Microsoft plugs the dike against a Google Apps flood...for now

If you haven't read CIO.com's account of Microsoft's frantic attempts to keep Procter and Gamble from using Google Apps, read it now. As I reported last year, I've personally seen very large companies kicking off large pilots of Google Apps to wean themselves off Microsoft, but I've yet to see such a dramatic response from Microsoft.

Microsoft is blase about Google Apps in public, just as it used to be about open source, but incidents like P&G are making the software giant realize that it has a serious problem on its hands.

Microsoft saved the day at P&G by shipping COO Kevin Turner out to P&G headquarters to arm-wrestle its CIO into signing a long-term contract with Microsoft. P&G likely got a hefty discount to keep the faith, but at some point Microsoft is going to have to start competing with products again, not merely prices. Its profitability and growth will flounder if it doesn't.

[Vegaman_Dan]

I'm curious- what sort of on site service does Google offer for enterprise customers? Data confidentiality? Terms of service? Service Level Agreements?

The problem with much of Google's offerings is that they are beta. The even bigger one is that Google can and has changed their TOS several times now without informing their users (they even state in their TOS that they do not have to notify you of these changes). What enterprise level company will do business with that sort of conduct?

I'm not saying MS is any better, but I do wonder about Google's corporate customers. I'd love to see what the contracts are.

[The_Decider]

I am surprised that companies who are understandably moving away from MS, would run towards Google.

Google will use their private data for their benefit and most, if not all, of their apps are total garbage. GoogleDocs makes Word 2007 look good and that is not an easy thing to do!

[Mark_Anderson]

So basically P&G renegotiated more favourable terms by threatening to take their business elsewhere?

OK.

[jeffparm02]

What's wrong with a little friendly comp. microsoft?

[softwaredesignengineer]

What's wrong with a little friendly comp. Google?

[Squichie]

Heh, its actually kindof smart to do that. It seems that the ball was in P&G's court, getting M$ to give them a hefty discount or else they would move.

Google Android, yah the TOS's have been changed allot, which is annoying, but it still remains largely open source, and not to mention, app developers keep 100percent of their profits. Its a really attractive platform to develop with. (Not to mention the 10 million dollar bounty)

[SherifXel]

I think Microsoft will have harder times on the competition with Google. I believe, anytime soon android will be ready to use on PCs and then a tougher competition will start between MS and Google. I can't wait to see that.