Google_Story.ppt

7/28/2019 Google_Story.ppt

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Presented by,Rinali Daftary (107)

Amey Dalvi (109)

Mihir Desai (112)

Sneha Mehta (130)

Jigar satra (138)

Ami Thakkar (151)


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The Short Story


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YEAR 1998 1999 2000 2001 2002 2003 2004 2005

Documents &

settings

24M 1.3B 3B 4B 6B 8B

Employees 8 39 284 682 1628 3021 5680

Revenue($M) 0.2 19.1 86.4 439 1465 3189 6139

Income($M) -6.7 -14.7 7 99 105 399 1465

A History of Growth


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How Did It Begin ?

Garcia-Molina, Brins adviser, recalls how it all started. Page came intohis office one day in 1995 to show him a neat trick he had discovered.The AltaVista search engine could show what other sites linked to them

but did not exploit this link information; Page suggested it would be agood way to rank sites.

The PageRank system, invented by LarryPage (and named after him) judges a sites

importance by analyzing outside links to it.


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How Did It Begin ?

Meanwhile Brin worked on a research project within thedatabase group in associative data mining. Brin workedon ways to find specific word combinations that oftenoccurred together on the Internet. Later, Page combined

his method of analyzing back links pointing to a givenwebsite with Brins web crawler, and their combinedresearch movedUnder the Digital Library umbrella.


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Google.Stanford.edu

Google soon overgrew the bounds of their labin 1996, Brin and Page disclosed the technology toStanford OTL which contacted several internetcompaniesand companies were interestedeven one

company bid a significant amount of money, but none ofthe offers equaled Googles potential For the next twoyears, while continually completing an increasing numberof searches, the technology incubated in the OTL portfolio

of technologies.


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The Pagerank Patent

Interestingly enough, Derwent gives- 3 patent filings with Pages name (2 from Stanford and 1 Google)- 6 patent filings with Brins name (all Google)

- Pages key patents as US only


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A Very Long Incubation

In 1997, Google has become the De Facto search engine for the

Stanford community. Pages advisor funds $10k for new computers but

Google quickly reach limits in resources.

In March 98, Page and Brin try to sell the engine to Alta Vista for $1M

but DEC (Altavistas mother company) was not very open to outside

technology

Later, with the help of Stanford professors and OTL, they contact Excite

and other search engines without success.

Pages advisor, Terry Winograd, contacts VCs but they are not interested

by search engines anymore. Brin and Page, who have a skeptical view

of authority are frustrated but more determined.

Yahoos founder, D. Filo then advised them to take a leave of absence

from their PhD and to start their own

business


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OTLs Valorization Effort

"Larry and I mapped out a strategy to talk to existing search-enginecompanies to see if there was any interest in licensing this," said Luis

Mejia , an OTL senior licensing officer. Steve Kirsch, CEO of search engine Infoseek, met

with them a couple of times and made a verbal offer. Mejia declined to name the

amount, but said: "It wasn't sufficient for us to feel he was really committed to it." (Kirsch

told the Wall Street Journal that he had offered $250,000.)

Yahoo declined to meet, Mejia recalled. He contacted venture capitalist Vinod

Khosla, who set up a meeting at his firm, Kleiner Perkins, with Excite, one of its

portfolio companies.

"There was a lot of disbelief in what the capabilities of the page-rank

search algorithm were," Mejia said. "They weren't convinced it was worthmuch. They decided they weren't interested in licensing it.''

Mejia doesn't recall being particularly thrilled about Google's prospects.


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A Very Long Incubation

LARRY PAGE MAY 2002

Tip 1: it is very important to findgreat people you are compatiblewith.

Tip 2: There is a benefit from being

real experts. Experience pays off.

Tip 3: Have a healthy disregard forthe impossible. Stretch your goals.

Tip 4: It is OK to solve a hardproblem. Solving hard problems iswhere you will get the big leverage


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From a Garage

We had to buy a Terabyte (which costs about $15,000) and put it on our credit cards

In August 1998, thanks to David Cheriton, a Stanford professor, Pageand Brin meet Andy Bechtolsheim, founder of Sun Microsystems andworking at Cisco.

After an hour, he makes a $100,000 check to Google Inc. withoutknowing the company does not exist yet.

In October 1998, Page and Brin convinced a friend to rent a Garageand spare room for $1700/month. They quickly added 8 phone lines,a cable modem and a DSL line. After two months, they were 8 people

and they moved again in February 1999.

