,TheNextWeb.com,May12,2008.

10.DavidSmith,“TheObserver,”TheGuardian,August17,2008.

11.AmySchatz,“GoogleWillOfferServicesforBloggersatthe

Conventions,”WallStreetJournal,August19,2008.

12.AdiIgnatius,“InSearchoftheRealGoogle,”Time,February20,2006.

13.“Google,AppleScoresRiseinCustomerSatisfactionIndex,”EastBayBusinessTimes,August19,2006.

bnotes.indd295

3/25/092:42:28PM

THEGOOGLEGUYS

1.AdiIgnatius,“InSearchoftheRealGoogle,”Time,February20,2006.

EntrepreneurCofoundedGoogleandChangedtheWay

theWorld

Searches,”Moment,February20,2007,p.38.

3.VirginiaScott,

Google:CorporationsThatChangedtheWorld

(Westwood,CT:GreenwoodPublishingGroup,2008).

4.Ibid.

5.MarkMalseed,“TheStoryofSergeyBrin,”p.45.

6.Ibid.

7.MichaelBrin,UniversityofMarylandprofileofSergeyBrin.

9.Ibid.,p.38.

10.SergeyBrin’sblog,Too.blogspot.com.

11.SergeyBrin’spersonalblog.

12.UniversityofMarylandwebsite.

13.TheOprahWinfreyShow,November18,2008.

14.Author’sconversationwithWarrenBuffett,

December15,2008.

16.AdiIgnatius,“InSearchoftheRealGoogle.”

17.“GoogleFoundersHaveGrownUp,”Reuters,May9,2008.

19.Ibid.,p.38.

VerneKopytoff,

“LarryPage

’sConnections,

”SanFrancisco

Chronicle,December31,2000.

21.FromTheGoogleStory

byDavidA.ViseandMarkMalseed,

Publishing,adivisionofRandomHouse,Inc.

22.www.Montessori-ami.org.

23.Ibid.

24.Ibid.

25.www.eecs.umich.edu/eecs/alumni/Stories/Page.html.

26.Ibid.

27.BarbaraPalmer,“FollowingCreativePathsBoth‘Circuitousand

Serendipitous,’”StanfordReport,September28,2005.

bnotes.indd296

3/25/092:42:28PM

Notes297

29.VernKopytoff,“LarryPage’sConnections.”

30.ConsumerElectronicsShow(CES),LasVegas,Nevada,January6,

31.JimGoldman,“Google’s‘Oogle’ofaWedding,”www.cnbc.com,November15,2007.

32.“Moon2.0—NASAProjectsCouldBeSupportedbyaCommercial

TransportandDeliveryNetwork,”www.news.com.au,October

33.“GoogleFoundersHaveGrownUp.”

ofDell

35.Ibid.,p.29.

36.RandyKomisarofKleiner,Perkins,Caulfield&Byers,EndeavorEntrepreneurs’Summit,StanfordUniversityEntrepreneurship

Corner.

37.“JerryYangandDavidFilo,

”StanfordUniversitySchoolof

Engineeringbiography.

38.ShivanandKanavi,“MathematicianatHeart,”BusinessIndia,May24–June6,2004.

40.JohnBattelle,

TheSearch:HowGoogleandItsRivalsRewrote

theRulesofBusinessandTransformedOurCulture(NewYork:

PenguinGroup,2005),p.68.

41.Ibid.,p.90.

ADULTSUPERVISION

1.EricAuchard,“GoogleExecsPledgetoBeCoworkersforYears,”

ExtremeTech.com,January31,2008.

bnotes.indd297

3/25/092:42:29PM

2.TimO’Reilly,

“Web2.0Definition:TryingAgain,

”radar.oreilly

.com.archives,December10,2006.

3.AbbeyKlaassen,“TalkaboutaPowerLunch,

”AdvertisingAge,

October15,2007,p.52.

4.EricSchmidt,NASA50thAnniversaryLecture,January17,2008.

6.FirstonCNBC:CNBCtranscript:CNBC’sJim

Cramerinterviews

EricSchmidt,GoogleChairmanandCEO,onMadMoneywithJim

Cramer,November2,2008.

7.Ibid.

8.“EricSchmidt,Google’sCEO,QualifiesasMensch,”DenverPost,LettertotheEditorfromNancyLitwack-

Strong,Opinionsection,

November9,2008.

9.EricSchmidt,NASA50thAnniversaryLecture.

INTHEBEGINNING

2.GoogleCorporateInformation,www.google.com/corporate/history/

3.RobertColvile,“Google

atTen:HowDidOneCompanyBecomeSuch

aPartofOurLives,SoFast?”TheTelegraph,September4,2008.

ofDell

5.YuvalSa’ar,“TheIsraeliWomanbehindtheGoogleLogo,”www

.haaretz.com,February11,2008.

6.“AOLMayBecomeObjectofMicrosoft,Yahoo!,

Google’sDesires,”

CNNMoney.com,July21,2008.

7.MarissaMayer,Googleblog,September,12,2008,www.google.com.

8.“MicrosoftCEO:NoInterestinBuyingYahoo!,”AssociatedPress,Sydney,Australia,November7,2008.

9.JeffersonGraham,“TheHousethatHelpedBuildGoogle,”USA

Today,July4,2007.

bnotes.indd298

3/25/092:42:29PM

Notes299

10.“ScienceasInspiration,

”speechbyLarryPage,Entrepreneur

ThoughtLeaderSpeakers,YouTube,May1,2002.

11.http://www.wired.com/wired/archive/12.03,google_pr.html.

