All Contents © 2007 Burton Group. All rights reserved.

Burton Group Take 5!The Disrupter: Google Enterprise Apps Guy Creese, Senior Analyst, Collaboration and Content StrategiesMarch 19, 2007

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Google Apps, Premier Edition

• Rudimentary applications• Gmail, Google Talk [IM]• Google Calendar, Docs, and Spreadsheets• Page Creator and Start Page

• APIs• E.g., single sign-on, user provisioning, e-mail gateway support

• Online support documents and 24/7 phone support• Third party applications and services

• E.g., Postini for archiving, Sxip Identity for single sign-on

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Burton Group Take 5: The Disrupter: Google Enterprise Apps

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Pricing

• Pro• $50 per user annually• 17% of the Microsoft cost, if calculated at $300 per user annually

• Con• SaaS says the network is the computer; therefore, may have to pay for

employee Internet connections, at $480+ per worker per year• Can refuse to do so, at the risk of alienating employees

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Burton Group Take 5: The Disrupter: Google Enterprise Apps

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Software as a Service (SaaS)

• Pro• Pay as you go• Can treat it as an operating expense, rather than as an asset on the

balance sheet• A lot of IT infrastructure goes away (servers, installation coordination)

• Con• Must be connected to the Internet, so no offline support• Unlike SaaS apps such as Salesforce.com, employees won’t tolerate

downtime

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Burton Group Take 5: The Disrupter: Google Enterprise Apps

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Google and its culture

• Pro• Huge market cap• Can acquire technology and companies at will• Successful at selling the Google Search Appliance to enterprises

• Con• Web development comes first; the enterprise comes second• Enterprise Application division makes up 4% of the company• Follow through is poor• Partners characterize Google as “arrogant”

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Burton Group Take 5: The Disrupter: Google Enterprise Apps

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Segments users into two tiers

• Power users• The few: Spreadsheet jockeys and Word wizards

• Shallow users• The many: Use base functionality and no more

• Enterprises can better pay for what they use• Pressures Microsoft to price Office based on user type, rather

than suite component

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Burton Group Take 5: The Disrupter: Google Enterprise Apps

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Disrupts the market players and creates a startup lottery

• IBM: Must look for a SaaS partner: Google or Yahoo!• Microsoft: Attacks the Microsoft installed base and

accelerates Redmond’s stimulus/response• Oracle: Huh? Who? Lost amidst the noise• Startups: Coding the next Google App as an exit strategy

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Burton Group Take 5: The Disrupter: Google Enterprise Apps

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Playing for keeps: the datacenter arms race

Burton Group Take 5: The Disrupter: Google Enterprise Apps

Source: The New York Times

Source: Microsoft Corporation

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