Well as most people have heard by now Google has launched a premium service targeted at small and medium size business. This is the key difference between the all out war some are calling this w/ Microsoft Outlook. Microsoft has the medium to large size business's locked up.
Google is very smart in their approach going after the long tail..a place where most of their ad revenue comes from almost $1 billion a quarter. Here is a qoute from Eric Schmidt “The surprising thing about The Long Tail is just how long the tail is, and how many businesses haven’t been served by traditional advertising sales,”.
Most small business crave a simplified office environment. Gmail is simple to use and makes life easier. Docs and Spreadsheets on the other hand is a little rough around the edges but I have a feeling enhancements will be made available quickly.
I am surprised what hasn't been talked about more is the non integration of Jotspot's Wiki tools. This is a great set of tools for a small or med. biz as a virtual intranet for resources etc.. I also expect a rumored Power Point clone very soon as well which would give Google Apps a very powerful set of tools to really take it to the next level. Now this Premium package would be very attractive to larger business's.
I think that Google is counting on people who don't want to upgrade to Vista/Office 07 but see it as inevitable as an alternative solution. Could Google really be positioning itself better than we think w/ Google Apps?
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