12.“AlumniWho’veMadeaDifference:LarryPage,”EECSAlmuni

Stories,www.eecs.umich.edu.

13.GoogleCorporateInformation,www.google.com/corporate/history/

14.Ibid.

15.ShivanandKanvi,“MathematicianatHeart,”BusinessIndia,May24–

June6,2004.

16.Interviewwithauthor,December2008.

17.Larrypageinterview,AcademyofAchievement,October28,2000,

www.achievement.org.

18.JuanCarlosPerez,

“Google,Microsoft,

FacebookandMySpace

TalkPlatforms,”IDGNewsService,November7,2008.

19.AuthorinterviewswithAssistantProfessorJoelWest,SanJose

StateUniversity,December1–9,2008.

GOOGLEBYANYOTHERNAME

“HowGoogleGotItsColorfulLogo,”www.wired.com/rint/techbiz/

startups/multimedia/2008/02/gallery.

2.YuvalSa’ar,“TheIsraeliWomanbehindtheGoogleLogo,”www

.haaretz.com,February11,

3.Ibid.

4.EmilyDugan,“GoogleOnceReviledComputerSuperpowersbut

DominationIsJustWhatItIsAchieving,

”TheIndependent,

September7,2008.

Conservativeswebsite,

“DavidCameron:SpeechtoGoogle

ZeitgeistConference,”October12,2007.

ACOMPANYISBORN

1.SergeyBrin,

Continuum(alumnimagazine),CollegeofComputer,

Mathematical&PhysicalSciences,UniversityofMaryland,2003.

2.ShivanandKanvi,“MathematicianatHeart,”BusinessIndia,May24–June6,2004.

bnotes.indd299

3/25/092:42:29PM

3.“JerryYangandDavidFilo,

”StanfordUniversitySchoolof

Engineeringbiography.

4.JeffersonGraham,“TheHousethatHelpedBuildGoogle,”USA

Today,July4,2007.

5.JohnBattelle,

TheSearch

:HowGoogleandItsRivalsRewrote

theRulesofBusinessand

TransformedOurCulture(NewYork:

PenguinGroup,2005),p.89.

6.“JohnDoerr,

”JohnBattelleinterview,

www:battellemedia.com,

November20,2007.

7.LauraRich,“HowJohn

Doerr,theOldProfessor,FinallyStruck

Google,”NewYorkTimes,May3,2004.

8.JanetDriscollMiller,“WhyCRMFails,”www.marketingpilgrim

.com,May2007.

9.Ibid.

10.“ChaosasaBusinessPlan,

”NationalPublicRadioMarket-

place,KaiRyssdalinterviewwithAdamLashinsky,September

26,2006.

11.“U.S.GoogleInc.toJointheWorld’sLayoffFad,

Leaving10,000

ContractWorkersatRisk,”TaiwanNews,November25,2008.

12.SaulHansell,“GoogleWantstoDominateMadisonAvenue,Too,”

NewYorkTimes,October30,2005.

13.JohnBatelle,

“TheWizardofAds:Google

’sOmidKordestani

ConjuredaFormulathatTookItsSalesto

$3Billion,

”Time,

October2005.

14.“AOLMayBecome

ObjectofMicrosoft,Yahoo!,Google’sDesires,”

CNNMoney.com,July21,2008.

15.KenAuletta,“SearchandDestroy,”TheNewYorker,January14,2008,p.30.

16.MattHartleyandGrantRobertson,“Google@10,”TheGlobeandMail,September6,2008.Reprinted

withpermissionofTheGlobeandMail.

17.JenniferWells,“GoogleConquerstheAdWorldOnePlain-Text

BlurbataTime,”TheGlobeandMail,November7,2008.ReprintedwithpermissionofTheGlobeandMail.

18.PeterWhoriskey,“AdvertisersSlowtoEmbrace

OnlineAdvertising,”

WashingtonPost,June29,2008.

bnotes.indd300

3/25/092:42:30PM

Notes301

19.MattHartleyandGrantRobertson,“Google@10,”TheGlobeandMail,

September6,2008.ReprintedwithpermissionofTheGlobeandMail.

20.RobertColville,“GoogleatTen:HowDidOneCompanyBecomeSuchaPartofOurLives,SoFast?”TheTelegraph,September4,2008.

21.JenniferWells,“GoogleConquerstheAdWorldOnePlain-Text

BlurbataTime,”TheGlobeandMail,November7,2008.ReprintedwithpermissionofTheGlobeandMail.

23.Ibid.

24.JohnBattelle,TheSearch,p.128.

25.KenBelson,“AttendingtotheNeedsoftheTooBusy,”NewYorkTimes,September30,2008.

26.Ibid.

GOINGPUBLIC

1.MichaelMalone,“Googlemania!”Wired,December2003.

2.Ibid.

3.JasonKottke,“PlayboyInterview:GoogleGuys,”Playboy,September24,2004.

4.Letterfromthefounders,

“AnOwner

’sManualforGoogle

Shareholders,”fromtheS1RegistrationStatementwiththe

SecuritiesandExchangeCommission.Availablefromseveral

sourcesincludingwww.Google.com.

5.MadMoney,CNBC,August12,2008.

7.Ibid.

8.LetterfromtheFounders,

“AnOwner

’sManualforGoogle

Shareholders,”fromtheS1

RegistrationStatementwiththe

SecuritiesandExchangeCommission,andfromothersources,

includingGoogle.com.

bnotes.indd301

3/25/092:42:30PM

9.Google’sS1RegistrationStatementtotheSEC,April29,2004.

10.AllanSloan,“GoingPublicMayBeGoogle

’sFirstBadMove,

Newsweek,May4,2004,p.

