When Google CEO Eric Schmidt said his company would focus on three key areas--search, ads, and apps--most people understand that he gave precedence to the first two items on that list. But increasingly, Google has been making moves in the applications space, and its recent $625 million purchase of Postini, a company that makes email security and compliance software, marks an ever more aggressive move into the traditional business software space that's traditionally been dominated by Microsoft.
The all-cash deal for Postini comes after a year-long agreement during which Google licensed Postini software to protect its email-based Gmail and Google Apps services. Gmail is used by millions of individuals around the world, but the Google Apps service is increasingly popular with a growing number of small and medium-sized businesses. With the Postini purchase, Google can augment Google Apps to include the regulatory compliance piece that larger businesses require, making the service more valuable to a wider range of customers.
In addition to bolstering its corporate service offerings, Google will continue to sell Postini's other software offerings. The company's products are sold to corporations to protect third party email servers, including those running Microsoft's Exchange. Postini says it has over 35,000 corporate customers servicing over 10 million users.
While the future is uncertain, Microsoft has little to lose in the short term: Exchange Server currently controls about 62 percent of the $2.5 billion corporate email market, compared to 26 percent for IBM. According to analysts, Google and other Web mail suppliers could secure as much as 8 percent of that market by 2010.
Reader Comments
nice conflict of interest there - security from a spyware company. don't we have enough fake anti-spyware products on the market already? (really! just go to http://www.spywarewarrior.com/rogue_anti-spyware.htm for a short list - the net average is somewhere around 90%)
where's sx? i can see him now:
"security from b00ble??! not a chance!"
XP
Waethorn -July 10, 2007
"Google Takes New Step into Microsoft Territory"
They're invading Paul's brain?!
stevejobs -July 10, 2007
"They're invading Paul's brain?!"
nope, but they're getting into Apple's bed.
XP
Waethorn -July 10, 2007
Here I am...
Nobody would ever trust B00ble, and now Postini apparently...
sx4sport@hotmail.com -July 10, 2007
"nice conflict of interest there - security from a spyware company."
Funny...I didn't hear you complaining when Microsoft introduced "Windows Defender".
Pot, kettle, kettle, pot.
lotsamystuff -July 10, 2007
"I didn't hear you complaining when Microsoft introduced "Windows Defender"."
nice try. i similarly don't hear you complaining about Google partnering with Apple for integration into OS X - the Spyware 2.0 platform.
XP
Waethorn -July 11, 2007
"i similarly don't hear you complaining about Google partnering with Apple for integration into OS X - the Spyware 2.0 platform."
That's rich, isn't it? With all the malware, spyware, adware, viruses, etc. running rampant on the Windows platform, you call OS X "the Spyware 2.0 platform"? LOL...you remind me of the Wicked Witch in the Wizard of Oz, "WaeBonch". You come flying in to Munchkinland from your strange world on your little broomstick, huff and puff, and make no sense whatsoever. You're all smoke and mirrors--no substance.
You have no power here! Be gone before somebody drops a house on you, too!
lotsamystuff -July 11, 2007
keep telling yourself that Google isn't collecting your personal data, while i just keep reading reports countering the claim of one person.
http://www.privacyinternational.org/
http://www.google-watch.org/
http://www.google-watch.org/bigbro.html
http://en.wikipedia.org/wiki/Google_and_privacy_issues
http://news.com.com/2100-1024_3-6177819.html?part=rss&tag=2547-1023_3-0-5&subj=news
http://radar.oreilly.com/archives/2007/04/google_and_priv.html
http://www.cnn.com/2007/TECH/internet/06/18/google.privacy.reut/index.html
no substance indeed!
XP
Waethorn -July 12, 2007
stevejobs, you are a retarded! go back and fu*k your gay boyfriend!
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