With the launching of Google Apps Premium, Google declares a war on Microsoft. Office automation was until then the kept hunting of Microsoft but it was without counting on the appetites of power of Google. Let’s return on this economical warfare between the giant of the Web and the giant of software...
Google is tageting the Microsoft’s customers:
The advertisement made a bomb effect : for the first time, Google attack directly the Microsoft empire. Objective: to seduce SME with a turn-key solution. The target is exactly the same one as that of the sworn enemy Microsoft.
Since last year, Google already proposed various collaboratives solutions on line but the firm has this time decided to join together its various applications in a pack and to propose it to companies. Cost of the solution: 50$ per annum and by user. For the occasion, Google thus modified its business model by proposing for the first time a paying solution.
The applications already suggested in the free version of Google Apps are:
* Gmail : Google webmail
* Google calendar : diary
* Google Talk : system of voice on IP
* Google Docs & Spreadsheets
* Google Creator Page : development tool of Web sites
The paying version offers the following advantages (see article of GNT):
* Space storage by user of 10 Go against 2 Go for the free version
* the API which allow companies to integrate the Google applications in their information systems
* An hotline 24h/24 and 7j/7
Google says the free version has already seduced 100 000 customers among whom General Electrics, Procter & Gamble, Médiamétrie, Essilor, the hospital of San Francisco... the goal for Google is to convince them to adopt to the paying solution. The first user of Google Apps being of course Google itself and its 10 000 employees.
Frontal competition with Live Office:
Last November, Google had already cheek Microsoft by announcing 24 hours before the launching of Office Live its solution then baptized "Google Apps for your domain".
Google has 2 strong arguments to grant the market controlled by Microsoft: the price first of all because the licence of Office Live premium cost 40$ per month and per user whereas Google Apps costs only 50$ per annum. In addition, the software suggested by Google is collaborative, each member can modify the working papers.
Google also counts on the ease of use by hosting the solution and carrying the maintenance out. Unknown factor: will the companies be ready to store significant data on the host of Google?
One can also envisage a nearest integration of wikis for companies (thanks to the acquisition of Jotspot) and of a software of presentation like Power Point (see article on Presently)
Google and Mircosoft: opposite strategic models
Microsoft is software's leader and doesn’t hope to migrate towards "whole Internet". As opposed to what one could think, Office Live isn't an on line version of the office soft but simply a pack all in one bound for SME.
Microsoft’s success is due to its operating system and to the interworking of terminals (PC, mobile, console...). Microsoft thus carries out a strategy in order to impose on each terminal the use of a single OS: Windows!
Google rely on the “whole Internet”. The firm wants to reduce the importance of PC to provide on the Web services covering the functionalities offered by Microsoft. The interest of Google is to develop the Web access and the small terminals.
Google recommends a system without hard disk where all the data and applications would be accessible on line thanks to any terminal.
This is why the negotiations with the mobile operators are so strategic and are subjected to plays of influence.
The fact that Google provides for free the wi-fi to San Francisco is perfectly in phase with the objectives of the firm. The providers have fully their role to play in this war for the leadership of data processing and Internet. And the latter are for the supporting Microsoft.
In many ways, Google is in competition with providers: it’s the case for example with YouTube and Google Video, direct competitor of the VOD systems.
In the same way, the payment system, Google Checkout, doesn’t delight providers. However Microsoft negotiates with providers while collaborating on software development. That’s why Google could become a provider in order to defend its own interests.
An indirect strategy of destabilization?
11 billion dollars! It's the revenues of Microsoft thanks to the Office software. More than the turnover of Google in 2006! In addition of developing its incomes, Google perhaps seeks to destabilize Microsoft to increase its control of the Web.
By frontally attacking Microsoft on its ground of predilection, there is no doubt that Bill and its assistants will have to spend money on a sector which they thought acquired. They will be diverted of the Live Search development, principal threat for Google. One of the tactics of Google could consist to make diversion to crush Live Search.
In the history of Microsoft, Google is the most serious competitor. With 150 billion dollars of capitalization, more than 10 millions of treasury and thanks to its Web influence, Google is the only actor able to hustle Microsoft.
The two entities affirmed hitherto that their skills weren’t in direct competition. But Google made an other decision by taking the offensive.
