Barron’s: Economies of Scale: The “Don’t Be Evil” Principle Permits Profits, Thomas Hazlett

Economies of Scale - Editorial Commentary - Thomas W. Hazlett - Barrons.com - Mozilla Firefox 3282012 115126 AM

Editorial Commentary By Thomas W. Hazlett | The “Don’t Be Evil” principle permits profits. It’s amazing what turns up when you Google almost anything — especially Google: The Internet application has become a corporation to be reckoned with. Founders Larry Page and Sergey Brin changed Web search by ranking pages according to their popularity, not just their textual relevance, and superior search was only a start. Scaling the technique to serve an enormous global audience would consume vast resources. Cataloging an ever-expanding Web would require massive personal-computer farms fed by transcontinental fiber. How would they pay for it — and maintain the reputation of their search results?  Go to full article at Barrons.com.   http://online.barrons.com/article/SB122670712156429867.html

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