Google cuts price of Mini machine
Source: - Seattlepi.com
Google Inc. cut the price by 40 percent and doubled the capacity of the computers it sells to small- and medium-sized businesses for searching their internal networks and the Web.
The company dropped the cost of the Google Mini to $2,995 from $4,995 and boosted its search capability to 100,000 documents, according to a statement yesterday. For larger clients, the computers' price fell to $30,000 from $32,000 and capacity tripled to 500,000 documents, Google said.
Google, based in Mountain View, Calif., sells hardware loaded with its search technology to customers who plug it into their own computer networks. The company brought in 1.4 percent of its revenue last year from licensing search technology.
"We're still maintaining profitability on the product," despite the price cut, said Matthew Glotzbach, a product manager in Google's enterprise unit. Google uses the same technology in its own data centers and gets discounts because of the large number of computers it buys, he said.
Google's licensing and other revenue rose 1.5 percent to $45.9 million in 2004, according to regulatory filings. Advertising accounts for the rest of the firm's revenue and last year totaled $3.14 billion.
Glotzbach said the enterprise unit now has more than 1,000 clients, more than twice as many as a year ago. "The price change isn't in response to trying to jump-start the business in any way," he said. "We're growing extremely well."
Companies also have the option of adding Google's search technology to their Web sites free by using the Internet, although Glotzbach said Google hardware offers the advantage of no advertising alongside search results and more control over content.