Our secret sauce
googleblog.blogspot.com
googleblog.blogspot.com
Everyone is used to going to Google to search. Heck, you often hear people use the word google instead of search. This habit is hard to break. Switching to the competitor is not just a few keystrokes away. It takes breaking the habit of reaching for Google whenever I need to search.
It takes more than a slightly better product for folks to break this kind of habit. It's the same reason why Google has trouble competing with established search engines in other countries, even if Google has better results.
When Google came out it was a LOT better than everyone else, so people switched. Now the competitors are barely catching up to Google, or at best making incremental advances over Google: not enough to get people to switch.
There's no doubt in my mind that if Google had failed to keep up with SEO spammers, someone else would have replaced them just like they replaced AltaVista. The value proposition would be simple: No more poring over search results to find the one non-spam page you were actually looking for buried on the fourth page.
http://publications.mediapost.com/index.cfm?fuseaction=Artic...
As far as I know Yahoo has been around for just as long as Google. Cool article though.
Side note: I think it's cool that both Google and Yahoo came out of projects started by Stanford students.
"Lock-in" / "Network effects" - I would argue that both come into play by the sheer fact that almost all web sites are being optimized towards the way Google's algorithms (are supposed to) work.
As a postscript, that patent came from Overture (which came from the Idealab incubator), which itself was a billion-dollar buyout. I wonder if a company will in turn buy its use off Google for even more?