Stand-up comedians have a saying that "you're only as good as your last gig." The same goes for computer technology. What you have to assume is that someone somewhere has a business plan which involves, er, attracting all your customers.
To date, there are only two known defensive strategies. One consists of "locking in" said customers so that they have to be very determined to go elsewhere. This is the Microsoft Way. The other is to make your next product even more sensational than its predecessor.
To date, few companies have managed this trick.
The US$64 billion question at the moment is whether Google, the world's favorite search engine, will manage to pull it off.
Its spectacular success revealed that Internet searching is a very big business. Something like 550 million search requests are entered every day worldwide (245 million of them in the US and 77 percent through Google).
Google has shown that selling advertising based on searches can be very lucrative. And it is estimated by industry watchers that the annual paid-placement advertising revenue generated by Web searches will reach about US$7 billion by 2007 (as compared with US$3 billion last year).
If Google's current share of searching continues, that means the company could look forward to annual revenues of nearly US$5.5 billion in three years' time.
Ah, that magic word, "if"... The great thing about capitalism is that the prospect of annual revenues of US$5.5 billion tends to concentrate minds. So far, in relation to Google, those minds have been focused in two directions.
The first involves trying to get a slice of Google's action. The company is heading for a stock-market flotation this year and -- if industry rumors are to be believed -- this could be the biggest thing since Netscape went public on Aug. 9, 1995.
Netscape shares were conservatively priced at US$28, opened at US$71 and went as high as US$74 in the most frantic day's trading since the Wall Street crash.
Something similar could happen with Google. And this, in turn, might have wider implications, because it was the Netscape launch that triggered the technology boom/bubble.
It was what awakened non-techies to the notion that there might be money in that Internet thingummy.
Given that the stock market is slowly shaking off the rueful technophobia that has afflicted it since 2001, could Google's flotation triggers another avalanche?
The second direction in which search-related revenue concentrates minds leads to the quest for technology that is better than Google's.
A lot of brainpower is being focused on this question.
Some of us are old enough to remember when AltaVista was the best search engine there ever had been. Then one day Google was launched and we never used Alta-Vista again. But all that means is that Google is the new AltaVista, and the question is: what lies around the corner?
There's no doubt that Google represented a great advance. But there is no such thing as perfection in this business. Surveys indicate that almost a quarter of users don't find what they're looking for in the first set of links returned by a search engine.
That's partly because, in the words of MIT's Technology Review newsletter, "the precious needles of information we seek are buried under a haystack that grows by some 60 terabytes every day. [A terabyte is 1024 gigabytes.] And it's why fierce competition in the search industry is certain to continue, especially as companies implement a host of new technologies, such as natural-language processing and machine learning."
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