Google Story - a motivating excursion back in time

Google Story

The background of the success typically provides an interesting read. Moreover, if that background were told as a show filled with strong ambition, jealousy, struggles for power, rivalry, accusations, counterclaims, and a bit of humor, it would likely be very engaging. Additionally, this isn't merely a tale from a novel - it isn't even a reality show. It is the story of what transpired behind the scenes of what the author calls 'the most exciting business, media, and technology development ever. '

The Google Story - an inspiring journey into the past.

The book opens with a scene from 2003, where Google founders Larry Page and Sergey Brin are speaking to a high school in Israel. They explain how Google came to be.

Page and Brin were pursuing their PhDs at Stanford University. The concept for Google emerged when Page thought about downloading the entire internet to his computer to create a search engine. It was a bold idea. While he intended to finish this task in a week, he managed to accomplish only part of it even after a year. "So optimism is important," Page told his audience, "one must have a healthy disregard for the impossible. "

This optimism energized Page to move forward with his plan. He continued to download the internet to his device, with Brin assisting in organizing and understanding the data. According to them, it took huge efforts, many long nights, and significant work during holidays.

After this brief setup - much like the beginning, the narrative goes back to the start - when Page met Brin for the first time.

Both Page and Brin were PhD students at Stanford University, and they had a lot in common. They both came from families that highly valued education and academic success. Their fathers were professors, and their mothers worked in fields related to computers and technology. Computers, math, and academic discussions were not just part of their heritage but also woven into their daily lives. It was only natural that they connected well and began collaborating.

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They also enjoyed very conducive conditions for growth, experimentation, and innovation. Stanford is renowned for launching several successful tech projects, such as HP and Sun (which refers to the Stanford University Network). The people at Stanford are firm in their belief that sometimes creating a business around technological advancements can have far more significant results than merely writing an academic paper about it.

Moreover, while the two were collaborating, a major transformation in IT was taking place. Companies like Netscape were making significant progress with a vast number of subscribers like never before, and the Internet was being promoted as the next big revolutionary phenomenon. Consequently, venture capital was heavily directed towards funding technology startups. These conditions created a fertile ground for research and innovation on the Internet, and Page and Brin are convinced that effective research is what Internet users desperately seek.

At that point in time, the common search engines offered services that were far from satisfactory. Many existed simultaneously, including names like Lycus, Webcrawler, Excite, and a few others. All of them fell short. They simply returned an overwhelming number of results that were irrelevant to the user.

Meanwhile, another group at Stanford was operating a company they named ‘Yahoo’. They developed a superior search algorithm by creating an organized directory of web pages. Additionally, a new search engine emerged called Altavista. Its search algorithm, similar to other search engines, relied on the frequency of a keyword appearing on a webpage, but it provided results based on the now-popular concept of web links. A link essentially serves as a pointer to another webpage.

Through the use of links, Brin and Page began to re-evaluate everything from a new perspective.

Hailing from families that valued academic research, Page and Brin viewed links as comparable to citations in scholarly works. In academia, a paper was considered strong if it included references. The greater the number of references, the better the paper was regarded. Moreover, not all references held the same weight. Citations from reputable sources enhanced the credibility of the paper.

Using this analogy, the duo developed their own search algorithm known as PageRank. This algorithm relies, among other things, on the number of links directed at a webpage. The more links a page receives, the higher its rank. Additionally, links from more renowned sites like Yahoo carry more significance than those from less recognized websites.

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Initially, the creators at Google labeled their web search tool as 'reinforcement' due to its function of guiding users back to webpages. However, they later decided a different name was necessary. Given its capability to handle vast amounts of data, they opted for the name 'Google'. The word 'Gogol' represents an extremely large number - one with 100 zeros behind it. Interestingly, 'Google' is actually a misspelling of 'Gogol', which many people are unaware of.

Google was originally developed within Stanford University. From the beginning, the homepage was kept neat and straightforward, avoiding any extravagant animations. It quickly became popular on the Stanford Network.

As their database expanded, Brin and Page realized they needed additional equipment. Facing financial constraints, they assembled components at low prices by purchasing cheap parts and building the technology themselves. They also pursued any unused machines they could acquire, striving to minimize their hardware expenses.