12.AlyceLomax,“Googleat10:TheAwkwardPhase,”TheMotley

Fool,Fool.com,September9,2008.

13.“GoogleCo-founderSaysPenny-PinchersFuelResults,”Reuters,October17,2008.

14.Ibid.

15.JessicaE.VascellaroandScottMorrison,“GoogleGearsDownfor

TougherTimes,”WallStreetJournal,December3,2008,p.A1.

16.LindaRosencrance,“GoogleGets70%ofU.S.Searches,”ComputerWorld,July20,2008.

17.AlyceLomax,“AMore

FrugalGoogle,”TheMotleyFool,Fool.com,December2008.

THEVISION

1.GoogleAnnualReport,LettertoShareholders,2004.

2.RobertHof,“Google’sMayer:StayingInnovativeinaDownturn,”

BusinessWeek,December

14,2008.

4.VirginiaScott,

Google:CorporationsThatChangedtheWorld

(Westwood,CT:GreenwoodPublishingGroup,2008).

5.KaiRysdalinterview,“AreYouFeelingLucky?GoogleIs,”NationalPublicRadioMarketplace,November19,2007.

6.EricSchmidtinconversationwithKenAuletta,SanFrancisco,

June11,2008.

7.KenAuletta,“SearchandDestroy,”TheNewYorker,

January14,2008,p.30.

8.“EnlightenmentMan,”TheEconomist,December4,2008.

9.KenAuletta,“SearchandDestroy,”p.30.

10.StephenShankland,

“Google’sTranslationCenter:Language

LessonsfortheGooglebot?”news.cnet.com/8301-1023.

bnotes.indd302

3/25/092:42:30PM

Notes303

11.AnickJesdanun,“AnUn-AmericanFeelAidsExpandingU.S.Web

Firms,”AssociatedPress,

NewYork,July27,2008.

13.AnickJesdanun,“AnUn-AmericanFeelAidsExpandingU.S.Web

Firms.”

16.JohnJurgensen,

“TheFamilyGuyGoesOnLine,

”WallStreet

JournalWeekendJournal,September5,2008,p.W1.

18.AdiIgnatius,“MeettheGoogleGuys,”Time,February20,2006.

19.www.Google.com/corporate.

20.Frequentlyquoted.

JasonKottke,

“PlayboyInterview:GoogleGuys,

”Playboy,

September24,2004.

22.“Web2.0Summit:EntrepreneurialSpiritTooStrongforGoogle

Alumni:TheMoneyWas

LarryandSergeyWere

Focused...ButaPanelofEx-GooglersRevealedWhyTheyHave

NowGoneOfftoBuildTheirOwnWeb2.0Fortunes,”Information

Week,October20,2007.

23.Ibid.

24.JasonKottke,“PlayboyInterview:GoogleGuys.”

25.AdamL.Penenberg,

“IsGoogleEvil?ItKnowsMorethanthe

NationalAgencyEverWill.AndDon’tAssumefora

MinutethatIt

CanKeepaSecret,

”MotherJones,November

–December2006,

26.Ibid.

27.Mysearchgurublog.com,November25,2008.

28.http://xooglers.blogspot.com,postedFebruary19,2007.

29.JohnBattelle,TheSearch,p.139.

June11,2008.

SethFinkelstein,

“JewWatch,Google,andSearchEngine

Optimization,”sethf.com/anticensorware/google/jew-watch.php.

32.www.google.com/explanation.html.

http://sethf.com/anticensorware/google/jew-watch.php.

bnotes.indd303

3/25/092:42:31PM

34.http:/google-watch.org.

35.EricSchmidtin

conversationwithKenAuletta,SanFrancisco,

June11,2008.

GOOGLECULTURE

1.Frequentlyquoted.

2.StephanieOlsen,“Newsmakers:Google

’sManBehindthe

Curtain,”CNETNews.com,May10,2004.

3.AdamLashinsky,“Back2BackChamps,

”Fortune,February4,

2008,p.70.

“AnOwner

’sManualforGoogle

Shareholders,”fromtheS1RegistrationStatementwiththe

SecuritiesandExchangeCommission,andfromothersources,

includingGoogle.com,2004.

June11,2008.

6.“Web2.0Summit:EntrepreneurialSpiritTooStrongforGoogle

Alumni:TheMoneyWasGreat

LarryandSergeyWere

Focused...ButaPanelofEx-GooglersRevealedWhyTheyHave

NowGoneOfftoBuildTheirOwnWeb2.0Fortunes,

InformationWeek,October20,2007.

8.Ibid.

9.JeremyCaplan,“Google’sChiefLooksAhead,”ManagingGrowth,October2,2006.

10.Ibid.

11.“Web2.0Summit:

EntrepreneurialSpiritTooStrongforGoogle

Alumni.”

12.Fromaninterviewbytheauthor,summer,2008,withemployee

whowishedtoremainanonymous.

13.ChrisAnderson,TheLongTail(NewYork:

Hyperion,2006).

“AnOwner

’sManualforGoogle

Shareholders.”

15.ElizabethMontalbano,“GrowingPainsforGoogle,”

ComputerWorld,October20,2008.

bnotes.indd304

3/25/092:42:31PM

Notes305

16.JessicaE.VascellaroandScottMorrison,“GoogleGearsDownfor

TougherTimes,”WallStreet

Journal,December3,2008.

17.SewellChan,“GoogleTransitExpandstoNewYork,

”http://

cityroom.blogs.nytimes.com/2008/09/23.

18.MattHartleyandGrantRobertson,“Google@10,”TheGlobeandMail,

September6,2008.

