Google Apps Challenges Microsoft For Business Software

Written By Sam on 27 December 2012

Businesses are adopting Google’s idea of using cloud-based software, which presents a challenge to Microsoft. It has taken more than 6 years, but Google seems to be cutting into Microsoft’s stronghold businesses. Previously Google apps were going to appeal mostly to small businesses and tech start-ups, but it’s now catching large enterprises. Most of the companies preferring Google apps over Microsoft, price seems to be the main reason. Jim Nielsen, of Shaw Industries calculated that using Google instead of similar Microsoft products would cost, over seven years, about one-thirteenth Microsoft’s price. Though Google has added features, charges $50 a year for each person using its product, a price that has not changed since it made its commercial debut.

Google Apps

Microsoft’s Office suite of software, in 2013, the list price for businesses will be $400 per computer, at the same time, raising prices for extra features and services. The 2013 version of Office, for example, costs up to $50 more than its predecessor. In addition to the lower price, Google has simplicity in pricing. 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 10, and others 9, statistics supporting Melissa Webster views that “Google is getting traction” on Microsoft.

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