Spring 2006 | V ol.48, No.3 | REPRINT SERIES California Review Management Managing in a “Small World Ecosystem”: Lessons from the Software Sector Bala Iyer Chi-Hyon Lee N. Venkatraman © 2006 by The Regents of the University of California Managing in a “Small World Ecosystem”: LESSONS FROM THE SOFTWARE SECTOR Bala Iyer Chi-Hyon Lee N. Venkatraman oogle, Yahoo!, Amazon, and Microsoft are intricately intercon- nected through a complex web of cooperation and competition. Yahoo!, an early investor in Google, used Google’s search engine G technology until it bought Inktomi in 2002. Besides buying online advertisements from Google, Amazon’s subsidiary, A9, uses Google’s index on the Web with its own content to create search results. The relationship between these two ﬁrms is further reinforced by the presence of John Doerr (of Kleiner Perkins—the venture capital ﬁrm that promoted both Amazon and Google) on the boards of both companies. However, to differentiate itself from Google, Yahoo! allowed users to search inside Adobe’s postscript ﬁles. Google then upped the ante further with a desktop search feature to enable users to seamlessly search through ﬁles and e-mail on their computers and the web. Microsoft—which currently relies on a Yahoo! subsidiary, Inktomi, for its
California Management Review – SAGE
Published: Apr 1, 2006
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