The recent Google update known as the Panda was quoted by Google as targeting link farms and sites using doubtful linking tactics to gain top positions.  It was meant to only affect 10% of sites, but as with all updates from the mighty Google there were casualties on the way.

Certain legitimate sites such as Ezinearticles saw big overnight drops in positions and subsequent visitor numbers.  They have immediately made changes to their policies and will also be engaging with Google to have the update modified so it does not punish them.  The forums have been abuzz with businesses complaining that they have been harmed by the latest Google update.  

Linking has been a key component for years in Search Engine Marketing as an important indicator for Google to monitor popularity, credibility and relevance, among other things.  Whilst Google is modifying its algorithms and the emphasis it places on linking, it is not going to simply disregard the value of inward links or of sites that are receptacles of quality content.  The Panda update is a continuation of the evolution of the search engines to simultaneously keep up with online trends and technologies while also maintaining the integrity of search results.

As with previous Google updates they didn’t get it quite right first time.  When you consider the volume of content on the net its not surprising.  Google have already modified the Panda update and some sites are back where they were a couple of weeks ago.  The original intent of the update is still the same, and the evolution will continue, but as before Google has listened to the industry and reacted relatively quickly to correct itself.