At first, the duo sought to sell Google to major web companies like Yahoo and AltaVista. However, both companies hesitated to accept Google because, among other reasons, they did not see search as a vital part of the web experience.

In the early days, the creators were unsure about their business model. They didn't know how Google would generate revenue. Their motto was 'Don't be evil'. They thought advertisements on web pages were wrong and sought to avoid placing ads on their own pages. They hoped that eventually, other sites would want to use their search engine, allowing them to earn money through those partnerships. Their marketing strategy relied solely on word-of-mouth, and they never intended to advertise.

As Google's database continued to grow, they began to acquire more equipment and hire additional staff. Initially, Google received a one-million-dollar investment from a private investor named Andy Bechtolsheim. However, they eventually depleted those funds and needed more capital.

They were reluctant to go public and raise funds like many other companies did because they did not want to disclose their data and aimed to maintain complete control over their business. Consequently, they believed their best option was to approach capital owners. The two were confident that they could attract venture capital firms while still retaining control of their company.

They reached out to two prominent investment firms, Sequoia and Kleiner Perkins. Both firms showed interest in the concept and were willing to invest in Google. Nevertheless, because they preferred not to relinquish control, the Google founders requested that the two firms invest in exchange for equity in Google.

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On Wall Street, two major investment firms have declined to take a shared interest in a startup run by a determined young couple. However, due to the natural appeal and practicality of their idea, and with some help from their connections, the duo managed a remarkable feat with Google. They secured $25 million in funding from each of the two companies, maintaining complete control over Google. The only condition set by the investors was to bring in a seasoned industry expert to oversee their operations. The Google team accepted, hoping to postpone this until as late as possible.

As Google progressed, many new features emerged. The now-famous Google Doodle - an image displayed on the Google homepage to mark a significant event or honor an individual - started as a message to employees that Brin and Page were away. When they attended an event called Burning Man, they left an image of Burning Man on the homepage to let staff know of their absence. They later experimented with replacing the letters in Google with Halloween pumpkins to signify a Halloween celebration. This was a hit with users. Since then, the logo frequently includes a doodle to represent or celebrate important events, milestones, or individuals.

Google began to recruit staff for specific roles. One employee was focused on creating doodles, while another worked on enhancing the user experience. Additionally, they hired Dr. Jim Reese from Harvard University to manage operations. His role was to ensure that Google’s growing hardware needs were consistently met. As Google saved money by purchasing cheap computers and assembling them on their own, it was critical to maintain, monitor, and manage them properly. To ensure reliability, Dr. Reeves distributed data across multiple computers, managed them from a centralized system, and employed redundancy to protect the company against system failures. By reducing hardware costs and using free Linux operating systems instead of expensive ones like Windows, Google gained a significant cost advantage.

Google's popularity grew further. It earned the support and respect of Danny Sullivan, the editor-in-chief of an influential newsletter focused on Internet search. The company built a very loyal user base that provided feedback on even the smallest updates to the website. However, it still had not found a way to generate revenue.

At that time, Brien took notice of a company named Overture. This organization provided a list of search results that accompanied queries from Yahoo and AOL, among others. The team at Google was interested in showing ads tied to search results, rather than flashy and distracting banner ads. However, there was one practice of Overture that they strongly opposed— the consistent promotion that a business could pay a certain amount of money to guarantee placement among the ads. This went completely against their motto of "Don't be evil. 

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They opted to behave like a solitary hero. They have developed a strategy for advertising their own search function. True to their belief, they have made it clear to differentiate between valid search results and advertisements. Advertisements, just like search outcomes, will also be ranked. The ranking of ads will be based on the money spent and the number of clicks received. Therefore, ads that are popular will be more visible.

The pricing for Google Ads is determined through an ongoing auction process. Auctions are held for each keyword. A term such as 'investment advice' will be much more expensive than a term like 'pet food'. Companies have begun to assign staff specifically to manage Google auctions. There are many details involved. For example, 'digital cameras' will sell at a higher rate than 'digital camera', because a person searching for 'digital cameras' is more likely to make a purchase.

