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Google Apps Premier Edition Launches, Widely Used

Tookis writes "Google's online productivity suite (Google Apps) has already replaced Microsoft products at more than 100,000 small to medium enterprises. Additionally, it's been deployed for serious work-related projects at two of the largest companies in the world. Product manager for Google Enterprise Kevin Gough was quick to point out that although the premier edition of Google Apps only just launched, it's already been adopted by companies like GE, Procter & Gamble, Prudential and Loreal. He goes on to describe the role of Apps: to augment, not necessarily replace existing IT solutions. Just the same, he says, the role of Apps can be powerful where traditional services may be too expensive. Says Gough, 'There's a large segment that's under-served by today's productivity tools. Production workers and retail employees for instance. 48% of all employees actually don't even have an email address. That's because the cost of hardware, software and maintenance has made it prohibitively expensive to provide email to employees.'"

30 of 266 comments (clear)

  1. really? by um...+Lucas · · Score: 4, Insightful

    Somehow, I'm having issue believing that number. 100,000? Maybe 100,000 companies have users that are using gmail accounts, but I just don't buy that 100,000 real businesses have switched over already, unless Jim-bob in his basement counts as a business...

    1. Re:really? by geoffspear · · Score: 2, Insightful

      I seriously doubt any company trying this as a free trial has "completly replaced" MS products with Google Apps.

      In fact, if their product manager is this delusional, I'm seriously reconsidering my optimism about these apps every being improved enough to completely replace MS Office. We can only hope he's replaced with someone good when he's inevitably institutionalized.

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    2. Re:really? by Timesprout · · Score: 4, Insightful

      Any company prepared to trust the bulk of their communication and data to a third party with those terms of service is nuts anyway. Everybody seems to be overlooking the 'we can rip this service out from under you at anytime we feel like it' and the 'we can impose arbitrary restrictions on your use at anytime we choose'.

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    3. Re:really? by kripkenstein · · Score: 3, Insightful

      Everybody seems to be overlooking the 'we can rip this service out from under you at anytime we feel like it' and the 'we can impose arbitrary restrictions on your use at anytime we choose'.
      Actually the same goes for people using MS Office. Microsoft can decide not to patch some flaw that essentially makes MS Office unusable for certain people (due to security reasons, for example). Microsoft can also raise the prices for updates to where it isn't cost-effective for many of their clients. They can 'push' updates that reduce functionality. In theory.

      In practice, both Google and Microsoft won't do such things, because (1) 'ripping the service out from under clients' (as you well put it) just isn't good business, and (2) contracts. A contract with Google will ensure a certain service for some-odd years, just like a contract with Microsoft. No more, and no less.

      However, you are 100% right about both of them - even if it is unlikely that these doomsday scenarios occur, they are possible. Entrusting your IT over to Google (by hosting it on their servers) or to Microsoft (by running their closed-source programs, and in addition being locked-in to them) is somewhat a 'leap of faith'. For those that value their personal autonomy, there are really only two options: in-house development, which is completely impractical for 99% of organizations, or using open-source software (as people reading this know already).

      Yet, the Microsoft and Google solutions will, I predict, continue to draw the vast majority of businesses: Microsoft are already entrenched, and Google are so ridiculously cheap it seems a crime not to use their service.
    4. Re:really? by Timesprout · · Score: 3, Insightful

      Lol. Microsoft has been doing it and is still doing it for years. People don't stop using Microsoft products do the
      I knew someone would come up with this. The difference is, and its a massive difference is that Google can deny you access to your data at any time they choose. With MS you still have physical access to your files, free viewers and converters, Open Office.org etc to access the information contained within so while incovenienced you can still carry on your business. Google shutting out your account leaves you with nothing.
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  2. B$ by teknopurge · · Score: 1, Insightful

    I call bullshit on the 100,000 number. This has mediaHypeFUD written all over it.

    GE, a government contractor, will not allow a 3rd-party to have any sort of access to project documentation. Neither will GM, BoA, or the rest of the fortune 1000.

    Google apps has its place, but it is not in any "enterprise" i've ever worked in.