19.TriciaMcDermott,“DefiningGoogle,”CBSNews,January2,2005.

20.AdamLashinsky,“Back2BackChamps,”p.70.

21.Ibid.;VerneKopytoff,“LarryPage’sConnections,”SanFranciscoChronicle,December31,2000.

22.AdamLashinsky,“Back2BackChamps,”p.70.

23.http://features.blogs.fortune.cnn.com/2008/01/21/100-best-companies-

to-work-for/.

24.Ibid.

25.DanielDeBolt,“CityofGoogle:InComingYears,InternetGiant

CouldTripleItsAlreadyHugeAmountofOfficeSpace,”Mountain

ViewVoice,July20,2007.

EntrepreneurCofoundedGoogleandChangedtheWaytheWorld

Searches,”MomentMagazine,February2007,p.38.

27.VasanthSridharan,

“Google’sGinormousFreeFoodBudget:

$7,530perGoogler,

$72MillionaYear,

”SiliconAlleyInsiders,

http://www.alleyinsider.com,April23,2008.

28.DanFarber,“KaiFuLee:INeedtoFollowMyHeart,”www.blogs

.zdnet.com,August9,2005.

“AnOwner

’sManualforGoogle

Shareholders.”

30.JohnBatelle,

“TheWizardofAds:Google

’sOmidKordestani

ConjuredaFormulathatTookItsSalesto

$3Billion,

”Time,

October2005.

31.WendyMcLellan,

“GoogleTargetingTalentwithInnovative,

CreativeQualities,”CanwestNewsService,July28,2008.

32.Ibid.

33.GoogleLabsAptitudeTest,LinuxJournal,September1,2004.

34.LetterfromtheFounders,InitialPublicOfferingRegistration

StatementS1,2004.

35.QuentinHardy,“ClosetotheVest,”Forbes,July2,2007.

bnotes.indd305

3/25/092:42:31PM

36.DanFost,“KeepingItAllintheGoogleFamily,”NewYorkTimes,November13,2008.

37.StephenE.Arnold,“The

SummerofTransparency,”KMWorld,August31,2008,www.kmworld.com.

38.LettertoShareholders,GoogleS1PublicOfferingRegistration,2004.

39.DanielDeBolt,“CityofGoogle.”

40.“Google’sWallofSilence,”Opinionpage,MountainViewVoice,July

27,2007.

41.Ibid.

42.Ibid.

43.StephenE.Arnold,“TheSummerofTransparency.”

GOOGLEGROWSUP

1.KevinKelleher,

“Who’sAfraidofGoogle?

Everyone,

”Wired,

November30,2005.

3.AuthorinterviewswithAssistantProfessorJoelWest,SanJose

StateUniversity,December1–9,2008.

5.ChrisKraeuterandRachelRosmarin,“WhyGoogleWon’tGive

In,”Forbes,January24,2006.

6.Ibid.

7.Ibid.

8.JamesKirkupandNicoleMartin,“YouTubeAttackedbyMPsOver

SexandViolenceFootage,”TheTelegraph,July3,2008.

9.Googlecorporatewebsite,www.google.com.

10.DeclanMcCullagh,“ReportCriticizesGoogle’sPornFilters,”CNetNews,News.cnet.com,April10,2003.

11.MattHartleyandGrantRobertson,“Google@10,”

TheGlobeandMail,September6,2008.ReprintedwithpermissionofTheGlobeandMail.

12.AbbeyKlaassen,“TalkaboutaPowerLunch,

”AdvertisingAge,

October15,2007,p.52.

bnotes.indd306

3/25/092:42:31PM

Notes307

13.“GoogleUnderFirefor

‘Breathtaking’Hypocrisy,NewReport

ShowsJustHowMuchPersonalInformationIsAvailablethrough

GoogleStreetView,”

Marketwatch,July31,2008.

14.Ibid.

15.DrakeBennett,“StoppingGoogle,”BostonGlobe,June30,2008,www.Boston.com.

16.MichaelDinan,“PrivacyIssues,GovernmentProbeStirHard

FeelingsbetweenAT

&T,Google,

”TMCnet,

www.tmcnet.com,

August15,2008.

17.JuliaBonstein,MarcelRosenbach,andHilmarSchmundt,

“Data

MiningYoutoDeath,

”www.spiegel.de/international/germany,

18.Ibid.

19.Ibid.

20.JohnLetzing,“WebFirmsTreadCarefullyinBehaviorTracking,”

MarketWatch,September10,2008.

21.LetttertoShareholders,Google2005AnnualReport.

22.EmilieDugan,“GoogleOnceReviledComputerSuperpowersBut

DominationIsJustWhatItIsAchieving,

”TheIndependent,

September7,2008.

23.ZushaElinson,“BoringCoupleSuesGoogleforStreetView,”TheRecorder,April9,2008.

24.“RestatementofTorts,”AmericanLawInstitutelegal

guideline;CadeMetz,“Google:EvenintheDesert,PrivacyDoesNotExist,”

www.theregister.co.uk,July31,2008.

25.JuliaBonstein,MarcelRosenbach,andHilmarSchmundt,“Data

MiningYoutoDeath.”

26.YokoKubota,“Japanese

GroupAsksGoogletoStopMapService,”

Reuters,December19,2008.

27.ElinorMills,“GoogleBalancesPrivacy,Reach,”CNETNews,July14,2005.

June11,2008.

29.DrakeBennett,“StoppingGoogle,”BostonGlobe,June30,2008,www.Boston.com.