Bechtolsheim, Cheriton, Jeff Bezos (Amazons founder)and a few other angels invested a total of $1Min the A round in 1998


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From a Garage

I am sure Googles first office will soon become a legend as it was aGarage. I could not find any picture

however theymoved to 165University Ave. inPalo Alto after 5 months.This is the home of many otherstartups including Logitech andPaypal

then inMountainView

and finally to the GooglePlex in 2003


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About Brian Lent

In 1994, a PhD student in the database group; asked if he would join

Yahoo! as employee No. 1, he laughed: You couldnt pay me enough money to work for a company called Yahoo!

In 1995, worked with Brin on the process of finding pieces ofinformation that commonly occur together. Brin wrote his crawler

program. Lent did not stick around, a decision he confesses heregrets. But in early 1996, Lent explains, We all said, There willnever be another Yahoo! Their research seemed purely an academicexercise.

He got a call from Microsoft in 2003, telling him the company wantedto kill Google, he recalls. He declined.

In 2004, he has not given up: he has an algorithm he calls DynamicPageRank, and he is CEO of Medio. I need to give it a try. Googleand Yahoo!, be warned. Did anyone say, There will probably neverbe another Google?


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The License


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The Google Fund Raising

After raising $1M with angel investors, Google nearly went out of moneyquickly. The founders also wanted to keep control of theircompany, so they built the strategy to attract the best 2 VCs so that onewould neutralize the other one. Thanks to their angels, it worked!!!This divide and conquer strategy enabled Google to raise $25M in May1999 with

- John Doerr of Kleiner Perkins (Amazon, AOL,Compaq, Genentech, Sun, - Mike Moritz of Sequoia (Apple, Cisco, Oracle,Yahoo,

Another $15M of round C with Yahoo, Eric Schmidtand many others (Arnold Schwarzenegger, Tiger Woods,). Schmidt, their new CEO, joined in 2001 before thecompany went public in 2004 (raising $1.6B)


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Googleware

Googleware is the nickname given to Googles verypowerful combination of Hardware and Software.

Founders are known to be extremely smart andpragmatic.

Today, Googleware means tens of 1000s ofsimple PCs.


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The Best Search Engine

A technology first .


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With a Buisness Model

A technology first . a business model second


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With a Buisness Model


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A Feel For Buisness

Larry Page certainly has a business-oriented mind,Larry may have been helped by his old brother,Carl, who founded eGroups and sold it to Yahoo.

Sergey has qualities in cost cutting and it is knownGoogle is not wasting money. They made cheapcomputers; they did not spend a lot on marketing.

Omid Kordestani, their first VP Sales was

previously VP Sales at Netscape andwas instrumental in designing thebusiness model.


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10% Inspiration

I was recently reminded that nothing comes without hard

work, even at Google.At Google, there is free food; one of the early hires was acook. Working environment is nice

but this gives more pressure to spend long hours at work.It was common to work 6 days a week. Youd better havethe energy and not too much family or private commitments.

And be young?


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About Innovation

It is well known that it is extremely difficult tokeep on being innovative.

Google has taken creative approaches: employees workin small teams (3 ideally) and are free to use 20% of their

working time on their personal projects that may becomefuture Google products. Google News, Froogle, Gmailhave roots in this 20% time as well as

And they do not seem to lose their humor


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Whats In a Name

the Google name comes from

The Googles people seem to love numbers:at IPO, they planned to raise $2718281828

e=2.718281828

at IP0, 14142135 shares were finally newly created

2= 1.4142135

at their secondary, they sold 14159265 shares

=3.14159265


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Googles Cap. Table


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Googles Cap. Table


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Whats Next

Obviously the company is very ambitious and many newthings will come.

One surprising element is the founders interest in clean

energies.

Another surprising element is the founders interest ingenetics. It seems they may use Googles computing

power to develop molecular biology platforms.

Google is teaming up with Craig Venter (of humangenome mapping fame) to use Googles vast computingpower to help unlock biologys mysteries, and maybe one

day to help you search through your genes.


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So Anything Wrong ?

The Googles motto: Dont Be Evil

They shut down Stanford network onceThey could have begun earlier

and yesit is becoming a business, a unique one but it willhave to face the constraints of commercial businesses


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Develop Early Stage

The story gives hints:

Yes, focus on great technologies,but more importantly focus on great people who

- are ambitious

- keep on innovating

- with patience and determination

- believe in their ideas

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