Google's advertising method has faced its share of challenges. There was an instance when an insurance company named Gekko took legal action against Google because it had allowed other businesses to bid on its name. A user searching for 'gekko' would see results from all the insurance companies that successfully bid on that term. Gekko argued that Google did not have the right to enable rivals to take advantage of searches using its name. Google defended itself by stating that Gekko’s understanding of online consumer behavior was incorrect. Learning about the term 'gekko' does not necessarily mean someone is only searching for the company website. Additionally, Google was not the actual publisher of the ads and had trademark protection mechanisms in place. Advertisements are not allowed to include trademarked names in their titles or content. Ultimately, Google won the case.

He also stated that Google’s labeling of the advertising section as 'sponsored links' confuses many users. Many users mistake advertisements for actual search results and click on them without realizing they are ads. The ethics surrounding this lack of clear distinction is often questioned.

With the business model on the right track, innovation and creative ideas flourished within Google’s expanding division, known as Google. One employee invented a way to retrieve a person's phone number if their name and postal code were input. Another developed the idea of automatically correcting spelling mistakes. For example, if someone misspelled a celebrity's name, Google would automatically fix it and show results for the corrected name. If a subtler error occurs, Google presents a "Do you mean. ?" prompt at the top of the page.

Google also launched Google Image Search, which was again groundbreaking. Millions of images are stored in a Google database and can be accessed with just a click of a mouse.

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The team at Google created a culture and system that encouraged employees to want to stay at the company all the time. They invested freely in technology, just like they did in building an ideal work environment. There were complimentary meals, endless snacks, games for kids, roller hockey, bike races, and much more. Even the shuttle buses had Wi-Fi so that employees could work effectively while commuting.

Additionally, Google supported external events. The dotcom crash in 2000 left many talented software engineers jobless, which allowed Google to access a wide range of skills. Around the same period, Microsoft was involved in legal troubles concerning its anti-competitive practices. This situation negatively affected Microsoft's reputation. With the motto "don't be evil," Google quickly became the top choice for software engineers. Many sought to build careers at Google.

Google also actively supported and promoted creativity within the company. Employees were allowed to spend 20% of their time on projects that interested them, without needing to worry about profitability or practicality. They could focus on whatever captured their attention. Ideas were often shared on bulletin boards and during lunch. As these ideas developed, they grew larger and more detailed. Google provided the necessary resources to implement these innovations. From this atmosphere emerged several concepts. One idea was the Google News Reader, which offered users various sources of information to help them analyze and understand the news better. This eventually led to the creation of Google News. Interestingly, unlike Google search results, the items in Google News are displayed closely together. This format aims to give users as much news as possible. The ranking depends not only on relevance but also on the source. Another innovation was Froogle, which later became Google Product Search, helping users find retail products.

Google quickly became a verb in several languages, including English, German, and Japanese. There has been a lot of discussion related to Google. Given the concern about individuals being followed online, particularly through Google search, new issues arose. Despite the company’s attempts to regulate this, some advertisements appeared on inappropriate sites. In academia, students using Google instead of more traditional databases was viewed as both a way to easily access broader information and as encouragement for laziness.

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Despite its widespread recognition, Google does not spend much on advertising. The promotion mainly occurred through word of mouth. The company has maintained a tidy and advertisement-free homepage, which has led to a significant loss in potential revenue. Avoid complicated homepage designs that could slow down the retrieval of search results. The focus is on delivering quick answers for users, contrasting with other sites that aimed to keep visitors engaged for longer periods. There’s no reason to register to use Google’s search, as users aren’t locked in. By providing an exceptional service that prioritizes user satisfaction, Google has reduced the need for advertising. The only marketing I did was selling hats and shirts featuring the Google logo.

Google launched a new initiative aimed at attracting users instead of waiting for them to find the search engine on their own. Through this initiative, any website can sign up to include Google search within its pages. Known as the affiliate program, participating sites agreed to pay three cents for each search they drove to Google. Naturally, Google benefits from the revenue generated from advertising.

Since it received funding from venture capital firms, the Google team has faced growing pressure to hire a CEO to handle the company’s business operations. Google surpassed the threshold that required it to become a publicly traded company, and private equity firms sought an experienced business leader to be the public face of Google before going public. Several candidates were suggested to Brin and Page by investors, but none met the expectations of the Google team.

