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Google cuts price on search hardware licenses

Web search leader Google revealed yesterday it has cut the price on licenses for its hardware that helps small and medium-sized businesses add search to their internal networks and public Websites.

The price of an entry-level license for the Google Search Appliance will fall to $30,000 from $32,000 and continue to include two years of customer support. That license, which is sold largely to medium-sized businesses, will allow users to search up to 500,000 documents, compared with 150,000 under prior terms.

The highest end license for the Google Search Appliance, a box containing both hardware and software, allows for the search of up to 15 million documents and costs significantly more.

The company also cut to $2,995 from $4,995 the license price on the Google Mini -- a search appliance for small businesses that was released in January. That license includes one year of support and allows holders to search up to 100,000 documents versus 50,000 documents previously.

Dave Girouard, general manager of Google's enterprise business, said the company has slightly cut costs and is squeezing margins on sales of the units without eliminating profits.

Google's "licensing and other revenues" accounted for roughly 1 percent of the company's 2004 revenue of $3.19 billion. The remainder of Google's revenue came from search-related advertising.

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