The Schwartz
Cloud Report

Blog archive

Microsoft Argues Hidden Costs of Google Apps

With its beta of Office 365 now out, Microsoft has once again come out swinging against its arch rival Google, this time arguing that the lower cost of Google Apps for Business may be a mirage.

Google Apps for Business costs $50 per year. Microsoft's equivalent offering, the forthcoming Office 365 Plan P1, which includes Exchange Online, calendaring and Office Web Apps, will cost $72 per year.

In a new whitepaper titled "Counting the Hidden Costs of Google Apps," Microsoft points to the following Google add-ons and their associated price tags:

  • Postini, which offers security and Gmail retention: $33 per year
  • Power Panel, which provides delegation of administrative tasks: $8 per year
  • Google Apps help desk support: $360 per year

There's a laundry list of other potential costs, but you get the point. Tom Rizzo, Microsoft's senior director of online services, calls it the "The Hidden Google Tax."

"The 'Google Tax' is unnecessary and can add up quite quickly," Rizzo said in a blog post. "This is especially true when running Google Apps alongside Microsoft Office. On the surface, Google Apps may seem like acceptable replacements for enterprise-grade products such as Microsoft Exchange Server or Microsoft Office. But many IT organizations have found that Google Apps bring extra hidden costs."

Opinions will vary as to whether this is Microsoft's latest attempt at FUD, or if these add-ons really add up. A commenter on Rizzo's own post raised the question of how many shops will opt to pay the $360 per year for Google Apps help desk support. Another said Rizzo's post was spot-on.

For shops where cost will dictate which vendor to go with, this debate will rage on and require companies to look at their needs and actual migration costs.

What's your take on Microsoft's latest assault? Fact or FUD? Drop me a line at [email protected].

Posted by Jeffrey Schwartz on May 05, 2011


Featured

  • Nebula

    Ahead of AGI, Microsoft and OpenAI Redefine Their Partnership

    In a recapitalization announced Tuesday, OpenAI has launched a new public benefit corporation (PBC) called OpenAI Group, giving Microsoft a 27 percent ownership stake valued at approximately $135 billion.

  • Veeam Acquires Securiti AI To Unify Data Resilience and AI Security

    Veeam Software is making a strategic move into AI and data security by acquiring Securiti AI for $1.7 billion.

  • Microsoft Adds 'Mico' Virtual Assistant to Copilot in Major Fall Update

    In a significant feature update, Microsoft on Thursday said it is reshaping its Copilot AI platform with features that deepen user personalization and enable real-time group collaboration, among other perks.

  • Nutanix Partner Central Rolls Out To Boost Channel Engagement

    Nutanix on Wednesday launched a new platform, Partner Central, to give its channel partners a unified digital workspace for managing sales, tracking incentives and collaborating more effectively.