There is a lot of hype surrounding the recent launch of Google Apps Premier edition launch. We love a good story and what’s more compelling than the classic David vs. Goliath tale. Unfortunately, this is going to turn out be a non-story for those really paying attention.
MS Office and Google Apps compete in two highly distinct market segments. MS realm is the large corporations with highly standardized systems, Google’s niche has been the individual consumers, who until recently didn’t have a viable alternative to the MS Office. On the flip side, Google doesn’t have the relationship-building savvy that the Goliaths like MS and IBM have earned over the years.
Corporations aka big businesses are highly risk-averse, there is still reluctance to adopt Google products. However, Google will succeed in the small biz/individual segment, this is the market that has always been the sore spot for MS but sweet spot for Google.
Google has ridden the wave of democratization of the Internet, and this will lead it to success in other related web businesses. Should MS be worried? Oh yeah. Google has started chipping away at its domain, and some day Google may turn its sights on a bigger slice of the pie.
But in the short-term, there’s nothing to see here folks, moving on…