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The Remunerative Powers of OO

From seed capital of ramen noodles and smarts, Google (NASDAQ: GOOG) now stands on the brink of world domination. How has Google done it? A lot of people think it’s because of their search engine technology, or their system for contextual advertising, or their collection of smarts, or their corporate ethos. But sometimes the answer is a pair of OO staring you right in the face. Google’s performance has been determined by the 2nd and 3rd letters in it’s name, the prominance and potency of its OO factor.

Let’s do a little history of the search engine space; first, coming out of the primordial ooze of the 80′s and 90′s there were many, mostly those who could barely walk (Altavista, AskJeeves, other crap) and amongst them, Yahoo (NASDAQ: YHOO) rose. And who could defeat the incumbent and its OO? Google, a company who knew that they couldn’t put the OO in the caboose. If they wanted to take down the champ, they had to knock him out. So they put the OO right in the middle and the rest is history.

Look at the social networking space. Friendster gave way to MySpace, a beast many thought to be unstoppable –> until Facebook rose to power. There have been hundreds of videosites, none that crushed the others, until a double dose of phonic OO from Youtube. Similar thing occurred with Bluetooth and wireless standards. And HD-DVD? Didn’t have a chance against Blu-Ray.

Why did Microsoft (NASDAQ: MSFT) pay so much for Yahoo in their contemplated acquisition? Clearly, the OO premium. There isn’t much of it out there, so when OO assets are available, they get bid up.

Recommendation: We chastise people who try and make things too simple, but in this case, it IS that simple. OO assets outperform OOless assets. Expect Web 2.0 to be surpassed by the Web 2.OO.

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