It was inevitable that a war bursts between the two giants, and it’s difficult to say which one will win!
Business to be followed...
Google is tageting the Microsoft’s customers:
The advertisement made a bomb effect : for the first time, Google attack directly the Microsoft empire. Objective: to seduce SME with a turn-key solution. The target is exactly the same one as that of the sworn enemy Microsoft.
Since last year, Google already proposed various collaboratives solutions on line but the firm has this time decided to join together its various applications in a pack and to propose it to companies. Cost of the solution: 50$ per annum and by user. For the occasion, Google thus modified its business model by proposing for the first time a paying solution.
The applications already suggested in the free version of Google Apps are:
* Gmail : Google webmail
* Google calendar : diary
* Google Talk : system of voice on IP
* Google Docs & Spreadsheets
* Google Creator Page : development tool of Web sites
The paying version offers the following advantages (see article of GNT):
* Space storage by user of 10 Go against 2 Go for the free version
* the API which allow companies to integrate the Google applications in their information systems
* An hotline 24h/24 and 7j/7
Google says the free version has already seduced 100 000 customers among whom General Electrics, Procter & Gamble, Médiamétrie, Essilor, the hospital of San Francisco... the goal for Google is to convince them to adopt to the paying solution. The first user of Google Apps being of course Google itself and its 10 000 employees.
Frontal competition with Live Office:
Last November, Google had already cheek Microsoft by announcing 24 hours before the launching of Office Live its solution then baptized "Google Apps for your domain".
Google has 2 strong arguments to grant the market controlled by Microsoft: the price first of all because the licence of Office Live premium cost 40$ per month and per user whereas Google Apps costs only 50$ per annum. In addition, the software suggested by Google is collaborative, each member can modify the working papers.
Google also counts on the ease of use by hosting the solution and carrying the maintenance out. Unknown factor: will the companies be ready to store significant data on the host of Google?
One can also envisage a nearest integration of wikis for companies (thanks to the acquisition of Jotspot) and of a software of presentation like Power Point (see article on Presently)
Google and Mircosoft: opposite strategic models
Microsoft is software's leader and doesn’t hope to migrate towards "whole Internet". As opposed to what one could think, Office Live isn't an on line version of the office soft but simply a pack all in one bound for SME.
Microsoft’s success is due to its operating system and to the interworking of terminals (PC, mobile, console...). Microsoft thus carries out a strategy in order to impose on each terminal the use of a single OS: Windows!
Google rely on the “whole Internet”. The firm wants to reduce the importance of PC to provide on the Web services covering the functionalities offered by Microsoft. The interest of Google is to develop the Web access and the small terminals.
Google recommends a system without hard disk where all the data and applications would be accessible on line thanks to any terminal.
This is why the negotiations with the mobile operators are so strategic and are subjected to plays of influence.
The fact that Google provides for free the wi-fi to San Francisco is perfectly in phase with the objectives of the firm. The providers have fully their role to play in this war for the leadership of data processing and Internet. And the latter are for the supporting Microsoft.
In many ways, Google is in competition with providers: it’s the case for example with YouTube and Google Video, direct competitor of the VOD systems.
In the same way, the payment system, Google Checkout, doesn’t delight providers. However Microsoft negotiates with providers while collaborating on software development. That’s why Google could become a provider in order to defend its own interests.
An indirect strategy of destabilization?
11 billion dollars! It's the revenues of Microsoft thanks to the Office software. More than the turnover of Google in 2006! In addition of developing its incomes, Google perhaps seeks to destabilize Microsoft to increase its control of the Web.
By frontally attacking Microsoft on its ground of predilection, there is no doubt that Bill and its assistants will have to spend money on a sector which they thought acquired. They will be diverted of the Live Search development, principal threat for Google. One of the tactics of Google could consist to make diversion to crush Live Search.
In the history of Microsoft, Google is the most serious competitor. With 150 billion dollars of capitalization, more than 10 millions of treasury and thanks to its Web influence, Google is the only actor able to hustle Microsoft.
The two entities affirmed hitherto that their skills weren’t in direct competition. But Google made an other decision by taking the offensive.
It was inevitable that a war bursts between the two giants, and it’s difficult to say which one will win!
Business to be followed...
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