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...partner push comes as competition is pushing back. Microsoft is waking to the ad-revenue world, legions of Web 2.0 start-ups are dreaming up useful new tools, and Ask.com and Yahoo! are closing the gap in search. "People have been brainwashed that search can't get any better than Google," says Ask.com CEO Jim Lanzone. Ask has dumped its gimmicky Jeeves icon and zoomed in on search, sensing an opening...
...alliances will also allow Google to get back to its primary business. Schmidt acknowledges that the company had to redirect resources to search after its famous 70-20-10 policy--70% of the time spent on core issues, 30% on side and new projects--went slightly off-kilter. Marissa Mayer, who manages search products, says the company has assigned more engineers to search than ever before and plans to release a new search tool that will enable users to design and build their own flavor of Google search, scanning just the sites they're interested...
Credit Suisse analyst Heath Terry isn't worried about the odd billion spent on new facilities or the free lunches for which the company is famous. His concern is Bill Gates & Co. "Google knows that their biggest threat is now Microsoft," says Terry. Having dragged its feet on search while Google built an empire, Microsoft has been spending heavily on its Web index and recently partnered with Facebook to provide ads for the popular social site. "To believe that Yahoo!, Ask and Microsoft are not going to improve and take share from Google is naive," says Microsoft spokesman Adam Sohn...
...some, Google's numerous business deals overshadow the additions on its search side and suggest a slide away from consumers as it seeks new areas of growth. "Google has been an inspiring and innovative company, but the recent alliances seem less creative," says Irma Zandl, principal of the Zandl Group, a marketing and trend-forecasting agency in New York City. "They seem to be going in a less consumer-centric direction, focusing instead on monetizing to the max, which may be a good thing from a Wall Street perspective but perhaps not so good from the consumers' standpoint." Will consumers...
...should be, but we're not. As a leading company, the seeds of our own destruction are within us," he says. To keep them from germinating, Google has come up with 30 key questions to direct its strategic focus. A sampling: "What are the next big breakthroughs in search?" and "We have a lot of cash. What should we do with it?" Google just celebrated its eighth birthday with a strategic review. For 2007, the plan is to spend some of that cash on mobile technologies and more new partnerships...