30.Ibid.

bnotes.indd307

3/25/092:42:32PM

31.EllenNakashima,“WebFirmsAcknowledgeTrackingBehavior

withoutConsent,”LosAngelesTimes,August12,2008.

32.ChrisWilliams,

“BerlusconiPlanstoUseG8Presidencyto

‘RegulatetheInternet,’”

TheRegister(UK),December3,2008.

34.AdamL.Penenberg,“IsGoogleEvil?ItKnowsMorethantheNationalAgencyEverWill.AndDon’tAssumeforaMinutethatItCanKeepa

Secret,”MotherJones,November–December2006,p.67.

36.ThomasClaburn,“GoogleToldtoRevealGmail‘Spybox’AccountInfoinCTOEspionageCase,”InformationWeek,October20,2008.

37.Ibid.

38.VintCerf,“TheInternetisforEveryone,”MemototheInternet

Society,April,2002.

39.JanineZacharia,“GoogleInc.NavigatesForeignLaws,”BloombergNews,June6,2008.

40.“GoogleCommittedto

StayinginChina,”PCMagazine,June9,2006.

41.DavidSmith,“GoogleDefiantOverCensorshipinChina,”

Observer,October29,2006.

42.“GoogleCommittedtoStayinginChina.”

43.Microsoftnewsrelease,October29,2008.

44.Ibid.

45.RoyBlountJr.,

“$125MillionSettlementin

AuthorsGuildv.

Google,”www.authorsguild.org/advocacy,October28,2008.

46.JonathanV.Last,

“GoogleandItsEnemies:TheMuch

-Hyped

ProjecttoDigitize32MillionBooksSoundsLikeaGoodIdea.Why

AreSoManyPeopleTakingShotsatIt?”WeeklyStandard,December10,

47.Ibid.

48.JeffersonGraham,“GoogletoSellBookstoBeReadOnlyOnline,”

USAToday,October29,208.

49.FromGoogle’swebsite,TheLibraryProject.

50.JonathanV.Last,“

GoogleandItsEnemies.”

51.KenAuletta,“SearchandDestroy.”

bnotes.indd308

3/25/092:42:32PM

Notes309

52.RobinJeweler,“TheGoogleBookSearchProject:IsOnlineIndexingaFairUse

UnderCopyrightLaw?”CongressionalResearchServices

(CRS)ReportsandIssueBriefs,December2005.

53.“MoreDigitizedBooksonInternetasGoogleSettlesLawsuit,

www.enews20.com,October

28,2008.

54.Ibid.

55.ReyhanHarmanci,“Google,BookTradeGroupsSettleLawsuits,”

SanFranciscoChronicle,October29,2008,p.C-1.

56.http://jobline.acc.com,“GoogleLegalOpportunities.”

57.EmilySteel,

“GoogleSearchAdsRileItsBigCustomers,

”Wall

StreetJournal,June4,2008.

58.Ibid.

59.“GoogleSaysViacomLawsuitaThreattoInternetUsers,”Reuters,May1,

60.KennethLi,“GoogleTakesaSwipeatViacom,”Reuters,July13,2007.

61.“MediasetSuesGoogle,YouTube;Seeks$780million,”Reuters,July30,2008.

62.Knol,Google’sinformationsource:

“GoogleOrderedtoReveal

BloggerIdentityinDefamationSuitinIndia.”

63.StevenEllis,“HighCourttoRuleonAgeDiscriminationSuit

AgainstGoogle,”MetropolitanNews-Enterprise,January31,2008.

64.JohnBattelle,The

Search:HowGoogleandItsRivalsRewrotetheRulesofBusinessandTransformedOurCulture(NewYork:PenguinGroup,2005),p.234.

65.ThePacketRat,“NetNeutralityDoesn’tGetGoogle’sFirst-ClassTreatment,”GovernmentComputerNews,July24,2006.

66.Ibid.

67.Corporatewebsite,www.google.com.

68.Ibid.

GOODCITIZENGOOGLE

1.FirstonCNBC:CNBCtranscript:CNBC’sJimCramerinterviews

EricSchmidt,GoogleChairmanandCEOonMadMoneywithJim

Cramer,Friday,November7,2008.

bnotes.indd309

3/25/092:42:32PM

JohnReidBlackwell,

“GoogleChief:InvestinEnergy

Independence:SchmidtUrgesFocusonWind,Solar,Other

RenewableSources,”RichmondTimes-Dispatch,October31,2008.

3.JoeTruini,“FeelingLucky:GoogletoSpendTensofMillionson

GreenEnergy,”WasteNews,December10,2007,p.1.

4.StephenShankland,“GoogleExecsCheeryaboutSiliconValley

Economy,”http://news.cnet.com/,September18,2008.

5.“GoogletoSpendMillionstoDevelopRenewableEnergyBusiness:

Google’sGoalIstoWorkwithOtherDevelopingTechnologiesthat

CanHarnessSolar,Geothermal,Wind,orOtherRenewable

EnergySources,”InformationWeek,

November27,2007.

6.JimOffner,

“AfterTheirTechEmpiresAreBuilt,

”E-Commerce

Times,November20,2008.

Economy.”

8.JoeTruini,“FeelingLucky,”p.1.

9.“GoogletoSpendMillionstoDevelopRenewableEnergy

Business.”

GOOGLE’SFUTURE

1.StephenE.Arnold,“The

SummerofTransparency,”KMWorld,www.kmworld.com,August31,2008.

2.ElizabethMotalbano,“GrowingPainsforGoogle,”ComputerWorld,October20,2008.

4.www.google.com/corporate/history.html.

