Microsoft and Google: Another Wal*Mart and Amazon Type Battle Emerges

November 26, 2009

I missed the Information Week story “Microsoft Drops Prices of Cloud Apps”. The link to that Wal*Mart tactic appeared in “Microsoft Lands UK Cloud Deal”. The intriguing comment in the story about Wal*Mart / Amazon-type price competition. How did Microsoft nail the UK postal service contract? As I read the story, Microsoft worked overtime to retain the contract. The write up concludes with this comment:

Meanwhile, Microsoft has recently stepped up efforts to sells its online applications as Google intensifies its efforts to replace Exchange/Outlook and IBM Lotus Notes on desktops. Earlier this month, it dropped its prices by up to 50% on Exchange Online. Companies using or migrating to Exchange Online include GlaxoSmithKline, with 110,000 seats, and Aon, with 36,000 seats.

Great salesmanship? Price cuts? My hunch is that pricing may have a better sales personality than a professional salesperson. Will the same approach take place in enterprise search? I think it has in my opinion.

Stephen Arnold, November 26, 2009

I can’t resist. To the US Postal Service. I was not paid to write this postcard-sized article. Stamp it a freebie.

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