Google Enterprise

Posted: July 10, 2007 in Google

If you thought Google is an end consumer company, then you might be in a misconception. The tools that you have been using as an end consumer, are marketed actively by Google, to the enterprises. Google has been offering an array of its hosted services to Enterprises, Small Businesses, Schools and even to family groups.

The latest leap of Google into enterprise segment comes with the acquisition of a leading email security service provider, Postini. Google is planning to buy out Postini for $625 million. Postini will be a wholly owned subsidiary of Google.

Market experts considers Google’s bold move as an attempt to compete directly with Microsoft which had earlier acquired antispam companies like Sybari Software and Frontbridge Technologies. Rather last few years has seen a large number of acquisitions of email security companies by IT gaints.

  1. Microsoft acquired Sybari Software and Frontbridge Technologies.
  2. Symantec acquired Brightmail.
  3. McAfee  purchased  CipherTrust.
  4. Tumbleweed Communications owns Corvigo.

Postini’s hosted service business model is probably a major reason of Google’s interest in it. Software as hosted services has been a backbone of Google’s corporate business model.

The WallStreet gave a thumbs up to Google’s move. A blog on CNNMoney reports that “share prices gained more than 1 percent on early Monday morning. Google’s stock is now up nearly 20 percent this year and has surged more than 540 percent since the company’s initial public offering in August, 2004.”

A Zdnet story reports that Google apps has been adopted by more than 100,000 business to date, whereas has Postini currently caters to 35,000 business, with 10 million users worldwide.

The recent acquisitions that Google has made are

  1. Acquired leading online video  portal YouTube for $ 1. 7 billion last year.
  2. In April it announced that it will be purchasing DoubleClick, an online advertisement placement company for $3.1 billion.
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