Google Caffeine is the name of the Google’s next algorithm update that is going live after the holidays. It seems that the Google Caffeine will be more than Google’s updates. It will probably be a major overhaul of the calculations that Google uses to rank the web pages.
What is going to change?
Google hasn’t revealed the details of Google Caffeine yet. However, the new index has been live on some text servers and some Google employees also talked about the next index. The following factors might be important:
•    Website Speed: if your website is slow in loading, then it might not come up in the ranking.
•    Broken Links: if your website is having many broken links then this might have a negative impact on the Google rank of a web page.
•    Bad Neighborhoods: linking to a known spammers and getting a lot of links from known spammers isn’t good for your rankings in Google’s current algorithm.
•    The over all quality of your website: this new algorithm will take a closer look at the over all quality of your website. It is not enough to have one or two ranking factors in your website.
You will probably need good optimized content, a good website design with a clear navigation, good inbound links, a low bounce rate etc. the number of social bookmarks might also play an important role.