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January 27, 2006

Google Redefines Site Search Device Competition

by Matthew Brown

with Kyle McNabb, Eric Kim

This is an excerpt

Executive Summary

Google continues to change the search technology game. Google's announcement that it will offer its Mini search appliance in two cool new flavors — searching 200,000 or 300,000 documents for $5,995 or $8,995, respectively — represents more than the simple capacity increase would imply. Google's offering defines the basis of competition in a growing market for site search devices and focuses customer perceptions of search on three key variables: degree of simplicity, number of documents, and prices. This contrasts with the variables on which traditional enterprise search vendors compete: breadth of capabilities and scalability. With a pricing strategy based on searchable documents, Google will define how other vendors compete in site search devices. And we're likely to see other software categories follow suit — pairing software with hardware, and basing price on continuous variables that companies find hard to control — like the ever-increasing volume of searchable documents.

This is an excerpt

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