Google 'don't be evil' empire


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In his 2009 book Googled: The End of the World as We Know It, Ken Auletta recounts an illuminating episode in the history of the divisive web giant. Larry Page and Sergey Brin were graduate students when they developed their PageRank algorithm. Their search formula outperformed all competitors, reliably filtering out rubbish to deliver relevant information. At the time, however, its creators had PhD theses to write, so they decided to sell it.

Yahoo! was impressed by PageRank's efficiency. The trouble was that in Yahoo!'s business model, inefficiency was a feature, not a bug. The web portal sold advertising based on the number of pages its users looked at. By forcing them to click through screen after screen of semi-relevant search results, the company inflated its page-view count. PageRank would ruin that. Yahoo declined to buy, so Page and Brin pressed on alone. Now one doesn't hear much about Yahoo!.

At first sight, Google's market dominance appears to vindicate the "better mousetrap" theory of business growth. Why use another search engine when Google googles so well? And yet there's a growing consensus among technology observers that it doesn't google very well at all. The search engine has, in the words of the entrepreneur and academic Vivek Wadwha, "become a jungle: a tropical paradise for spammers and marketers". "Almost every search takes you to websites that want you to click on links that make them money," he complained on the blog Techcrunch, "or to sponsored sites that make Google money."

Last Thursday Google announced a technical tweak to address the first part of the problem. "This update is designed to reduce rankings for low-quality sites," it explained, singling out those pages which "copy content from other websites" or "are just not very useful". The move has been interpreted as an attempt to penalise outfits such as the Huffington Post, which rips material from other sources, and Demand Media, a battery farm for low-grade content. "Our goal is simple," said Google; "to give people the most relevant answers to their queries as quickly as possible."

Its goal isn't as simple as all that. Google's business depends on advertising. It fills its searches with sponsored links and links to its other services. Most of those services - YouTube, for instance - lose the company money. Their value is that they keep web-users on Google's turf, using Google's search engine, revealing their preferences and seeing Google's shrewdly personalised ads.

The strategy works. The company controls around 70 per cent of the global search market, giving it tremendous powers of patronage. This week the technology writer Andrew Keen became quite exercised about the way it uses its position to "cheat", edging rivals out of its search results and thereby extending its digital hegemony. He dismissed the most recent tweaks to the company's search algorithm as "cosmetic", insisting that "rather than spam, fairness is the key issue". Keen quoted a number of rival search companies, many of which are pursuing lawsuits against what they see as Google's monopolistic practices.

There are many reasons to be wary of Google. Its empire is far-reaching and powerful. Its motto may be "don't be evil", but its approach to user privacy comes uncomfortably close to what its CEO Eric Schmidt called the "creepy line". All the same, it's hard to see how anything could assure its preeminence except a superior product. Many web empires become more secure the larger they grow. Facebook, for example, can trade on the fact that more than half a billion people use it: what it sells is precisely a mediated connection between people. For the user of Google search, it doesn't matter how many other people are searching in the same way; all that matters is that they find what they want, quickly and painlessly. If Google forgets that, it invites a leaner, hungrier operation to come along with a better mousetrap. Something similar happened to Yahoo!, after all.

The specs: 2018 Mercedes-AMG C63 S Cabriolet

Price, base: Dh429,090

Engine 4.0-litre twin-turbo V8

Transmission Seven-speed automatic

Power 510hp @ 5,500rpm

Torque 700Nm @ 1,750rpm

Fuel economy, combined 9.2L / 100km

The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

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COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
Other workplace saving schemes
  • The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
  • Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
  • National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
  • In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
  • Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
The Sand Castle

Director: Matty Brown

Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea

Rating: 2.5/5

BANGLADESH SQUAD

Mashrafe Mortaza (captain), Tamim Iqbal, Liton Das, Soumya Sarkar, Mushfiqur Rahim (wicketkeeper), Mahmudullah, Shakib Al Hasan (vice captain), Mohammad Mithun, Sabbir Rahaman, Mosaddek Hossain, Mohammad Saifuddin, Mehidy Hasan Miraz, Rubel Hossain, Mustafizur Rahman, Abu Jayed (Reporting by Rohith Nair in Bengaluru Editing by Amlan Chakraborty)

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Results

5pm: Maiden (PA) Dh80,000 (Turf) 1,600m; Winner: Aahid Al Khalediah II, Pat Cosgrave (jockey), Helal Al Alawi (trainer)

5.30pm: Handicap (PA) Dh80,000 (T) 2,200m; Winner: Whistle, Harry Bentley, Abdallah Al Hammadi

6pm: Wathba Stallions Cup - Maiden (PA) Dh70,000 (T) 1,600m; Winner: Alsaied, Szczepan Mazur, Ibrahim Al Hadhrami

6.30pm: Emirates Fillies Classic – Prestige (PA) Dh100,000 (T) 1,600m; Winner: Mumayaza, Antonio Fresu, Eric Lemartinel

7pm: Emirates Colts Classic – Prestige (PA) Dh100,000 (T) 1,600m; Winner: Hameem, Adrie de Vries, Abdallah Al Hammadi

7.30pm: President’s Cup – Group 1 (PA) Dh2,500,000 (T) 2,200m; Winner: Somoud, Richard Mullen, Jean de Roualle

8pm: President’s Cup – Listed (TB) Dh380,000 (T) 1,400m; Winner: Medahim, Richard Mullen, Satish Seemar

The%20specs
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Neil Thomson – THE BIO

Family: I am happily married to my wife Liz and we have two children together.

Favourite music: Rock music. I started at a young age due to my father’s influence. He played in an Indian rock band The Flintstones who were once asked by Apple Records to fly over to England to perform there.

Favourite book: I constantly find myself reading The Bible.

Favourite film: The Greatest Showman.

Favourite holiday destination: I love visiting Melbourne as I have family there and it’s a wonderful place. New York at Christmas is also magical.

Favourite food: I went to boarding school so I like any cuisine really.