Search was the big Internet story of 2004 and it will continue to be so in 2005.

Google is everywhere. From its stock price explosiveness to its rapid rollout of new services, Google has grabbed the brass-news ring for the time being. However, the last story has not been written in the Great Search Race. We all know about Microsoft, but watch IBM and watch out for the next wave of Filos, Yangs, Brins and Paiges.

The real power of Search can been seen in the financial success of smaller players. Recently iProspect was acquired for $50 million by the UK based Aegis Group of advertising companies. Acquisition and consolidation will accelerate in the Search field. And look at the financial success of Russ Horowitz's public Marchex. Few know of Marchex, but its success illustrates that vertical opportunities abound in the Search arena. (Marchex is part of my stock portfolio.)

The other big story is the continuous onslaught of ecommerce companies gaining ground on traditional forms of retailing. Holiday online sales were up 28% this year over 2003 numbers whereas brick and mortar sales increased by only 4%.

The Internet had a great 2004. 2005 will be much better.