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Page:1 2006 Bala Iyer (bala@bu.edu),

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Page:2 2006 Bala Iyer (bala@bu.edu) Questions What is Google? What are Googles core-capabilities? How would you use some of Googles capabilities? Business principles

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Page:3 2006 Bala Iyer (bala@bu.edu) Competitor response Law suit Dr. Kai-Fu Lee Talking to AOL Reorg and Vista redesign AdCenter in 2005 Oracle busy with acquisition digestion Sun forms partnership Yahoo!

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Page:4 2006 Bala Iyer (bala@bu.edu) Web 2.0 Source: http://www.oreillynet.com/pub/a/oreilly/tim/news/2005/09/30/what-is-web-20.html Program to program Program to people Components everywhere designed vs. emergence do-it-yourself

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Page:5 2006 Bala Iyer (bala@bu.edu) Industry Stack Systems (OS, file sharing, terminal access, db access, client-server) Middleware Services (systems management, application & transaction servers, collaboration & messaging database) Application software (CRM package, SCM package, BI, HR, engineering & design, e-biz) Services (IT consulting, systems integration, outsourcing, training & education, maintenance) Data management (meta data, distribution, schema evolution, temporal) Hardware

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Page:6 2006 Bala Iyer (bala@bu.edu) Hardware Own hardware configuration/cluster ~100, 000 servers > 350 racks >30,000 m/c >60,000 CPUs 126,368 Ghz of processing power 63,184 GB of RAM 2,527 TB of hard disk space from Prof. Strassmans lecture lecture Scale servers while reduce cost/CPU cycle

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Page:7 2006 Bala Iyer (bala@bu.edu) Query processing architecture Each query reads 100s of Mb of data, 1000+ servers and 10s of billions of CPU cycles. 150 million queries/day (2000/sec); response time < 0.25 sec Each cluster has the same architecture 8 billion web pages, 1B+ images, now messages distributed over clusters Google web server Index server Index servers Index server Document servers Information about users Ad servers TB of data

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Page:8 2006 Bala Iyer (bala@bu.edu) Operating systems Custom developed Distributed OS Google file system (GFS) Metadata management Data dictionary and markup language for interoperability Global work queue (GWQ) MapReduce Real-time coordination; workload distribution; fault tolerance; performance monitoring Based on Linux Java (recent announcement) Desktop bar

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Page:9 2006 Bala Iyer (bala@bu.edu) Data User Desktop files Cookie Key words Gmail 8 billion pages (recently claimed to have three times that of the closest competitor)

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Page:10 2006 Bala Iyer (bala@bu.edu) Tools & applications Core apps AdWords, AdSense Google Earth Search Froogle Google Talk StarOffice (52 million downloads)

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Page:12 2006 Bala Iyer (bala@bu.edu) Services Gmail Google Mini Application provisioning dark fiber Wi-Fi APIs Feb 2006 Adaptors for: Documentum FileNet, Oracle and Siebel PageRank + GSA Web data Enterprise data

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Page:13 2006 Bala Iyer (bala@bu.edu) APIs everywhere! For RentFor Rent Powered by craigslist and Google Maps craigslistGoogle Maps

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Page:14 2006 Bala Iyer (bala@bu.edu) Mash-ups everywhere! 0.52 betweeness centrality 0.78 structural hole

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Page:18 2006 Bala Iyer (bala@bu.edu) How does it work? Auctions Satellite data AJAX API Every call is tacked GoogleEbayAmazonYahoo! Pricing Case by case (1000/day free) Individual 10,000/mo free Basic 30,000/mo free $2.90/1000 queries + $500 Professional $1.6/1000 queries + $1000 Enterprise $1.25/1000 queries + $5000 Free (10,000/day) Free data

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Page:19 2006 Bala Iyer (bala@bu.edu) Business models Advertising Affiliate programs/lead generation Subscriptions Pay-per-transaction

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Page:20 2006 Bala Iyer (bala@bu.edu) The old order changeth, giving place to new Source: ZDNET http://blogs.zdnet.com/BTL/?p=2484http://blogs.zdnet.com/BTL/?p=2484 Mashup ecosystem poised to explode Posted by David Berlind

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Page:21 2006 Bala Iyer (bala@bu.edu) Old stack metaphor Windows, Linux, MacOSOS API Layer Networking Graphics Storage Security Messaging Memory Apps Layer Games Mapping Calendaring Transaction proc Office productivity Social networking Physical assets Environment Managing computer resources

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Page:22 2006 Bala Iyer (bala@bu.edu) New services stack Internet/Web 2.0OS API Layer RSS/atom Commerce Storage Security Messaging Identity Apps Layer Mapping Calendaring Transaction proc Office productivity Social networking Physical assets Knowledge Layer Domain/context/SLA Dynamic allocation Collaboration Expertise location Coordination Measurement/ monitoring Sense making Environment Sensory Layer Managing capabilities

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Page:23 2006 Bala Iyer (bala@bu.edu) Core capabilities Fast search Continuous innovation (beta products) Personalized results thru data integration Scalable platform Combinatorial innovation API/meta-data management

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Page:24 2006 Bala Iyer (bala@bu.edu) 100,000 servers, Wi-Fi GoogleOS Search, Maps, Desktop Application provisioning Google Enterprise solutions Systems (OS, file sharing, terminal access, db access, client-server) Middleware Services (systems management, application & transaction servers, collaboration & messaging) Application software (CRM package, SCM package, BI, HR, engineering & design, e-biz) Services (IT consulting, systems integration, outsourcing, training & education, maintenance) Data management (meta data, distribution, schema evolution, temporal) Hardware API toolkit

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Page:25 2006 Bala Iyer (bala@bu.edu) Business principles Defendable assets Do it yourself Presence in every layer of the industry stack Customer behavior data Architecture wins business platform wars Manage emergent architecture Meta-data management Ecosystem based innovation Modular development Services platform (APIs) Network based innovation Two-sided markets Serving the Long tail Talent magnate 70/20/10 Prediction markets

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Page:26 2006 Bala Iyer (bala@bu.edu) Multi-sided markets Platform Consumers (80 million) E-business firms Fortune 500 firms Software developers ISVs Open source community Deliver appsSupport development Core benefits

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Page:27 2006 Bala Iyer (bala@bu.edu) Wired issue 12.10 October 2004 Unique applications

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Page:28 2006 Bala Iyer (bala@bu.edu) 70/20/10 principle Source: Google Factory Tour

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Page:29 2006 Bala Iyer (bala@bu.edu) How does it impact your business model? 1. Value proposition or value cluster 2. Marketspace offering product, service, information, or all three 3. Defendable resource systems 4. Revenue model

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Page:30 2006 Bala Iyer (bala@bu.edu) Resources Great Giveaway by Erick Schonfeld, Business 2.0 April 2005. What s next for Google by Charles Ferguson, TechnologyReview.com January 2005. Amazon: Giving away the store by Wade Roush, TechnologyReview.com January 2005. All the links cited in del.icio.us/balaiyer www.google.com

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