Search Engine Marketing and Search Engine Positioning Newsletter, August 27, 2005 edition

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(Continued) The RFS Newsletter, August 27, 2005. Page 6
In news on Thursday, Media company Google wants to go further beyond its core competency, Internet search. The company is launching an instant messaging (IM) service and online voice calling service that will take it into greater competition with more established telecommunications companies around the world. It's new service, Google Talk, also marks an ambitious attempt to create an open platform on the web for voice calls and instant messaging, a move that could challenge the “closed” instant messaging networks run by rivals Yahoo, AOL and Microsoft’s MSN.

Last week’s announcement that Google planned to raise about $4 billion by selling shares fed speculation that it would use the cash to branch out into new services, perhaps by acquiring a company such as Skype, an early leader in internet telephony. The launch of its own service, announced on Wednesday appears to indicate instead that the company intends to build a network from the ground up, using a different approach to that taken by better-established rivals. Google took its first step into the communications business last year with the launch of Gmail although it has made no secret of its ambition to go further. Eric Schmidt, chief executive officer, has listed search and communications as the “killer applications” of the internet.

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