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As Google matures, startups keep it young

Internet titans to meet, advise G8: source
Paris (AFP) March 4, 2011 - The heads of virtual giants Facebook, Google and eBay will be invited to meet in Paris in May to formulate proposals on the future of the Internet ahead of a G8 summit in France, a sector source said Friday. The French government "has decided to organise a forum in Paris days ahead of the G8, bringing together the heads of various Internet firms along with experts and specialists," the source told AFP.

French President Nicolas Sarkozy -- who will host the G8 gathering of leading industrialised powers in the western town of Deauville -- originally proposed such a meeting back in January during a visit by US counterpart Barack Obama. "The heads of Facebook and Google, Mark Zuckerberg and Eric Schmidt, as well as eBay, Twitter, and (Chinese search engine) Baidu," will be among the main invitees for the Paris meeting, the source said. "A delegation will then head off for Deauville to transmit their opinions and conclusions," to the heads of state and government gathered there for talks on May 26-27, she added.

No formal invitations have yet been sent awaiting an agreement in principal from the other Group of Eight nations -- Britain, Canada, Italy, Germany, Japan, Russia and the United States. At Sarkozy's initiative the issue of the Internet is included on the G8 agenda, to allow discussion on hot topics such as cybercrime, domain name governance, freedom of expression and protection of private data, the source said. Some of those subjects could yet be yanked off the agenda if some of the summit participants, notably the United States, are not in agreement.

British launch broadband wiring program
London (UPI) Mar 5, 2011 - The British government is beginning an ambitious program to wire the country with broadband Internet. Chancellor of the Exchequer George Osborne announced Friday local governments will get $80 million for the first phase, The Daily Telegraph reports. Speaking at a Hewlett Packard facility in Bristol, Osborne said, "Broadband is crucial for the country's economic future; that's why the coalition government is investing over half a billion pounds in its infrastructure.

"We want to have the best superfast broadband network in Europe by 2015, and today's 50 million pounds will benefit up to 800,000 homes and businesses." The government plans to spend $860 million over four years to connect areas where it is not profitable for the market to provide high-speed Internet. An additional $490 million will come from the TV license fee for work after 2015. The fiber upgrades will enable connection speeds of up to 100 megabits per second and services such as movie downloads and television streaming for 85 percent to 90 percent of the country. Britain is lagging behind the rest of the Europe, with only 0.2 percent of the country currently on rapid fixed broadband networks.
by Staff Writers
San Francisco (AFP) March 6, 2011
Google co-founder Larry Page is taking charge of the maturing Internet giant in a move seen as recapturing youthful roots in the face of competition from hip upstart startups like Facebook.

The California firm isn't waiting for Page to formally take the chief executive chair being emptied by Eric Schmidt in April, it is tapping into the energy of nimble entrepreneurs bought with Google's ample war chest.

"Any engagement that Google can have with the startup community, with entrepreneurs, we learn and we are inspired," said David Krane of Google Ventures, an arm of the firm that invests in new ideas and young companies.

"We need to be close to the people who are moving quickly and chasing big dreams at the early stage, he said in a Friday interview with AFP.

"Because that can influence and shape the way that we run as we try to fight off some of the natural side effects that come as a company gets larger."

Google has grown to a global powerhouse with 25,000 employees in far-flung locations since it was started by fellow Stanford University students Sergey Brin and Page in 1998.

Acquisitions of startups have brought technology and talent to Google, with entrepreneurs helping keep in-house engineers in tune with front line innovations.

"I feel it is more that we are having an impact on Google versus Google changing us," said Jonathan Sposato, the founder of two startups bought by the ruler of the Internet search market.

"That is a good strategy for bigger companies to stay on the edge and inoculate the organization with fresh thinking and different perspectives."

Sposato became head of photo products at Google after it bought his online picture editing startup Picnik in 2010.

The first company he sold to Google became "gadgets" tools that let people make mini-programs for Web pages.

"You see this really respectful way Google treats the incoming companies," Sposato said. "Things don't get broken apart."

Sposato works at Google offices in the Washington State city of Seattle where Picnik began, occasionally commuting to the headquarters in Mountain View, California.

"Google is learning a lot from the team and at the same time we are learning a lot," Sposato said. "There is benefit to bringing in the acquired company's culture."

Early last year, Google bought DocVerse for a price pegged at $25 million or more and put founder Shan Sinha to work on a Cloud Connect service that lets people to collaborate online on Microsoft Office documents.

"There is definitely merit to the idea that entrepreneurs can bring unique perspectives," said Sinha, who worked at US technology titan Microsoft before starting DocVerse.

"You bring risk-taking personalities in to rethink the way markets and products should be working."

Sinha's team sells Web-based Gmail to businesses and it is one of Google's fastest growing products.

While Google has grown to the point that its gaze is naturally drawn to bigger markets, entrepreneurs are often keenly tuned into smaller markets that could explode into big trends, Sinha observed.

"Google firmly believes it should have a startup culture," said Danny Sullivan of search news website Search Engine Land.

"That core foundation is what Larry and Sergey remember," he continued. "They like to have those kinds of people around Google."

Acquisitions are not a sign that Google can't create innovations in-house, but rather an indication the firm is smart enough to find emerging talent, according to Sullivan.

Schmidt, the chief executive over the past decade, will step aside in April for Page.

Brin, who along with Page and Schmidt has led the "triumvirate" at Google's helm, will be responsible for strategic projects and new products.

Schmidt, 55, a former chief executive of Novell, is to remain with Google as executive chairman, focusing on deals, partnerships, customers and government outreach.

He will also act as an adviser to Page, who turns 38 this month, who served as CEO previously, from 1998 to 2001, and 37-year-old Brin.

The shakeup comes as Google is under increasing pressure from social networking rivals such as Facebook and Twitter.

In a blog post, Schmidt said: "Larry, Sergey and I have been talking for a long time about how best to simplify our management structure and speed up decision making."







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