Autonomy 'to consign search engines to bin'

By THIS IS MONEY
Updated: 18:00 EST, 27 March 2000

British software group Autonomy Corp launched a consumer product on 28 March which it said would consign Web search engines 'to the dustbin'. The Easdaq-quoted company, which a week ago unveiled plans to list on Nasdaq, said the new product, called Kenjin, should be a key driver for its core corporate business.

The software, available free on website www.kenjin.com from early on Friday, promises users at-a-glance background information, both from the Web and their own computers, as they prepare a document on a given theme.

'We think it's going to have a significant effect in driving our business forward,' CEO Mike Lynch told Reuters by telephone. 'It doesn't push loads of irrelevant rubbish,' he said.

With Kenjin, Autonomy uses a cut-down version of the 'intelligent' search functions that have made its name and tripled the value of its stock this year, by taking account of context, not just keywords, in searches.

'Search engines like Yahoo are consigned to the dustbin. Full stop. Like turning a light on,' Autonomy's public relations agents said in a briefing note on the product. Lynch said Kenjin can push related background or product information to the user's screen - whether that is a personal computer or a wireless Web device like a mobile phone. Users can adjust the amount of data they receive.

He said Autonomy was lining up major online partners, including household Internet names internationally, to help roll out the software.

While there is no charge to install or use the software, Autonomy expects to generate revenues through advertising and by picking up a portion of the electronic commerce it generates. 'This is a very neat way of just raising the bar (for recognition of Autonomy's products),' Lynch, whose firm's share price gains have made in a dollar billionaire, on paper at least, said. 'People have seen the technology we do and said 'why don't you come out with a consumer search engine?'

So far Autonomy had hesitated because of the frustrations inherent in many of technology's promises, he added. 'The (current) search engine's popularity bears no relationship to its accuracy,' he added.

Autonomy said on March 20 it planned a public share offering in the form of American depository shares (ADS) alongside its current listing on the Brussels-based Easdaq. Industry sources said that would raise about $100m. Its after-tax losses last year fell to £1.13m from £1.74m, on sales up over 200% to £16.51m. © Reuters