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Analyst: Google uses Google Apps for Businesses in "asymmetric warfare" with Microsoft
Posted by Janet I. Tu
The New York Times has an interesting read looking at the decidedly mixed results of Google's attempts to get businesses to switch from using Microsoft Office to Google Apps for Businesses.
Some interesting points from the NYT article:
- David Girouard, who runs Google's Apps business, said 5,000 businesses a day signed up with Google Apps. But, the article notes, few big companies have done so.
- David M. Smith, an analyst with Gartner, estimates Google gets about $150 million a year from Apps -- not enough to cover costs, he says, though Google says it makes a profit, according to the article. Instead, Google "uses the business in 'asymmetric warfare' with Microsoft," the NYT reports. "'Google spends $1 to make Microsoft spend $10 defending itself, because Microsoft went after Google on search,' Mr. Smith said."
- Microsoft said Google's attempts are making little headway. "We sell a copy of Office 2010 every second -- over 100 million so far," Tom Rizzo, a senior director in the Office division, told the NYT.
Anyway, it's an interesting read as Microsoft's and Google's battles over everything from office apps to search to patents heat up. You can find the article here.
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