Google Expands Cloud-Based Services to Challenge Microsoft, IBM

Strategic Insights -

Google's online office software has more than 2 million businesses using its cloud-based services, and the company is now launching a global advertising campaign to attract customers from Microsoft and IBM. The campaign, which starts Monday in several countries, marks a rare foray by Google into mass-market advertising and highlights increasing competition in the market for enterprise email and office software.

Key Takeaways:

  • Google's online office software has seen a significant increase in adoption, with over 2 million businesses using its cloud-based services.
  • The company is launching a global advertising campaign to attract customers from Microsoft and IBM, targeting businesses with email and other office software.
  • Google's cloud-based services can provide cost and maintenance savings over traditional software, but recent high-profile outages have raised questions about the reliability of online software for business users.
  • Gartner analyst Tom Austin predicts that most businesses will eventually switch to cloud-based email, but the process may take years.
  • Google's Apps business is a profitable part of the company, generating hundreds of millions of dollars in revenue per year.
  • The company's Apps team has doubled in size over the past year, with over 1,000 employees.
  • Google's marketing campaign will feature ads in notable publications, including The New York Times, Forbes, and The Economist, as well as on billboards at airports and train stations.
  • The creative part of the campaign was designed in-house by Google's Creative Lab team.

Statistics:

  • Over 2 million businesses use Google's cloud-based services, up from 1.75 million in June.
  • Google's Apps business generates hundreds of millions of dollars in revenue per year.
  • The company's Apps team has doubled in size over the past year, with over 1,000 employees.
  • 20 million active users of Google Apps, up from 15 million in June.
  • 1 Google Apps user for every 10 Google users.

Sources:

  • Reuters
  • Gartner
  • Google (via Muscat Press and Publishing House SAOC 2009)