Raul Valdes-Perez

Is Enterprise Search Becoming a Commodity?

Since the introduction of the Google Mini and the IBM/Yahoo partnership in enterprise search, some have wondered whether enterprise search is becoming commodified, i.e., that crawling information and presenting search results in a reasonable ranked order is easy to do and is “good enough” for the enterprise.  Others dissent from this view, including enterprise search vendors themselves.

I’d like to analyze the issue by using the framework of Clayton Christensen’s wonderful books on technology strategy, a key insight from which is that technology becomes commodified only when its capabilities overshoot what customers need, or believe they need.

Two corollaries are that:

  1. A technology can’t be unilaterally commodified just because a vendor introduces a cheap low-end product.  Commodities are a function of technology and customer needs.  Only if you believe that a low-end product is “good enough” can a technology become commodified.
  2. Technologies can exit commodity status if customer needs, or their perception of their needs, change.  (Think of the evolution of cell phones and how often “good enough” became “outmoded” after new capabilities were invented.) So commodification isn’t a one-way dead end, but a two-way street.

I don’t think that the state of enterprise search technology has overshot corporate and government needs.  On the contrary, since it involves mission critical access to information and corporate productivity, there is no sign that information productivity has plateaued, and enterprise search in general isn’t “good enough” to sate customer appetities, with some exceptions.

One area where enterprise search is close to commodified is university web sites, where simple, “good enough” search is a significant improvement on previous, flawed or nonexistent search, and where the costs of mediocre (= good enough) search are so invisible that nobody cares much.  I predict, however, that enterprise search at university websites will decommodify when university executives understand that diffuse costs in productivity and external image are real costs even if they can’t be easily quantified or even noticed.  How long this special case of decommodification will take is anybody’s guess; several years, say.

Enterprise search in general isn’t good enough, anywhere.  Given its mission-critical nature, this will ensure non-commodity status well into the future.

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Discussion

  1. DomPierre wrote:

    I rarely use Google anymore except for when I need language translations. Vivi and Yahoo are my main go-tos these days.

    It’s interesting that IBM partnered up with Yahoo. They came to the party late and tried to launch their own back in the early 2000s. I know because I worked on it. They can never quite carry it off. They’ll always buy it or partner up. ;)

    So, is search becoming a commodity?

    Search 1.0 is the beginning. In the scheme of things, it’s basic. ask a question and get a set of results, sometimes what I want, sometimes not. Search 1.0 will become a commodity.

    Search 2.0 and Beyond will open up the Star Trek and Buck Rogers things we’ve all heard about. Verbally ask a computer a question, and it replies. Without a terribly long list of random findings. Personalized search based my own parameters. Beyond that, search ceases to be tied to a box or an object, and becomes something ubiquitous as a headset linked to computer somewhere and an ubiquitous interface that allows me to see results and touch or verbally select and go from there.

    So. No it will not be a commodity. It will continue to evolve in unexpected ways.

  2. DomPierre wrote:

    Afterall. This is the 21st century. ;)

  3. Shopautodotca Seocontest wrote:

    Nice observation in your article about Enterprise Search. Enterprise search later on will be a weapon of big Search Engines as a bait for patnership.

  4. Raya wrote:

    I agree with Shopautodotca Seocontest.

  5. Waleed wrote:

    No i dont think so, may be some day a new player will appear like exactly what Gogle did !!

  6. plastik wrote:

    With Google selling an Enterprise Search solution called the Google Mini and IBM and Yahoo partnered to deliver IBM Omnifind Yahoo. Edition is for free and it is not surprising that many believe Enterprise Search will be the next category of technology to become a commodity. Microsoft has announced that search is strategic to them and released a much improved version of it’s search technology in SharePoint. Search technology has evolved to the point were structured content from ERP, CRM, and custom applications can be indexed and searched as easily as document based content. By enabling employees to access this data through a simple search interface, a new level of productivity can be achieved. In my view this space is developing rapidly and is wide open. Search will become the intersection of Composite Applications, Business Intelligence, and Search itself. Commoditization isn’t even on the horizon.

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