Analysis: Salesforce's Addition of Google Apps Shows Google's Intent to Enter Business Software Market
By tapping into Salesforce's customer base and latching on to that company's reputation as a trusted corporate technology provider, Google can make inroads in selling its software to businesses.
Though Google has pointed to a massive adoption of Google Apps as an indicator that it has enjoyed inroads in the corporate space, including its offering of a premier edition for business that companies can buy for $50 per user per year, it has had difficulty winning the trust of companies and their IT departments.
According to Wettemann of Nucleus Research, prospective customers have contended it's too risky to store data offsite and have complained Google Apps lacks the rich functionality (and the ability to work offline) that Office has. "I've heard people say Google needs to prove they can trust them," she says.
Recent research supports her conclusion. In CIO's annual consumer technology survey of 311 IT decision makers, more than 50 percent of the respondents said they would not even consider using Google Apps or Gmail, Google's e-mail system, at their companies. Of the reasons cited, security was checked off as the highest concern. (See CIOs Still Fear Web 2.0 for the Enterprise).
But Google has taken several steps during the past year to address those concerns through acquisitions, partnerships, and improvements to the Google Apps software suite. Last July, Google acquired Postini, which provides security around corporate e-mail. A few months later, the consulting firm Capgemini announced it would offer support to businesses that wanted to use Google Apps.
Google added a presentation software after being criticized for not having an alternative to Microsoft PowerPoint. In addition, Google recently made it possible for people to take documents and spreadsheets offline.
"Google is trying to show that Google Apps is a viable alternative [to Office] in the business environment," says Jeffrey Kaplan, managing director of Thinkstrategies, a consulting firm that advises companies on how to use Web-based software. "Salesforce, meanwhile, wants to include as many productivity tools as possible to make its primary product easier to use."
It's There and It's Free, But Will Salesforce Customers Use It?
Should Salesforce.com customers want to try Google Apps today, they can have several features added immediately, including Google Talk (instant messaging software), documents and spreadsheets (think: Google's version of Microsoft Word and Excel), Gmail, and Google calendar, all for no extra money.
In the summer, Salesforce.com will begin offering the premier version of Google Apps, which includes technical support. The premier version has been designed as more enterprise-friendly, and also includes a wiki that allows people to build corporate intranets and microsites for their departments to collaborate on key projects with no programming experience.
