Google upgrades to entice businesses - East Valley Tribune: Business

Google upgrades to entice businesses

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Posted: Wednesday, October 3, 2007 11:38 pm | Updated: 5:49 pm, Fri Oct 7, 2011.

SAN FRANCISCO - Google is sprucing up its corporate email service by adding security tools and more than doubling the storage capacity of e-mail boxes, underscoring the online search leader’s ambition to enlarge its role in the business software market.

The changes, to be unveiled today, mark Google’s first attempt to capitalize on the technology that it picked up in its recently completed $625 million acquisition of e-mail security specialist Postini.

Google also is courting Postini’s existing customers as it tries to drum up more interest in a suite of online software applications that costs each user $50 annually. The roughly 36,000 businesses already using Postini products can get the software bundle, which includes word processing, spreadsheet and other programs besides e-mail, free through June 2008.

After the free trial expires, Google hopes to keep many of those businesses, which include more than 11 million individual users, as customers.

To make its corporate email product even more enticing, Google has boosted the storage capacity of each individual mailbox to 25 gigabytes, up from 10 gigabytes.

The storage capacity of individual accounts with Google’s free e-mail service, known as “Gmail,” will remain at just under three gigabytes.

Without providing a breakdown, Google says hundreds of thousands of businesses, government agencies and schools already use its software applications. That includes users relying on a free bundle of programs that are less sophisticated than the ones in the subscription version.

Founded in 1999, Postini provides tools that insulate email from viruses and spam, recover lost data and ensure employees sending and receiving messages don’t violate company policies.

Google bought Postini largely to address concerns that its corporate e-mail service lacked adequate security and compliance measures.

Gartner analyst Tom Austin said Wednesday’s upgrade is a reminder of how serious Google is in its crusade to sell corporate America on the notion of using low-priced online software instead of installing programs on the hard drives of individual computers.

“These are all just pixels in a much bigger picture,” Austin said. “Google is really trying to shake up the assumptions of people and move the industry to an entirely different model.”

Google’s expansion into business software, launched last year, looms as a threat to Microsoft Corp., which derives much of its profit from the sale of its more expensive Office suite of software applications as well as its e-mail programs.

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