    1. Re:B$ by Like2Byte · · Score: 2, Insightful

      I think the GP is suggesting that companies that have sensitive data (whether to the companies bottom line or some secret formula) are not quickly going to float their data over the internet and hope that some other entity is going to treat that data as sensitive as in-house employees would. Data needs to be controlled AND managed. Some companies are going to be more restrictive with their data warehousing than others.

      I seriously doubt pharmacological, banking, automotive, airline-manufacturing (whether civilian or defense) companies are going to put any data into a server that they do not directly have control over.

      The reasons why are as varied as the industry, too. Criminal hacking aside, what if some power or cable company cuts the hard line, through accident or whatever, and the company can't retrieve their data? I'm sure you'd know right away about a more than a few IT job opportunities right away.

  3. O RLY? by beavis88 · · Score: 3, Insightful

    Production workers and retail employees for instance. 48% of all employees actually don't even have an email address. That's because the cost of hardware, software and maintenance has made it prohibitively expensive to provide email to employees.

    Or maybe, just maybe, 48% of all employees don't need email to get their jobs done. I know, it sounds heretical, but let's be honest, does K-Fed really need email to operate that McDonald's cash register? Nah, I didn't think so either.

  4. Retail Employees with Email? by Paulrothrock · · Score: 2, Insightful

    Why would you want your retail employees to have email? Is it really necessary for the cashier at Wal*Mart to have their own email address when they're probably only going to work there for a few months?

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  5. Security breach coming to a company near you! by Anonymous Coward · · Score: 2, Insightful

    Can't wait to see what happens when the 1st security breach happens and companies that THOUGHT they were storing their documents online safely, actually find their documents floating across the internet. Will kind of put a damper on this whole online storage thing. Think hackers aren't gonna sink their teeth into this????

    Bottom line, real companies don't want their confidential documents floating around willy-nilly in the "cloud". And to have 2 systems (one desktop based for confidential, and "cloud" based for non-confidential) is just too much hastle to have to remember and maintain.

  6. Re:open source + web services vice by 140Mandak262Jamuna · · Score: 3, Insightful
    Microsoft is not going supernova. Not in 5 years not in 10 years.

    Let us take for example the vendor lock and switching costs. You can get decent oil change for your car for 20$. 10$ if you really clip coupons and are willing to let Joe's QuickLube to do it. And most car dealers charge 30$ for the very same service. Still there are millions of car owners who would happily pay 30$ to the dealer willingly.

    Now take a look at how difficult it is to use a competing product instead of Microsoft. The switching costs are high and there is very heavy vendor lock. In 5 years, the marketplace might become more level. Finally the corporations might start demanding true interoperability. MS might lose market share. From 90% share in Office and 80-85% share in browsers and 95% share in computers, it might go down. How low will it go, I cant guess. May be to 50%. May be to 33%. The profitability also might suffer. But after all is said and done, MS will still have decent market share and a decent profit making business. Look around, IBM is still around, isn't it? It was the IBM dinosaur around which nimble Microsoft ran circles around. 10 years from now there will be three dinosaurs, IBM, MSFT and GOOG. And there will be another nimble player.

    --
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  7. It replaces POP3 accounts, not Microsoft Office by dybdahl · · Score: 4, Insightful

    I'm employed in a company that switched to Google Apps for Domains, and it works great. But it replaces our old e-mail service.

    The calendar part is getting better and better, especially the arrival of syncmycal has improved integration with MS Outlook, but it surely doesn't replace it, yet, because Google Calendar cannot sync with everything, yet.

    We're looking forward to use docs and spreadsheets, but it's still just an add-on to our existing in-house software.

  8. Re:Return of the terminal by BrittanyGites · · Score: 2, Insightful

    It would be great if the terminal was just a browser, but to all intents and purposes you need a PC, running an OS to get a browser. That surely is a large part of the cost/management/security overhead. If we could have a 'hardware' browser only terminal then we are back to client/server. But wait a minute didn't Sun and to a lesser extend DEC with the VT1000 try this before ?

    --
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  9. Lies and damned statistics by SuperBanana · · Score: 1, Insightful

    Google's online productivity suite (Google Apps) has already replaced Microsoft products at more than 100,000 small to medium enterprises.

