Update on Google’s threat to disrupt Microsoft’s huge cash-cow Office business…
We recently spoke to the CEO of a public company with 500 employees who just unplugged Microsoft Outlook for Gmail.
We asked why.
The CEO did not wish to offend Microsoft, so s/he asked to remain anonymous. But here’s what s/he said:
- The all-in yearly cost of Gmail per employee is about $90, versus about $150 for Outlook
- Gmail is cloud-based, so it’s vastly easier to manage (especially for a globally distributed company)
- Employees can log in from anywhere–all they need is a password
- Security is fine
- Gmail works a lot better with other Google apps
- “Outlook sucks”
We asked the CEO whether Microsoft would ultimately be able to make Outlook competitive with the new Gmail threat. The CEO thought not.
On the other hand, we also asked the CEO whether Google would ever really understand that if it wants to deeply penetrate Microsoft’s stronghold in enterprise computing it would have to build a huge enterprise sales and service organisation. The CEO thought not.