Inktomi Revs Up Its Search Engine Technology

SAN FRANCISCO -- In an effort to maintain its edge in the crowded search-engine market, Inktomi (INKT Quote) unveiled Tuesday a search engine based on the company's new "concept induction" technology, which automates the task of compiling Web directories.

Inktomi declined to talk about specific revenue figures, but said it would charge a small per-search fee to sites using the search directory engine, as it has with its previous products. Analysts expect the new product will significantly add to the company's bottom line.

"It accelerates them ahead of the competition by a generation," says Martin Marshall, a director at Zona Research. "I would expect to see something on the order of a 25% [a year] increase in overall revenues."

Over the last few months, the search engine industry has grown increasingly competitive as new companies develop more sophisticated ways to connect people with content. In February, Direct Hit ousted Inktomi from Lycos' (LCOS Quote) HotBot site as its main search service. Inktomi's new technology and engine, coupled with AOL's selection on Monday of Inktomi as its search engine of choice for future products, suggests that Inktomi continues to find new ways to stay ahead of the pullulating pack. ...