As time was running out and the pressure increased, Eric Schmidt, the CEO of the software company Novell, visited the Googleplex to meet with Brin and Page. He only agreed to the meeting due to the urging of senior members from the investment firms, understanding how vital those connections could be. He was not particularly interested in the meeting itself. Likewise, the Google team didn’t have high hopes for the interaction, anticipating yet another conventional and unremarkable candidate.

When Schmidt arrived, his resume was displayed on the wall, and his strategies at Novell were openly criticized. He passionately defended his ideas, leading to a spirited debate that lasted for quite some time. Afterward, Schmidt realized it had been a long time since he engaged in such an intellectual discussion. Brin and Page also found Schmidt refreshing compared to the other candidates they had encountered. The investors recognized that Schmidt could skillfully establish the business structure and direction for the company while still preserving the independence that Brin and Page highly valued.

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Before long, Eric Schmidt was introduced as the CEO of Google. He utilized all his expertise and displayed greater maturity. He understood when to push forward, when to agree, when to hold back, and when to fight. He still allowed employees at Google considerable freedom. It is known that Google has fostered a culture of innovation that is truly engaging. His main objective was to build the business and management framework based on the strategy and culture that Brin and Page had carefully crafted.

Of course, there were disagreements between Schmidt and the Google team. It took a lot of effort from Schmidt to convince Brin and Page that the company’s financial system, which relied on free software, needed an overhaul. Schmidt wanted to purchase licensed Oracle software, believing it was essential, given Google’s size and rapid growth. However, Brin and Page didn’t see the point in spending money on Oracle when free software was available.

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There were also occasions where Brin and Page got everything they wanted. At one point, there was an intense bidding competition between Google and AOL for their search business. Ultimately, Google prevailed by offering AOL guarantees totaling millions of dollars. Schmidt was concerned about this, as the company’s cash reserve was quickly dwindling. Nevertheless, Brin and Page pursued the deal, firmly believing that collaborating with a company like AOL in research and search-related advertising was worth the risk. In the end, it turned out to be a wise choice.

In addition to this, Google also secured an agreement with Yahoo to provide search results. It also entered into a $100 million contract with AskJeeves. com, a competitor, to supply search-based advertising. This demonstrated growth and confidence from Google in striking deals with rivals.

In April 2004, Google promised to launch an email service that it claimed would be significantly better than current options. Brin and Page recognized that with so many email providers already available, the new email service would have to be far superior to succeed. They believed that Gmail, or Google Mail, would be vastly exceptional.

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Notable features of Google included the ease of recovery through its search, similar to accessing messages, along with 1 GB of free storage, an amount typically seen with current email services, and a unique way of displaying a series of emails, resembling a conversation. Initially, Google was offered to a select group of 1000 testers. It would later be accessible to a limited audience based on invitations. This exclusivity made Google highly desirable.

However, just as things seemed to be going well, Google faced challenges. The company wanted to incorporate ads within Gmail similar to those in its search engine. These advertisements would be tailored based on the email content. This announcement sparked outcry from privacy advocates. Legal threats emerged, and calls to shut down Gmail were made. The main concern was over email scanning, with fears that reading every message breached individual privacy. There were also worries that the vast storage space could lead to prolonged message retention issues.

Although Google had an excellent reputation, this incident initially tarnished it. The timing was unfortunate, as the company was preparing for a public offering. Brin and Page, who expected a warm reception for what they believed was a superior product, were taken aback. They hoped the protests would soon pass and that the situation would stabilize. They explained that the email scanning was automated and that they did not access the actual content. They noted that all email providers filter messages to identify similar content and detect viruses.

As time went on and more users began to adopt Gmail, they found the service very rewarding. The negative publicity gradually faded, and Gmail ultimately became a significant success.

When the time arrived for Google to go public, Brin and Page desired to handle the process on their terms. Typically, an IPO in the United States involves major investment banks. These institutions promote the offering through a so-called "road show," assist in setting the share price, and guarantee a minimum amount for the issuing company. However, conflicts often arise between the goals of the investment bank and those of the issuing company. The investment bank prefers the stock to be set low initially so that it can rise in value, benefiting the investors. In contrast, the company aims for the price to be as high as possible to maximize funding.