5.ChrisTaylor,“ImaginingtheGoogleFuture:TopExpertsHelpUs

PlotFourScenariosthatShowWheretheCompany

’sGeniuses

MayBeLeadingIt...and

PerhapsAllofUs,”Business2.0,Time,January–February2006.

6.www.skynews.com,September5,2008.

June11,2008.

bnotes.indd310

3/25/092:42:33PM

Notes311

8.NicholasCarlson,“RIPGoogleGoodTimes:SlowingHiring,Deals

andTravel,”www.alleyinsider.com,October21,2008.

9.MichaelLiedtke,“GoogleStockSoarson26pctJump

Earnings,”APBusinessWriter,November14,2008.

10.Ibid.

11.PrabudevKonana,

“SensibleCapitalismNeeded,

”TheHindu,

December2,2008.

12.SaulHansell,“GoogleWantstoDominateMadisonAvenue,Too,”

NewYorkTimes,October30,2005.

13.LarryPage,speakingattheAmericanAssociationfortheAdvance-

mentofScience,San

Francisco,www.blogoscope.com,February

16,2007.

14.Ibid.

15.SaulHansell,“GoogleWantstoDominateMadisonAvenue,Too.”

16.http://www.youtube.com/user/IgnoranceIsntBliss

,October28,2000.

17.www.law.com/jsp/legaltechnology/pubArticleLT,August20,2007.

18.AndyGreenberg,“GoogleGrowsUp,”BusinessWeek,January11,2008.

19.Ibid.

20.JasoSzep,“Technology

ReshapesAmerica’sClassrooms,”Reuters,July7,2008.

21.GregoryM.Lamb,“WithNewWebServices,MoreCompaniesAre

Workinginthe

‘Cloud,’”www.features.csmonitor.com/innova-

tion,November11,2008.

22.“TechnologyWillContinuetoDrivetheWorkingLivesofYoung

People,”KalamazooGazette,www.kzgazette/2008/06/google,June4,2008.

23.Ibid.

24.JasoSzep,“TechnologyReshapesAmerica’sClassrooms.”

25.JeremyCaplan,“Google’sChiefLooksAhead,”Time,October2,2006.

26.GregoryM.Lamb,“WithNewWebServices,MoreCompaniesAre

Workinginthe‘Cloud.’”

27.TimO’Reilly,

“MyCommencementSpeechatSIMS,

”O’Reilly

Radar,http://radar.oreilly.com,May14,2006.

bnotes.indd311

3/25/092:42:33PM

28.GoogleInc.,FormS1RegistrationStatement,Securitiesand

ExchangeCommission,April29,2004,p.15.

30.LawrenceDonegan,“YouTubeLive:StarsofOnlineVideoTakea

RealWorldBow,”TheGuardian,November24,2008.

31.MichaelLiedtke,“YouTubeFlipsSwitchonNewSalesChannel,”

AssociatedPress,October6,2008.

32.JohnBattelleinterviewwithEricSchmidt,Web2.0Expo,April17,2007.

33.www.google.com.

34.BetsySchiffman,“EricSchmidt:GoogleMissionIsto‘ChangetheWorld,’”Wired.com,June11,2008.

35.FromtheOfficialGoogleBlog,

“TheFirstAndroid

-Powered

Phone,”Ackerman,September23,2008.

36.EliseAckerman,“LookOutI,Here’sG,”SanJoseMercuryNews,September24,2008.

37.JuanCarlosPerez,“GoogleReleasesAndroidSDK,”AustralianPC

World,Summer2008,p.16.

38.NewYorkTimesweblog,June23,2008.

39.LeslieCauley,“GoogleVaultsintoGlobalWirelessRingwithG1

Phone,”USAToday,September24,2008,p.3B.

40.MargueriteReardon,“FCCOpensFree‘WhiteSpace’Spectrum,”

CNETNews,News.cnet.com,November4,2008.

41.NateAnderson,“GoogleWhiteSpacePetition:13,000Signatures

andCounting,”Arstechnica.com/news,September2,2008.

42.WirelessCommunicationsAssociationConference,SanJose,

November6,2008.

43.AndrewLaVallee,“ASecondLookatCitiwideWi-Fi,”WallStreetJournal,”December8,2008.

44.LarryPage,Google’sWhiteSpaceBlog,andIDGNewsService,

November5,2008.

THEDOMINANTPOWER

INTHEINDUSTRY?

1.RobertHof,“IsGoogleTooPowerful?”BusinessWeek,April9,2007.

bnotes.indd312

3/25/092:42:33PM

Notes313

3.MattHartleyandGrantRobertson,“Google@10,”TheGlobeand

Mail,September6,2008.ReprintedwithpermissionofTheGlobeandMail.

4.BenOliver,“TheBattery-PoweredSupercarthat’sElectrifyingtheWorld,”www.dailymail.co.uk,

November11,2008.

5.RobertHof,“IsGoogleTooPowerful?”

6.EstherDyson,“GoogleMeetsItsMotto—forNow,”TaipaiTimes,

December22,2008,p.9.

7.KenAuletta,“TheSearchParty,”NewYorker,January14,2008.

8.RobertHof,“Google’sMayer:StayingInnovativeinaDownturn,”

BusinessWeek,December14,2008.

9.EstherDyson,“GoogleMeetsItsMotto—forNow.”

10.JoshReynolds,

“Google,eBayBattlingOver

PaymentService,

AssociatedPress,June15,2007.

11.Ibid.

12.Ibid.

13.MattHartleyandGrantRobertson,“Google@10.”

14.JeremyCaplan,“Google’sChiefLooksAhead,”Time,October2,2006.

15.ElinorMills,“MicrosoftWon’tMakeaNetscapeofUs,”CNET

News,May11,2006.

