Google Keeps Technology Costs Low with New Inventions

We’ve heard the stories about how Google uses the cheapest servers it can buy and simply throws them away when they crash. The NYT digs a little deeper and finds Google has a lot of cool tools it’s invented to reduce cost and increase efficiencies.

For example, Google designed a software system it calls the Google File System that keeps copies of data in several places so Google does not have to worry when one of its cheap servers fails. This approach also means that it does not have to make regular backup copies of its data as other companies do.

Another system, called the Google Work Queue, allows a big pool of servers to be assigned to various tasks as needed and reassigned to other projects later.

Omniture IPO Analyzed

TheStreet.com takes a look at the recent Omniture IPO and tries to evaluate whether the company will be a sure-thing or not.

The 10 year old company is certainly one of the more dominant web analytics vendors, but faces tough challenges from Web Trends and WebSideStory.

The upside:

Omniture’s revenue has more than doubled for three years in a row. And the first quarter showed it’s on track to make it four in a row: Revenue in the quarter rose to $16.4 million from $8 million. That quarter also showed operating expenses, which went from 69% of revenue in 2004 to 93% in 2005, fell back to 79% in the first quarter of 2006.

The downside:

Not All Google Touches Turns to Gold

Business Week takes a cold-hearted look at the facts about many of Google’s new product launches – though they start with a sizzle, they end with a fizzle.

…if you cut through the hype, Google’s intimidation factor quickly fizzles. An analysis of some two dozen new ventures launched over the past four years shows that Google has yet to establish a single market leader outside its core search business, where it continues to chew up Microsoft and Yahoo.

Some analysts are concerned that Google is desperate to find a new revenue stream and is launching new products, not without a plan, but because the can.