News
        
        Google Upgrades Corporate Search Engine 
        
        
        
        Hoping to become less dependent on Internet advertising, online search engine 
  leader Google Inc. is introducing a tool designed to make it easier for companies 
  and their workers to find vital information scattered across a maze of complex 
  software applications.
The latest upgrade to Google's 4-year-old search engine for corporate America 
  underscores the Mountain View, Calif.-based company's determination to develop 
  other revenue channels besides advertising, traditionally a volatile market 
  vulnerable to unpredictable swings in spending.
With the improvement unveiled Wednesday, Google's corporate search engine will 
  be able to fish through a deep pool of data and display the requested information 
  in a box near the top of the computer screen so users won't have to scan through 
  other pages.
This "one box" approach is similar to the system that Google deploys 
  at its own Web site whenever visitors are looking for information about local 
  weather forecasts or stock market quotes. In those instances, Google's search 
  engine provides a snapshot of requested information at the top of the results 
  page.
To make the tool work for corporate search, Google teamed with several other 
  leading makers of business software. The list of partners includes Oracle Corp., 
  Cisco Systems Inc., Salesforce.com Inc., NetSuite Inc., Cognos Inc., SAS Institute 
  Inc. and Employease Inc.
The collaboration reflects Google's desire to play a much larger role in the 
  business software market, said Whit Andrews, a research vice president for Gartner 
  Inc. Google's ability to "work well with other software vendors will be 
  absolutely critical to its success" in the corporate market, Andrews said. 
  "That (ability) hasn't seemed to be in Google's DNA."
Google has had limited success peddling its business software so far. In 2005, 
  Google collected less than $75 million from software licenses, a blip in its 
  total revenue of $6.1 billion. Advertising currently accounts for 99 percent 
  of Google's revenue.
"We are certainly much smaller than the mother ship, but we are doubling 
  in size every year and are profitable," said Dave Girouard, who oversees 
  Google's corporate search division.
Some companies have been reluctant to buy software from Google because they 
  doubted a vendor specializing in consumer products would be able to protect 
  their data from computer hackers and other trespassers, said AMR Research analyst 
  Jim Murphy.
But Murphy suspects many of those fears will fade now that Google is working 
  with well-established business software makers to make corporate search as quick 
  and easy as looking up information on Google's main Web site.
"This opens up a whole new realm of possibilities for Google," Murphy 
  said. "The other (corporate) search engine vendors are all going to be 
  scrambling, trying to figure out where they fit in this environment."
The corporate search market remains relatively small, generating less than 
  $350 million annually, Gartner estimates. The major players in the field currently 
  include Autonomy Inc., Fast Search & Transfer and IBM Corp.
If Google signs up more corporate search customers, it may open the door for 
  the company to sell other software applications, such as its e-mail service 
  and recently launched calendar service, CEO Eric Schmidt said in an interview. 
  Schmidt described Google's corporate search engine as "a strategic beachhead 
  for solving interesting problems" in corporate America.