On the surface, today’s decision by Google to shut down Google Answers is not a big deal.
Symbolically, it is, and that is because unless you have followed Google somewhat closely or been online for years, you might not even recall that Google Answers was one of the first forays away from pure Web search for the Mountain View firm), before Gmail, Google Earth, G-this, G-that. Many of things that pursued Google Answers went on to become hits, at least from a market share or product innovation perspective.
Strategically, it is a fairly major decision even if it is played down by Googlers and bloggers. Google is now a company that realizes that technology alone can only scale so much (ironic given that Google Answers actually entailed, sit down folks, humans to help it grow) and it needs to better allocate its human resources to its online (and offline) ambitions.
Even more so, it shows that if and when a competitor firmly beats it in something, it will eventually learn to throw in the towel. Search Engine Watch’s Danny Sullivan points to a chart from Hitwise that speaks volumes:
Apparently, Yahoo! beats Google in some things.
Jokes aside, I think you can start to see a crystalization of what Google does, and what Google is. Clearly an outcome of upper management’s “features, not products,” Google Answers is a sign of things to come.
No one is saying that Google’s stock is going to level off because of one move that had nothing to with its income statement, but the signal it sends to Wall Street and Madison Avenue is that if Google wants to keep its growth engine in high gear, it cannot do everything for everyone at all times.
Many industries can sleep a bit easier tonight.
Then again, it will also probably free up some services to focus on the more interesting and promising things.
Disclosure: Long YHOO.
Subscribe: