A Closer Look at Economics Mr. Joshi Basic Facts Founded September 1998 Founders: Sergey Brin & Larry Page Market Capitalization: $170 Billion (2010) Revenue: 26 Billion (2010) Net Income: 7.4 Billion (2010) Total Assets: 40 Billion (2009) Of which is cash: 24 Billion Employees: 20,000 Worldwide (2009) Google Offices Today… • http://www.google.com/intl/en/corporate/ad dress.html Google’s Stock Price • http://finance.yahoo.com/echarts?s=GOO G+Interactive#chart2:symbol=goog;range =my;indicator=volume;charttype=line;cros shair=on;ohlcvalues=0;logscale=on;source =undefined The Prototype (I used this in 1998!) A Brief History • Google began in January 1996, as a research project by Larry Page, who was soon joined by Sergey Brin, two Ph.D. students at Stanford University in California. • They hypothesized that a search engine that analyzed the relationships between websites would produce better ranking of results than existing techniques, which ranked results according to the number of times the search term appeared on a page. • They raised $1.1 Million for their business plan. • A patent describing part of the Google ranking mechanism (PageRank) was granted on 4 September 2001. The patent was officially assigned to Stanford University and lists Lawrence Page as the inventor. How Google Makes $ • In 2000, Google began selling advertisements associated with search keywords. The ads were text-based to maintain an uncluttered page design and to maximize page loading speed. • Keywords were sold based on a combination of price bid and clickthroughs, with bidding starting at US$.05 per click. Working for Google Headquarters is a complex of building. The lobby is decorated with a piano, lava lamps, old server clusters, and a projection of search queries on the wall. The hallways are full of exercise balls and bicycles. Each employee has access to the corporate recreation center. Recreational amenities are scattered throughout the campus and include a workout room with weights and rowing machines, locker rooms, washers and dryers, a massage room, assorted video games, foosball, a baby grand piano, a pool table, and ping pong. In addition to the rec. room, there are snack rooms stocked with various foods and drinks. Take a look at HQ • Of course, we’ll use Google Maps to see the Googleplex (as they call it) More Google Employee Benefits! Plus, Google has their own shuttle bus system that brings workers to and from home! AND, all Google engineers are encouraged to spend 20% of their work time (one day per week) on projects that interest them. Some of Google's newer services, such as Gmail, Google News, Orkut, and AdSense originated from these independent endeavors. The company stated that their analysis showed that half of the new product launches originated from the 20% time. Looking Ahead Google has bought land where they are building their next generation of computer along hydropower sources to be green (in both senses). River water also acts to cool hot computer parts. Google Products (all “free”) • Google Search • Gmail • Google Images • Google Maps • Google Earth • Google Videos (YouTube) • iGoogle Google Products you may not know… • Google Earth – Ancient Rome • Google Scholar • Google Books • Google Documents • Google Flu • Google Trends • Google Common Search • Google Chrome • Google Labs Is Google good for America (nay, the world!)? • Yes – It allows people everywhere to find resources on the Internet. It is a one-stop shop for searching. – It is committed to bring information for free worldwide, all for free – did I mention it was free?! • No - It has bankrupted many newspapers around the country. - It is a monopoly!