Google Apps: Microsoft Has Good Reason to Worry

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Includes: GOOG, MSFT
by: Yankee Group

By Carl Howe

Everyone and their brother is noting that Google (NASDAQ:GOOG) Apps Premiere Edition (lame name, by the way) is now openly attacking Microsoft's (NASDAQ:MSFT) Office franchise. We had predicted this day was coming last year in Microsoft's Current Situation: Like IBM in the '80s. But now, Google's "toys" are now Microsoft's competition, whether Redmond thinks they are or not.

One huge advantage Google has in this initiative is that its application package is a service over which it has complete, day-to-day control. With divisions of General Electric (NYSE:GE) and Proctor & Gamble (NYSE:PG) as its launch customers, Google should get lots of feedback for features and services that those business customers want. And unlike Microsoft, who has to wait through long deployment cycles for its installed software products, Google's software can be upgraded daily. The result? While Google Apps may not meet all the needs of businesses today, it could evolve to do so very quickly. Microsoft has good reason to worry.

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