Google has been busy over the last six years, finding and working its way into Microsoft’s strongest field – businesses.
Google launched a software for businesses, Google Apps, which consists of your basic applications for documenting, collaborating, text and video communications that are all cloud-based, so there’s no dilemma about work being left or lost on an employee’s computer. Google has been pushing this idea for over six years, and in the beginning, it was going to appeal to small businesses and tech start-ups, but attention from larger companies has been coming their way. One way Google has been drawing the attention of so many is its price. They charge $50 a year for each person using their product, even with additional features which include the ability to work on a computer not connected to the Internet, as well as security and data management that must follow more strict European laws.
Microsoft’s Office suite doesn’t include email and is installed on a desktop or laptop. In 2013, the list price for businesses will be $400 per computer, but after purchasing large volumes, many companies pay half; however, the 2013 version will cost up to $50 more than its predecessor.
Microsoft has also jumped on the office-in-the-cloud trend. In June 2011, it released Office 365, and now offers its software in both a cloud version and a hybrid version that uses cloud computing and conventional servers. Office 365 starts at a list price of $72 a year, per person, and can cost as much as $240 a person annually, in versions that offer many more features and software development capabilities. Microsoft says it offers more than Google for the money, but the product has not won many converts from Google.
No word has been revealed about how many people are using Google Apps, but back in June 2012, more than five million businesses were using it, up from four million in late 2011. Most businesses are small, and in December 2012, Google announced that even companies with fewer than 10 employees, which used to get Google Apps for free, will be charged.
Google’s revenue from Apps, according to a former executive who asked not to be named to maintain good relations with Google, amounted to perhaps $1 billion of the $37.9 billion Google earned in 2011.
Even though Microsoft sells a similar product, she said most companies did not want to depend exclusively on clouds for documents and communication. Microsoft now has some of its own workers entirely online, she said, while others use both local computers and the cloud to get a feel for how various companies work.
According to the General Services Administration, out of 42 federal government contracts for which Google and Microsoft competed in 2012, Google won 23 deals, and Microsoft won 10. The rest went to another company, Zimbra, which is owned by VMware, a maker of cloud software.
Cloud Computing: Google vs. Microsoft Azure
One of the most prominent battlegrounds is cloud computing. Microsoft Azure has long been a leader in this space, benefiting from the company’s existing enterprise relationships and robust infrastructure. However, Google Cloud is rapidly expanding, offering competitive pricing, machine learning integration, and data analytics capabilities.
Businesses are beginning to recognize Google’s strengths in handling big data and AI-powered tools, which directly challenge Microsoft’s dominance. With more organizations moving their operations online, the race between Google Cloud and Microsoft Azure will only intensify.
What This Means for Users
For businesses and individuals, the competition between Google and Microsoft is largely beneficial. It means:
- More Innovation: Both companies are racing to outdo each other with new features.
- Better Pricing: Competitive markets often lead to more affordable products and services.
- Greater Flexibility: Users can choose between ecosystems or combine both to suit their needs.
At the same time, this rivalry pushes both companies to keep improving, which prevents stagnation in the tech industry.