18.TerryMcCrann,

“RupertMurdoch

’sNewWorldOrder,

”Herald

Sun(Australia),November1,2008.

20.JeffreyHerron,“Schmidt:IndependentYahoo!BetterforCompeti-

tion,”AssociatedPress,June12,2008.

21.Ibid.

22.RichardWaters,

“WhyGoogleShouldHeedtheDoJ

’sWake

Call,”blogs.ft.com/techblog/2008,November5,2008.

23.“GoogleBailsOutofYahoo!AdDeal,

”AOLMoney

&Finance,

money.aol.com/news,November5,2008.

24.“MicrosoftCEO:NoInterestinBuyingYahoo!,”AssociatedPress,Sydney,Australia,November7,2008.

bnotes.indd313

3/25/092:42:34PM

25.DavidLyons,“Tough

Customers,”ForbesGlobal,April7,2008,p.69.

26.ClaytonHarrison,“Yahoo!’sYangFacesSaggingProfitAfterIcahnRow,”Bloomberg.com,July22,2008.

27.MichaelHelft,“GoogleEndsMicrosoft’sYahoo!Search,”NewYorkTimes,May6,2008.

JasonKottke,

“PlayboyInterview:GoogleGuys,

”Playboy,

September24,2004.

29.DavidA.ViseandMarkMalseed,TheGoogleStory,p.250.

30.DiscussionbetweenauthorandBillGates,BerkshireHathaway

annualmeeting,May2,2008.

31.AdamL.Penenberg,

“IsGoogleEvil?ItKnowsMorethanthe

NationalAgencyEverWill.AndDon’tAssumeforaMinutethat

ItCanKeepaSecret,”MotherJones,November–December2006,p.67.

CONCLUSION

2.SergeyBrin,Web2.0Conference,October9,2005.

3.MichaelLiedtke,“Google

SearchesforItsPlaceintheFuture,”

AssociatedPress,September14,2008.

4.RobertHof,

“IsGoogleTooPowerful?

”BusinessWeek,April9,

5.MattHartleyandGrantRobertson,“Google@10,”TheGlobeand

Mail,September6,2008.ReprintedwithpermissionofTheGlobeandMail.

6.ChrisO’Brien,

“InvincibleNoMore

?”SanJoseMercuryNews,

August24,2008,p.E1.

Economy,”http://news.cnet.com/,September18,2008.

8.HenryBlodget,“GoogleSucksLifeOutofOldMedia:CheckOut

the2007ShareShift,”AlleyInsider,www.alleyinsider.com,March14,2008.

9.Ibid.

10.MichaelLiedtke,“GoogleSearchesforItsPlaceintheFuture.”

bnotes.indd314

3/25/092:42:34PM

Permissions

Permissionhasbeengrantedbythefollowingorganiza-

tionsandindividualsforquotesappearinginthisbook:

KenAnletta

BusinessIndia

TheGlobeandMail

KMWorld

PlayboyMagazine

RandomHouse

SpiegelOnline

both03.indd315

3/26/099:36:40AM

—continuedfromfro

ntflap—

$19.95USA/$23.95CAN

Praisefor

InadditiontoexaminingGoogle’sbreakthrough

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whichhavetransformedonlineadvertising

Inmanyways,Googleistheprototypeofa

Google

andchangedthewaywelookatcorporate

responsibilityandemployeerelations—Lowe

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SPEAKS

5]]UZSsuccessfultwenty-first-centurycompany.Ituses

technologyinnewwaysto

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A>3/9A

addressescontroversiessurroundingGoogle,such

“It’snothardtoseethat

Googleisaphenomenalcompany....At

culturethatencouragescreativityamongits

employees;andtakesitsroleasacorporatecitizen

ascopyrightinfringement,antitrustconcerns,and

SecretsoftheWorld’sGreatestBillionaireEntrepreneurs,

personalprivacyandposesthequestionalmost

Geico,wepaytheseguysawholelotofmoneyforthisandthatkey

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grows,canitholdontoitsentrepreneurialspiritas

—WarrenBuffett

wellasitsinformalmotto,“Don’tdoevil”?

developingthelargestcorporatefoundationin

theUnitedStates.

FollowinginthefootstepsofWarrenBuffett

“Googlerocks.ItraisedmyperceivedIQbyabout20points.”

SpeaksandJackWelchSpeaks—whichcontaina

conversationalstylethatsuccessfullycapturesthe

Whatstartedoutasauniversityresearchproject

—WesBoyd

essenceofthesebusinessleaders—GoogleSpeaks

conductedbySergeyBrinandLarryPagehas

PresidentofMoveon.Org

revealstheamazingstorybehindoneofthemost

endeduprevolutionizingthe

worldwelivein.

GoogleSpeaksputstheseincredibleentrepreneurs

“Googleismyrapidresponseresearchassistant.It’stheSwissArmy

importantnewcompaniesofourtimebyexploring

thepeopleandphilosophiesthathavemadeita

inperspectiveandshowsyouhowtheirdriveand

knifeofinformationretrieval.”

globalphenomenoninlessthanfifteenyears.

determinationhaveallowedthemtocreateoneof

—LloydGrove

today’smostpowerfulcompanies.

ENTREPRENEURS

columnist,Portfolio.com

TSoftheWORLD’SGREA

Writtenbybestsellingauthor

JanetLowe,thisbook

offersanengaginglookathowGoogle’sfounders,

JANETLOWEistheauthorofthebestselling

“Who’safraidofGoogle?Everyone.”

