Now Google set a price on their version of an “office productivity suite” that includes nearly unlimited offsite storage: $50 per user per year according to this story. I think there’s a problem with Google’s approach. It hurts me to say this, because Google people are the smartest people in the world, (just Google them if you don’t believe me) but they’re fighting the wrong fight. No one believes their online applications beat Microsoft Office computer-bound applications on features, and that’s fine. But large corporations pay not much more than $50 per year per employee for their Microsoft Office suites already, depending on how steep their discounts from Microsoft are. Even if they’re really paying $100 per user per year, Microsoft can drop the price based on some new volume licensing deal any time they want. That leaves Google with oodles of egg on their corporate face. The Fortune 5000 isn’t, I believe, the best market for Google Apps. Google can’t compete on features and any price advantage today may disappear tomorrow. But smaller companies, the ones who really will save money getting an office suite for $50 per user per year, are once again ignored. Too bad, because there are millions of under-served small business users who can benefit from Google Apps.
Small companies struggle to do three things that Google Apps provide. First, they get a decent set of applications for little money. Of course, they can get better computer-bound apps for free from OpenOffice, but that happens too rarely. Second, Google Apps provides offsite storage of data files, a critical issue for companies of all sizes, but more aggravating and expensive for small companies. Finally, Google Apps can be accessed from anywhere you can find a browser with Internet access. Remote access from office to office or home to office is another battle small companies still fight but the Fortune 5000 already won. Even if Google isn’t smart, you should be. If Google Apps works for you, sign up even if you’re not a big company. If OpenOffice and an inexpensive file sharing collaboration site works, then do that. It doesn’t matter if the big companies get the headlines if the little companies get the advantages.
