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From web2expo conversation with Eric Schmidt and John Battele

Posted: December 31st, 1969 | Author: | Filed under: Uncategorized | No Comments »

From web2expo conversation with Eric Schmidt and John Battele

Picture of IrvinEric Schmidt – CEO of Google and John Battelle – CEO of CMP

Announcement… Give a choice of what we will announce today… Usually only two per quarter

1) Gmail finally comes out of beta

2) Google offers toilet-based Wi-Fi service

3) Google diversifies with Google Food Biz

4) None are announcement

5) Google doc and spreadsheets, a way to do presentations within spreadsheets, documents… heading to office direct conflict. Search in beta. How will M$ respond. 2001 and 2002, its nice to not have to worry about Microsoft. Microsoft doesn't care about Google's space.

Is this a competitor to Microsoft

No, it doesn't have all of the features, it is casual, it is sharing. using emergent architecture. Web2.0 marketing term. Transition from desktop to web development architecutre.

Come'on its a competitor…. Ton of people spending lots of money to office. Most people don't use all the features, this gives them an alternative.

I'm sure MS will have a response, they have a whole suite of web products out there. For people who need sharing, they will use it. Testament to the strength of web2.0.

First real material deal, acquisition yesterday, sergei told of the tree revenue deals, they could always do a deal with double-click, but we'd never do that…. double-click was seen as certain kind of advertising, seen as the opposite, what's changed?

Four major thrusts around Google., one is they are building the worlds most interesting supercomputers. End user solutions, how will they use solutions. Third, advertising, Fourth, the way google is run, they way they make decisions. Decided to offer full scale of advertising solutions. Looked at television, looked at print, looked at TV.

Advertising customer would like a single way to lookat ads, let the computer arrange that for them. Difficult to measure ads. They are more targeted, they have better tools, many companies are happy with their products. Their stuff, plus google's stuff will make a better product. The advertiser will get better efficiency, the user will get targetd ads.

Never known you guys to do a deal where the math doesn't work, the implications in the market is that everyone is terrified, why pay 3 billion, when the wisper amount is 2 billion.

Can't say about the deal, google has a strong advertising business. Have a more global footprint. Greater cash flow, married to the assets and people double-click has, that's how you get to the number

Google is good at driving efficiency by understanding data, creating algorithms that create more efficient systems for supply and demand. double-click are human beings. Are you going to do that too?

Integration is just beginning. Humans are making good marketing judgements, can benefit from automation. More info ahead of them

couple of other things, but one or two more things about double-click. One os performix. Optomizing web sites to do better at google. Which puts you into the SEO and sem business. What's your long term plan with performix.

Important community, but they have no plans now

Google pack. Application that deletes double-click cookies.
Will it end

Application is from a 3rd party, they like it, so they'll figure it out

CMP works with Google, and partnership with double-click. CMP worrying about partnership.

What were you worrying about

You would have too much information about my business. People getting ahead of them at their own business.

Google is not forced to use double-click, same for google, if you were unhappy, you have other choices. For that reason, it makes no sense to get you to the point that you don't want the service. Issues that they have to work out. They must solve the problem of advertisers and partners comfortable. Keep double-click completely separate from google ad system. Once they understand what the computers do. They can't afford to lose partners.

Microsoft & AT&T started calling Anti-trust

Did you say Microsoft and AT&T? What is the year?

Beautiful thing having them complaining in the wall st journal


do you have a response?

Its false, we are not anti-trust. Long list of reasons, advertising is almost a trillion dollars, totality is 1 tenth of that. They just lost.

Want to move on, lets talk about another controversial issue around google, magnified because it involves the media. YouTube copyright lawsuits. Do you believe that Viacom's approach is a negotiating tactic?

Yes I do, the DMCA puts a shared burden on people who are operating in the internet sphere. If someone violated copyright, roughly a safe harbor, if companies act quickly to take stuff down. They took something down too quickly a sixteen year old sent the request. They acted too fast. Google depends critically on copyright and copyright law, and that the holder decides what to do with that copyright. They gave us the proper takedown notices. They immediately took them down, they complied with the law, they sued us, user traffic went straight up because YouTube is a sharing and cultural phenomenon.

If Viacom suit is a negotiating tactic, what are they negotiating

Bringing out a tool, claim your own content, under copyright holder's law, they have to monitor what is going on on your site, as that is rolling out the issues at viacom become their own.

What is S3

S3 is a good start, good example of a platform business, in google's case, they are interested in offering docs and spreadsheets to industry and education, both companies have the right principles in mind

are you going to do something like S3


its a space you are interested in


platform is very powerful. People out here are building AJAX and XHTML apps that are very powerful I don't think any one company will dominate the platform.

one group hasn't been part of the convo, telcos, aren't open will they change, and are you concerned

not as competitors, they are partners. Building supercomputers, using google api, services exposed. Similar advertising apis to allow them to plug into ad apis.

Telcos have different approach to the web. Net Neutrality are you concerned about that?

no very concerned, if net neutrality gets broken, it create the environment for us and others. If any company could survive, it would be Google

reallocatoin of margin to telcos

business negotiation, but it should not be enshrined in law, necessary for next versions of entrepeneurs. Terrible if we lost that in society.

mentioned entrepreneurs, what looks interesting to google? What aren't you interested in.

how can I answer legally

biggest growth areas are going to be in the mobile space. People treat mobiles phones as extensions of their persons. They are very personal, very portable, GPS, next generations platforms will have power. Mobile is an intersting space. Local space, most transactions are for local products, most search engines don't fully take advantage of information that is inherent in the web. Those are the 2 that come to mind immediately.

One of the questions that struck me is what is the first thing you think of in the morning?

I open my email

no comment on bill gates. What online has meant, people are online all the time now, the thing I think about is scaling. When the internet really took off in the mid nineties. People really talked about how big it would be. There were a number of companies not yet founded that were involved. You have to be scalable, and you have to move very quickly. Scaling for google means hardware, fiber, etc… Really early in the scaling of the internet. Just getting information that is in small groups into those platforms.

Last question… What about data portability and transparency and rights, and so on. We are all creating extrordinary clouds of data in everything we do. Pulling all that data together is google's mission statement. But can I do it, can I share it.

Google has made a commitment to never trapping user data. If you felt that Google was doing something bad, we want for you to be able to use someone else's service. Working on technologies to deal with search history, etc… Users are not going to use technologies they feel trapped into.

You're on the board of apple are you going to get the iPhone before everyone else. What has that done for you?

Apple is an amazing story as a company as a technology supplier. Some of the best people in the world work at apple in a different culture. There have been a number of collaborations between Google and Apple, the one now is the maps in iPhone.

Apple as a suite

Any tension around the board about getting into each other's business.

No, we have had a long conversation to make sure …. let me say it a different way, there are rules about director roles. So no, no conflict of interest.