Google Apps: Limited to Low Dollar Buyers

September 2, 2008

Guy Creese, a wizard consultant with the high octane The Burton Group, has analyzed Google Apps and concluded:

More nimble SMBs and cash-crunched universities will be the sweet spot for Google Apps.

You can read his analysis and plug for his prognosticative abilities here. Mr. Creese, high octane consultant, identifies four factors that have dampened enthusiasm for Google Apps. I agree with these. For example, who doubts that large organizations are conservative, slow moving, and generally indifferent to the technical trends that make college students hop about like Rafael Nadal after winning a hard fought point.

My own research suggests another couple of reasons behind the lackluster success of Google in the giant companies where IBM, Microsoft, and Oracle.

Google is not very good at sales. It use of partners is idiosyncratic. The professionalism of the Google enterprise team is not in doubt, but the approach is sufficiently math club like to make Fortune 1000 buyers buy Google stuff that provides a bit more control; for example, the Google Search Appliance and Google geospatial services. The cloud services need more than good cheer and nerd bonhomie to close a deal. Keep in mind, however, that Google closed a deal for 1.5 million mail boxes in New South Wales, but school districts aren’t big time companies where The Butler Group trolls for work.

Finally, Google’s enterprise approach often leads to exasperation on the part of the buyer. Change is underway. In fact, Google commissioned a study to find out what was off track. I haven’t seen the results, but I hear that changes in Google’s enterprise unit are coming.

Stephen Arnold, September 2, 2008

Comments

One Response to “Google Apps: Limited to Low Dollar Buyers”

  1. Google Chrome on September 2nd, 2008 3:11 am

    […] Changes in Google’s enterprise unit and the valuation of Google Apps (Beyond Search) http://arnoldit.com/wordpress/2008/09/02/google-apps-limited-to-low-dollar-buyers/ […]

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