SergeyBrinandLarryPage,transformedtheir

WarrenBuffettSpeaks,JackWelchSpeaks,and

,SERGEY

—Wiredmagazine

visionofabetterInternetsearchengineintoa

BillGatesSpeaks,allfromWiley.Herarticleshave

BRINandLARR

businesscolossuswithabout$16billioninannual

appearedinsuchpublicationsasNewsweek,the

“Writersofthepasthadabsinthe,whiskeyorheroin.IhaveGoogle.”

revenue.LowediscussesthevaluesthatdriveBrin

ChristianScienceMonitor,

theLosAngelesTimes,

TESTBI

—MichaelChabon

andPage—

—forexample,howtheybothlivefairly

andtheSanFranciscoChronicle.

authorofTheAmazingAdventuresofKavalierandClay

LLIONAIRE

modestlives,despiteeachhavinganetworth

inexcessof$15.9billion—

—anddetailshowthey

havecreatedaculturethatfostersfunwhile,at

thesametime,keepingGoogleattheforefrontof

technologythroughrelentlessR&Dinvestments

andimaginativepartnershipswithorganizations

suchasNASA.

8/<3B:=E3

—continuedonbackflap—

DocumentOutline

GoogleSpeaks:SecretsoftheWorld'sGreatestBillionaireEntrepreneurs,SergeyBrinandLarryPage

ContentsAcknowledgmentsIntroduction

TheGoogleGuysSERGEYBRINLARRYPAGETESLA’SSTORYTHEPOWEROFPARTNERSHIPNETWORKINGATITSBESTBURNINGMAN

AdultSupervision

THECOLLECTIVEWISDOMOFSILICONVALLEYHE’SBEENTHEROCK;THEY’VEBEENTHEROCKETSAMANOFINFLUENCECLIMBINGADIFFERENT

KINDOFMOUNTAIN

IntheBeginningTHEULTIMATESEARCHENGINENOTINVENTING,BUTIMPROVINGUPONLOOKAROUND

YOUFORINSPIRATIONHOWSEARCHWORKSPLATFORMPOWEROPENPLATFORM

GoogleByAnyOtherName

ABLESSEDBLUNDERFROMNOUN

TOVERBPLAYINGWITHTHENAMETHEGOOGLELOGOTHEGOOGLEDOODLEGOOGLEZEITGEIST

ACompanyIsBornYAHOO!

DREWTHEMAPTHEREQUISITEGARAGETHEVENTURECAPITALISTSTHEELUSIVEBUSINESSPLANINVESTINGINWILD

IDEASGOODIDEASPUTTOGOODUSEDEALINGWITHDARKMATTERAVERSIONTOADVERTISINGADVERTISINGTHATDELIVERSRESULTS

TWOWAYSTOADVERTISE:ADWORDSANDADSENSEEXTENDINGTHEGOOGLEREACHTHESCIENCEOFADVERTISINGGOOGLE

DIDN’TADVERTISEITSELF—ATFIRSTBIRTHOFTHEGOOGLEECONOMY

GoingPublic“WE’REDIFFERENT”THEDUTCHAUCTIONTHE

INTERVIEWTENYEARSLATER

TheVisionMAKEITUSEFULTHEMANYWAYSTOGOOGLEMAKEITBIGMAKEITFUNDON’TDOEVIL

MAKEITFREE

GoogleCultureNEWMANAGEMENTSTYLETENTHINGSGOOGLEHASFOUNDTOBETRUERIDINGTHELONGTAIL20PERCENTPROJECTS

PERPETUALBETAFABLEDWORKPLACEANALTERNATIVEPOINTOFVIEWGOOGLEPLEXGOOGLEINIRELANDTOPTENREASONSTOWORKAT

GOOGLETHEBATTLEFORBRAINPOWERGUARDINGTHESECRETS

GoogleGrowsUpCONFLICTSANDCONTROVERSYPRIVACYISSUEADVERTISING

PRODUCTSGMAILSTREETVIEWCANTHEYSNOOP—ANDWILLTHEYTELL?HELLO,HUMANRIGHTSTHEGREATCHINESEFIREWALL

PRINCIPLESOFFREEDOMCOPYRIGHTINFRINGEMENTTHEAUTHORS’REVOLTTHEGAME-CHANGINGSETTLEMENTLAWSUITSEVERYWHEREGOOGLE

GETSANAIRPLANEGOOGLEGETSASATELLITE

GoodCitizenGoogle

GOOGLE.ORG—THEPHILANTHROPICPARTGOOGLEANDTHEENVIRONMENT

RENEWABLEENERGYLESSTHANCOALGEOTHERMALPOWERENERGYFROMTHESEAENERGY-EFFICIENTGOOGLEPLEX

Google’sFutureARTIFICIAL

INTELLIGENCEONWARDTOWEB3.0CLOUDCOMPUTINGYOUTUBETHEGOOGLEPHONEWHITESPACES

TheDominantPowerintheIndustry?

GOOGLE,MICROSOFT,ANDTHEINTERNETCIVILWARTHEBATTLEOFYAHOO!GATESONGOOGLE

ConclusionLESSONSFROMLARRYANDSERGEY

THETRAITSOFTHOSEWHOCHANGETHEWORLD

TimelineGlossaryNotes

INTRODUCTIONTHEGOOGLEGUYSADULTSUPERVISION

INTHEBEGINNINGGOOGLEBYANYOTHERNAMEACOMPANYISBORNGOINGPUBLICTHEVISIONGOOGLECULTUREGOOGLEGROWSUP

GOODCITIZENGOOGLEGOOGLE’SFUTURETHEDOMINANTPOWERINTHEINDUSTRY?CONCLUSION

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