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A comment on Neeva (search engine with a privacy and AI focus) is shutting down. Parent comment

Re:Neeva (search engine with a privacy and AI focus) is shut... by echelon on Saturday May 20, 2023 @02:00PM (#36014111)
Or a lot less profitable.

“From now on, the [gross margin] of search is going to drop forever,” Nadella said in an interview with the Financial Times.

“There is such margin in search, which for us is incremental. For Google it’s not, they have to defend it all,” he added, referring to the competition against Google as “asymmetric”.

https://www.ft.com/content/2d48d982-80b2-49f3-8a83-f5afef98e...

https://archive.is/4JOW1

It's 50% of Google's revenue, and they'll suffer immensely if this goes away.

[ Parent | on HN ]
Re:Neeva (search engine with a privacy and AI focus) is shut... by jjeaff on Saturday May 20, 2023 @02:24PM (#36014333)
I'm curious what the 50% figure includes?

Because my understanding is that about 60% of Google's total revenue is search ads, and if you include network ads (which would be relevant since they are at risk from AI as well) then it is more like 70%.

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Re:Neeva (search engine with a privacy and AI focus) is shut... by joelcloud on Saturday May 20, 2023 @03:07PM (#36014656)
Adsense revenue from different websites will drop because it will be summarized and cost per query will go up. This AI push will backfire
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Re:Neeva (search engine with a privacy and AI focus) is shut... by wbl on Saturday May 20, 2023 @03:16PM (#36014728)
The buggy wip maker couldn't have stopped Ford
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Re:Neeva (search engine with a privacy and AI focus) is shut... by somat on Saturday May 20, 2023 @03:38PM (#36014901)
A strangely mixed metaphor, and incorrect, the buggy manufacturer did well enough... for a while at least.

https://en.wikipedia.org/wiki/Studebaker

[ Parent | on HN ]
Re:Neeva (search engine with a privacy and AI focus) is shut... by TylerE on Saturday May 20, 2023 @05:31PM (#36015811)
Not a mixed metaphor, it’s a standard phrase.

Note buggy WHIP makers, not buggy makers.

[ Parent | on HN ]
Re:Neeva (search engine with a privacy and AI focus) is shut... by somat on Saturday May 20, 2023 @06:20PM (#36016160)
It is mixed because it is comparing two different class of items

whips to cars does not really compare. Cars to buggies would compare or perhaps whips to steering wheels.

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Re:Neeva (search engine with a privacy and AI focus) is shut... by stonogo on Saturday May 20, 2023 @07:37PM (#36016601)
No, it's not mixed. It's related to the saying about the people who get rich off a gold rush being the ones who sell shovels. In the buggy-whip case, it's about a company not understanding the market changing entirely to make them obsolete. The transportation market moved to cars, and so nobody needs a buggy whip.
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Re:Neeva (search engine with a privacy and AI focus) is shut... by AndrewKemendo on Saturday May 20, 2023 @06:09PM (#36016071)
Watch the movie “other people’s money” for the original reference
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Re:Neeva (search engine with a privacy and AI focus) is shut... by stonogo on Saturday May 20, 2023 @07:43PM (#36016631)
The original reference is probably Levitt's "Marketing Myopia" (https://books.google.com/books?id=Zn4foOUm3AoC). Levitt uses it to illustrate that companies should focus on customers rather than products.
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Re:Neeva (search engine with a privacy and AI focus) is shut... by AndrewKemendo on Saturday May 20, 2023 @09:45PM (#36017260)
Well OPM came out in 1991 so I doubt it.

https://youtu.be/62kxPyNZF3Q

[ Parent | on HN ]
Re:Neeva (search engine with a privacy and AI focus) is shut... by stonogo on Monday May 22, 2023 @12:20PM (#36033391)
Note the imprint, "Harvard business review classics." What I linked to is a 2008 republication of a book from 1975. The buggy-whip analogy also appears in a journal article of the same name by the same author in 1960. More info here: https://hbr.org/2016/08/a-refresher-on-marketing-myopia
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Re:Neeva (search engine with a privacy and AI focus) is shut... by AndrewKemendo on Monday May 22, 2023 @09:20PM (#36038697)
Thanks for the detail and I should have dug deeper
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Re:Neeva (search engine with a privacy and AI focus) is shut... by wbl on Sunday May 21, 2023 @02:55AM (#36018609)
Because they invested in the new up and coming thing and transferred the knowledge that applied.
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Re:Neeva (search engine with a privacy and AI focus) is shut... by perelin on Saturday May 20, 2023 @07:49PM (#36016654)
There is a good visualization of Googles income statement here

https://www.reddit.com/r/dataisbeautiful/comments/xjbpfo/oc_...

looks you are about right

[ Parent | on HN ]
Re:Neeva (search engine with a privacy and AI focus) is shut... by hgsgm on Saturday May 20, 2023 @08:32PM (#36016873)
I'm surprised that a court-proven antitrust violator Microsoft would speak so openly about abusing it's dominant position in a different business to finance dumping a different product at low price to destroy a competitor.
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Re:Neeva (search engine with a privacy and AI focus) is shut... by akdor1154 on Sunday May 21, 2023 @03:50AM (#36018798)
I was surprised as well for the same reason.. but then I thought about how Google has directly attacked Office, Windows, and Windows Mobile in a pretty similar way.
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Re:Neeva (search engine with a privacy and AI focus) is shut... by zeusk on Sunday May 21, 2023 @04:10AM (#36018879)
Like google was being a saint to Microsoft with Chrome and their web properties on Windows Phone.
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