    Uh, replaced? I seriously doubt that 100,000 companies are now exclusively using Google Apps. I seriously doubt that 100,000 companies even deployed Google Apps company-wide. I'd be astounded if that statistic was anything more than someone looking at the weblogs for Google Apps, seeing 100,000 unique .com domains, and concluding they had 100,000 companies using their product. It's probably one or two people at each company, logging in from work to their gmail account, and working on their resume in Google Apps.

    Check out this cheesy bit of spin:

    Additionally, it's been deployed for serious work-related projects at two of the largest companies in the world.

    That's a relief. The industry was worried it was being used for managing the office football pool.

  10. Re:No real threat by shudde · · Score: 2, Insightful

    You Linux freaks can foam at the mouth trying to convince anyone that Linux + open office will be widely adopted by corporates. People that actually work in corporates and support infrastructure, will never let that amateur junk in.

    Some of us linux freaks don't care whether corporates adopt it or not. I'm a little curious about the source of your hostility though.. what did oss do to get your panties in such a bunch?

  11. Re:bullshit or not by SuperBanana · · Score: 2, Insightful

    Google Apps seems like a really great idea for Universities. We spend SO much money on MS Office and related products.

    Umm...why didn't you install OpenOffice?

  12. Re:Skeptical by fangorious · · Score: 3, Insightful

    This service has been available (in beta, for free) for probably a year now, so [Google] aren't claiming that 100, 000 companies switched in a day.

  13. Re:No real threat by UtucXul · · Score: 4, Insightful

    You Linux freaks can foam at the mouth trying to convince anyone that Linux + open office will be widely adopted by corporates. People that actually work in corporates and support infrastructure, will never let that amateur junk in.
    But they have no problem with the professional junk that Microsoft puts out, right?

    I use LaTeX for pretty much all my document needs so I don't have a real vested interest in OpenOffice.org vs. MS Office, but it really isn't fair to call OO amateur. It did start life as a commerical product. And is the opposite of commercial really amateur? gcc is not a commercial compiler, but it certainly not amateur and has been used in lots of serious situations.
  14. Re:Return of the terminal by BuR4N · · Score: 2, Insightful

    Sadly, not much have happned on the usability front comparing the average form based input page and the 3270 terminal system anon. 1972. Chances are that people is going to be fed up with subpar performacne and cluncky interfaces and head back to the "fat client".

    --
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  15. Re:bullshit or not by 99BottlesOfBeerInMyF · · Score: 2, Insightful

    Dear school guy, Use Openoffice. It's free. Run it on top of GNU/Linux. It's also free.

    Dear Clueless,

    How much does it cost for direct telephone support for all those OpenOffice users? How much does it cost to run e-mail servers for them? How much does it cost for disk space and maintaining redundant backups of the disk? How much does it cost to administer the calendar, e-mail, IM, file, and backup servers? How many students are willing to wipe their macs in order to install Linux and get a reasonable version of OpenOffice? Who will be providing support for the installation of OpenOffice on all those home machines as well as providing a mechanism for transporting the user's files between the two systems and keeping them synched?

    Get a fucking clue.

    Aside from learning some basic courtesy, make you should learn to think through what all is being provided by Google here and how hard it would actually be to replicate all that functionality in a university setting. There are a lot of cases where OpenOffice is a much, much better solution than Google Docs. At our business, for example, we would not let our documents and communication all run, unencrypted to a third party. We would not relinquish so much control of the functions handled by our servers. For the education sector, however, Google seems to be offering a lot of real advantages over OpenOffice at this time.

  16. Re:Replacement vrs. Inroads. by um...+Lucas · · Score: 3, Insightful

    Half of all employees don't have email? I'm thinking if they've made it this far along without it, they probably don't need it...

    Does the checkout girl at the grocery store need email?
    How about the house painter?
    Or the guy that tears tickets in half at the movie theater?

    Is that the target market? I'm sure Microsoft is quaking in their boots about the prospect that they missed out on getting McDonalds to shell out for Exchange licenses for all their employees... :)

  17. My first spreadsheet on Google.. by KeepQuiet · · Score: 2, Insightful

    I used it first time and you can't even plot a graph. Why would someone use this?

