Google's Tip of the SaaS Iceberg
    In a non-surprise announcement that has nevertheless garnered major attention, 
  a beefed-up version of Google's hosted productivity suite is 
out 
  there for businesses for $50 per user per year. Its 
obvious 
  target is Microsoft Office, but it's hard to say, with volume discounts 
  so prevalent in so many companies, whether Google's offering will actually be 
  cheaper than Office for businesses, especially larger ones. It's also hard to 
  say whether corporate IT directors will open up to a hosted model for a productivity 
  suite or whether users will be willing to accept applications that don't have 
  all the options that Microsoft Office offers. (On that last point, actually, 
  we've often wondered if Office actually offers way too much -- what percentage 
  of Word's functionality do you actually use?)
Still, if software as a service is going to be the way of the future, this 
  is where it starts: a lightweight, hosted, reliable (at least according to Google) 
  suite that won't break the budget. Salesforce.com has done very well for itself 
  in customer relationship management using the same concept, and Google has the 
  name recognition, the resources and the innovative drive to make a serious run 
  at Office -- if not with this somewhat limited offering, then certainly with 
  the next one or the one after that. And small businesses tired of forking over 
  $300 or $400 for Office might just have a look at Google's wares right now. 
How should Microsoft respond to Google's effort? (Maybe not with something 
  called Office Live, thanks 
  to another lawsuit.) How much longer will Office survive as a massive suite? 
  How coherent a strategy is Office Live (or whatever it will be called) right 
  now? It's a cliffhanger for now, but we'd love to hear your take at [email protected].
 
	
Posted by Lee Pender on February 27, 2007