Internet Marketing Monitor
November 21, 2006
Filed Under (The Internet, Google) by Matt / Derick on 11-21-2006

If you're Microsoft you have to be wondering what Google has up its sleeve next.  What started as a search engine war has quickly turned into an all out assault on the desktop.  With Google Enterprise set to launch new services in 2007, Google finally thinks its ready to take on Microsoft, says Donna Bogatin for ZDNet.

Bogatin attended a Google meeting in New York during which members of its Enterprise team spoke to attendees about the future of, among other things, Google Apps for Enterprise.

The first thing that sets them apart from other Google offerings is the funding.  Unlike most current applications and services from Google, Enterprise Apps will not be free.  Companies wanting to harness the advanced features of Enterprise Apps will have to fork over some dough.  Not as much as they're used to paying the competition, Google promises… but money none the less.

Google's approach differs from Microsoft's in that Google Enterprise Apps are server-based programs that company employees access from a web browser.  Files are stored on the servers and are searchable using Google's famous technology.  Instead of countless copies of Microsoft Office to worry about, Enterprise Apps customers all access the same application at the same time.  Collaboration and file sharing/transfer are as effortless as clicking a button.

Will the move pay off for Google?  According to Bogatin's report, Google already has over 5000 Enterprise clients who are potential customers for the new Enterprise Apps service.  Depending on the price, Google might have a competitive product on their hands.

But is this a sign of things to come?  Is this just the first step in a pay-for Google world?  Bogatin isn't betting on it.  But could she be wrong?  Many were surprised with they started charging for access to the AdWords APIs.  Speculation abounds about possible courses for Google to take.  Some out of Google's hands.  Some not.  People have been talking for years about the possibility of a non-free Google.

Bogatin makes a good point, however.  The vast majority of Google's massive profits come from advertising.  If a system works, why mess with it?  Would fee-based services drive away enough users to throw the profit margin out of whack?  Would the fees be able to compensate for fewer users?  If a service isn't broken, should Google try to fix it?  I understand the need to fund enterprise solutions differently.  Companies probably don't want their employees clicking on ads and surfing the internet for fun on the clock anyway.  But it still makes you wonder.  If the fee-based structure works too well, could Google shift that way?

What do you think about pay-for Google services?  Would you pay a fee to use products from Google that are currently free?

 

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