  18. Re:Return of the terminal by ClosedSource · · Score: 2, Insightful

    "Browser based stuff looks good in comparison to what's generally available for Windows so people assume it is a step forward instead of the step sideways that it appears to be to me."

    Browser apps look better than most Windows apps? What are you smoking? X applications are hardly the benchmark for GUI quality either.

  19. Re:Return of the terminal by bigwave111 · · Score: 2, Insightful

    A shame for whom? Ease of use to lessen training costs, simplicity without needing specified hardware, and a vast majority of workers whose interfacing with a computer consists of MySpace, Email, and chat. Technologically it could be considered a step sideways, but so was the Wii. It's all about user interactivity.

  20. complete and absolute BS (SOX) by saleenS281 · · Score: 3, Insightful

    it's complete and absolute BS for one reason only: SOX compliance. Anyone running their business off of google apps is just begging to be run out of business by the government. There is absolutely no way, with the way google runs their apps, that you could ever meet security or retention requirements for SOX compliance.

    1. Re:complete and absolute BS (SOX) by lushmore · · Score: 3, Insightful

      This isn't a problem because

      1. Small businesses don't care about SOX.

      2. Google will beef up the service to meet the needs of publicly traded companies, thus making the Google option so much cheaper than managing the IT part of SOX compliance on your own that companies will have no choice but to use a hosted service.

      3. SOX is going away because it blows and it's driving companies away from our stock markets.

  21. Re:Not at P&G by dave562 · · Score: 3, Insightful
    The amount of spreadsheets that would have to be converted would be impossible to fix ...

    This is exactly the point I was trying to allude to in an earlier post I made when I mentioned Excel's formula language. In any large enough organization, there is likely enough business intelligence coded into Excel spreadsheets by people who no longer work there that trying to convert all of it onto another platform would be ridiculous.

    I've seen the argument that a spreadsheet is a spreadsheet, and if you're starting from scratch, I think that is true. But a Google spreadsheet is not the same as a 20 page, fully formulated, linked to external datasources (via ODBC, SQL on the backend anyone?) Excel monster. And speaking of which, what do you do if you're using Google apps and you want to link to external data in say, an SQL server? Excel has great built in wizards that will link to just about any data source imaginable. Is Google going to port all of my financial data over there for me so that I can "access it from anywhere?"

  22. Re:Return of the terminal by timeOday · · Score: 2, Insightful

    for example, X11 - it could be improved, but at least it was designed with network transparent applications in mind
    X11 is a complete failure over the Internet. It's not just securing the protocol, that could be layered on. The problem is deeper; X11 is overly synchronized. Try running a web browser across the Internet using X. It's unusable. The first time you get an animated banner, it stalls, uploading every frame in full. Now try VNC (or even Remote Desktop on Windows), it works fine. You only see every 20th frame of the animation (in fact only fragments of frames) because it doesn't enforce synchronization. But the result is the app is usable.
  23. Re:No real threat by Compholio · · Score: 3, Insightful

    LaTeX ? Yes, very widely used, indeed (sarcasm)
    Try submitting to a scientific journal without it, or try writing a textbook (you ever wonder why they all look the same?), and you'll get back a list of organizations that you can pay to TeX your document for you. Since LaTeX easily outputs to PostScript and PDF it's also very easy to hand off your document to people that don't understand TeX.
  24. Sorry dude, you're misinformed by Optic7 · · Score: 3, Insightful
    1. Only publicly traded companies have to comply with SOX. I don't think the situation you described has anything to do with SOX.

    2. I can see your point that Google apps may not be compatible with SOX, but this would matter only to publicly traded companies.

    3. You haven't been paying attention to the news. I've seen multiple stories about SOX causing many small publicly traded companies to delist from the stock market and go private, and how it's causing businesses to skip the US stock markets when it comes time for them to do their IPO. In other words, yes, there's a general feeling that SOX is driving business away from the US. Here's an example article I found through a very quick search: Is SOX Driving Small Companies Overseas?

    SOX seems to be too onerous on most companies, and only the largest ones can properly put up the effort to meet its requirements. I'm not an expert, so I'm going by what I've read and heard on the news, and by the huge amount of IT changes that SOX has caused at my work. I'm as anti-corporate as they come, and I can see that SOX is having some negative effects. I think he's right that something is going to change.