On the face of it, the book can be looked at as a story of Google - from a niche startup to the industry behemoth we know today. While that is the overall theme, it goes much deeper than that and tries to answer the question - what makes Google tick? It is an ode to the spirit of constantly questioning the status-quo and trying to build truly revolutionary things. This evident from the inception of Google when Larry Page wanted to index the whole internet - something which was thought impossible in the early 2000s.
Larry Page did not start with the aim to build a search engine. The original goal of the research project was to find out most relevant comments on a given web page. From that the idea evolved into finding the most relevant web pages - Google. The breakthrough, which book talks about in depth, was the idea that number of links to a given web page (back-links) is an indicator of its popularity and relevance. And indeed, the original name of search algorithm was “Backrub”. Larry’s desire to build a knowledge repository for the world and not to be “Tesla-ed” (referring to Edison vs. Tesla) led him to not publish his research and start a company with Sergey Brin.
From then on, they faced 2000s version of a startup life - money crunch, constant firefighting, running servers, need for an experienced CEO etc. Work from these early days is the start of many things which we consider industry-standard today. However, while Google was a leading search provider, it was not always flush with cash. This where Google built its ad empire. It is an amalgamation of technology, economic theory (auction models) and an age-old way of making money (ads).
Google could provide all its services for free and make money from ads. The mantra was simple, the more people use internet, more money Google makes.
While Chrome, Docs, Analytics and other products were huge hits, not everything went Google’s way in the social network world. It was caught chasing tail lights with Wave, Plus, and other such products.
Throughout the book, what is most interesting is the story behind “how” each product came into being. How engineers took charge and sometimes went nuts to build an industry defining product.
Learnings and Takeaways
- Data is the great leveller: Everything at Google has to be proved by data. Which design works better? Where to invest money? How to design datacenters? Who do we hire? All of these questions have to be answered with data. This idea is key to aligning teams and allowing everyone to contribute to the product - all they have to do is use data to make their case.
- Auction models: Google ads used the 2nd price auction (Vickery auction) model for bidding of ad position. Although counterintuitive, this model increases the depth by making the top spot less elusive at the same time reducing buyer’s remorse.
- Business model: Give the razor for free and make money on blades. This has been a very old business model. But in the internet era, there is an equivalent of it. You give away the product for free and make money on the backend services. Postman is based on a similar model.
- Hiring: At Google, recruiters always looked out for one truly distinct capability or achievement. If someone has spent the time and effort to become a world foosball champion, they sure have the capability to learn sales. Trying to apply this principle for hiring for our team.
- Do first, apologize later: Google’s engineers are notorious for this. It is how Gmail and other major products came into being. If you want to do something, rather than waiting around, you do it and then show people the value. Seems like a good principle to start something new .