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August 24, 2005

Business News: Google's New Services Competing with AOL, Yahoo and Microsoft

From the New York Times:

Relax, Bill Gates; It's Google's Turn as the Villain
Published: August 24, 2005

SAN FRANCISCO, Aug. 23 - For years, Silicon Valley hungered for a company mighty enough to best Microsoft. Now it has one such contender: the phenomenally successful Google.

But instead of embracing Google as one of their own, many in Silicon Valley are skittish about its size and power. They fret that the very strengths that made Google a search-engine phenomenon are distancing it from the entrepreneurial culture that produced it - and even transforming it into a threat.
A year after the company went public, those inside Google are learning the hard way what it means to be the top dog inside a culture accustomed to pulling for the underdog. And they are facing a hometown crowd that generally rebels against anything that smacks of corporate behavior.

Nowadays, when venture capitalists, entrepreneurs and technologists gather in Silicon Valley, they often find themselves grousing about Google, complaining about everything from a hoarding of top engineers to its treatment of partners and potential partners. The word arrogant is frequently used.

The news last week that Google plans to sell an additional 14 million shares of stock, adding $4 billion to its current cash reserves of $3 billion, will only provide more reasons to gripe.

"I've definitely been picking up on the resentment," said Max Levchin, a founder of PayPal, the online payment service now owned by eBay. "They're a big company now, doing things people didn't expect them to do."

LINK to rest of article

related article:
Google to Launch Messaging, Voice Service via Yahoo news

Posted by Becky at August 24, 2005 9:58 AM Posted to Technology