Google Prepares to Launch Store for Online Business Software

Google Inc. is gearing up to unveil a new store for online business software, a move aimed at countering Microsoft Corp.'s dominance in the market. The new store will sell business software designed by outside developers, integrating with Google's Web services such as enhanced security features or the ability to import contacts. The store is expected to be a revamped version of Google's Solutions Marketplace site, which features third-party programs, and may be announced as soon as March. This move is part of Google's strategy to expand its online-software businesses and become a future sales engine for the company.

Key Takeaways:

Google is launching a store for online business software to counter Microsoft's dominance in the market.
The store will sell business software designed by outside developers, integrating with Google's Web services.
The store is expected to be a revamped version of Google's Solutions Marketplace site and may be announced as soon as March.
Google will allow users to purchase software from its partners through the store, taking a cut for itself and sharing some revenue with the developers.
The new store will help Google to jump-start the growth of its online-software businesses.
The approach has its risks, including potential customer-service complaints and unpredictable investment by developers.
Google sells a suite of software services to businesses for $50 a user per year.
More than two million businesses are using the paid or free version of Google Apps.

Statistics:

Around 500 million users of Microsoft Office (Microsoft)
More than two million businesses using the paid or free version of Google Apps (Google)
Google sells a suite of software services to businesses for $50 a user per year (Google)
Google hopes to become a future sales engine for the company as its advertising business matures (Google)

Sources:

Google (people briefed by the company)