Amazon vs Google

Amazon vs. Google. Relations between the two giants are warm, actually, but the temperature just might change a little as Amazon wends its way into the search business, hints an article by Nick Wingfield in The Wall Street Journal. Recognizing the rather direct relationship between online search and transactions, Amazon "has quietly established a beachhead in Silicon Valley...'to create the best e-commerce search technology out there'," as a company spokeswoman puts it. Although the company is owned by Amazon, it is set up as a separate enterprise called A9, that will launch officially in October "with about 30 people" and designs on fast growth.

Development of the A9 technology, which Amazon plans to license to other websites, "points to the importance that most of the web's leading companies now place on search technology," and more specifically the extent to which shoppers now start their searches on Google. While it's true that "many people use Google to find information," it's also true that "the company's business stems mainly from the advertising commissions it earns by directing users to sites where they can purchase products."

Amazon, naturally, would like "in" on some of that action, and they're not alone. Microsoft "is actively developing improved search technology," while Yahoo "is in the process of acquiring Google's primary competitor, Overture Services Inc. Then, of course, there's eBay, which is "also watching Google closely because many of the small businesses that sell through eBay also use Google to bring customers to their sites." This should be a good fight! In a separate, but related, development, Amazon is working on an enhancement to its "Look Inside the Book" feature. Currently, the technology allows shoppers to view "selected pages of books," but the next generation would make it possible to "search the text of electronic books," and presumably, sell more books.

-reveries.com