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Google was not reliant on speculation banks for significant decisions. They were prepared to cover about half of the costs that speculation banks typically demanded, and they needed to set the conditions for the IPO. They believed the IPO should be fair - it shouldn't be open to just anyone. The minimum number of shares offered was only five. The valuation was to be based on an auction, similar to how Google advertisements work. They thought this process presented biased information to only a select few. To ensure fairness, they made all essential information available online for everyone to access.

Additionally, to maintain control, they issued two types of stock - Class A and Class B. Class A shares were available to regular investors, each granting one vote. Class B shares were for themselves, granting ten votes each, allowing them total control.

As the date for the stock issue approached, concerns began to arise about Google's stock. The price range of $110 to $135, about thirty times the earnings per share, started to seem too high. It was anticipated that after the stock issue, Google employees might exercise their stock options and leave the company. To complicate matters, Playboy magazine published a very informal and relaxed interview with Brin and Page. Although the interview had taken place earlier, it was intended to take advantage of the buzz around Google. Aside from being a violation of SEC regulations, it also raised doubts in the minds of potential investors about the risky leaders at the top of Google.

Moreover, Google’s shareholders, who had a lot at stake, decided to intervene. It was agreed that the Playboy article would be included as an addendum to Google’s registration documents to prevent violating the quiet period. Additionally, investors decided to buy up all the Google shares they wanted to sell - a signal that they expected the share price to rise. Ultimately, the Google IPO was completed, and the stock debuted at 85 dollars per share. It is currently trading at 530 dollars per share.

Google continued to grow stronger. AOL nearly snatched the European market from Yahoo, securing million-dollar guarantees after Yahoo was close to finalizing a deal with AOL. Sergey Brin confirmed this. Brin's responsibilities mainly revolved around making deals, cutting costs, and handling issues related to culture and motivation. Conversely, Larry Page was more involved in hands-on work. He also supervised staff recruitment and identified innovative projects with the highest potential. For his part, CEO Eric Schmidt managed operations. He emphasized that projects were progressing on schedule and that deadlines were being met. He also handled finances, accounting, and various systems.

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Progress continued to emerge. Google suggested thoughts on what to search for. Google Desktop provided comprehensive answers for your computer needs. Google video search and Google satellite maps were introduced. Google Scholar was launched to assist in locating scholarly articles. Recently, the list continued to grow.

Amidst all this, Google embarked on a bold mission to digitize every book from major bookstores and make them available to users. Starting with the University of Michigan, a few libraries were selected. The books were scanned using technology that was gentle on them and did not cause any damage. After scanning, these texts will be offered in a format that prevents duplication. For books under copyright, users might only be able to view selected pages.

To gain the approval of publishers, Google came up with an appealing proposal. It would cover the costs of scanning and indexing books in exchange for the right to showcase them in search results. They would then be displayed in a non-reproducible format. Additionally, the service would provide direct links to bookstores where readers could purchase the book. This way, Google was essentially offering users a glimpse of the book's content while encouraging them to buy it. Eventually, support from publishers was achieved. This initiative became known as Google Books.

In the future, we may see Google utilizing its vast computing power to aid research in genetics. Currently, Google has uploaded a map of the human genome and collaborates with researchers to explore further possibilities. A multitude of genes, alongside significant biological and scientific information, creates a combination that only Google’s data processing capacity and storage can handle.

The book is exceptionally well-written. From start to finish, the author makes sure the reader remains engaged and impressed. He achieves this without any exaggeration. By logically organizing events, occasionally shifting focus to supporting characters, and clearly describing the rise of Google, the author gives readers every reason to keep reading. The portrayals of Larry Page and Sergey Brin are beautifully crafted. The narrative flows like a novel, ensuring the reader never feels bored. The author also deserves recognition for his fairness. While he generously praises Google as a whole and its leaders in particular, he occasionally critiques them, such as during an inappropriate interview for Playboy.

In some instances, the author provides such intricate details that it can challenge the reader's comprehension, as seen in the thorough depiction of the Burning Man Festival. Moreover, certain individuals, such as Charlie Ayers, the chef, receive excessive attention. While it is true that the chef's time at Google led to the creation of a unique food culture and influenced employees, dedicating an entire chapter to him and including one of his recipes feels unnecessary and unjustified kora live.

In summary, Google Story offers a journey that takes you back to the most significant success of the internet so far. This journey will capture your attention, and it is one you are likely to enjoy.