2. All Contents © 2007 Burton Group. All rights reserved. Burton Group Take 5! The Disrupter: Google Enterprise Apps Guy Creese, Senior Analyst, Collaboration and Content Strategies March 19, 2007

3. 2 Google Apps, Premier Edition Rudimentary applications Gmail, Google Talk [IM] Google Calendar, Docs, and Spreadsheets Page Creator and Start Page APIs E.g., single sign-on, user provisioning, e-mail gateway support Online support documents and 24/7 phone support Third party applications and services E.g., Postini for archiving, Sxip Identity for single sign-on 2 Burton Group Take 5: The Disrupter: Google Enterprise Apps

4. 3 Pricing Pro $50 per user annually 17% of the Microsoft cost, if calculated at $300 per user annually Con SaaS says the network is the computer; therefore, may have to pay for employee Internet connections, at $480+ per worker per year Can refuse to do so, at the risk of alienating employees 3 Burton Group Take 5: The Disrupter: Google Enterprise Apps

5. 4 Software as a Service (SaaS) Pro Pay as you go Can treat it as an operating expense, rather than as an asset on the balance sheet A lot of IT infrastructure goes away (servers, installation coordination) Con Must be connected to the Internet, so no offline support Unlike SaaS apps such as Salesforce.com, employees won’t tolerate downtime 4 Burton Group Take 5: The Disrupter: Google Enterprise Apps

6. 5 Google and its culture Pro Huge market cap Can acquire technology and companies at will Successful at selling the Google Search Appliance to enterprises Con Web development comes first; the enterprise comes second Enterprise Application division makes up 4% of the company Follow through is poor Partners characterize Google as “arrogant” 5 Burton Group Take 5: The Disrupter: Google Enterprise Apps

7. 6 Segments users into two tiers Power users The few: Spreadsheet jockeys and Word wizards Shallow users The many: Use base functionality and no more Enterprises can better pay for what they use Pressures Microsoft to price Office based on user type, rather than suite component 6 Burton Group Take 5: The Disrupter: Google Enterprise Apps

8. 7 Disrupts the market players and creates a startup lottery IBM: Must look for a SaaS partner: Google or Yahoo! Microsoft: Attacks the Microsoft installed base and accelerates Redmond’s stimulus/response Oracle: Huh? Who? Lost amidst the noise Startups: Coding the next Google App as an exit strategy 7 Burton Group Take 5: The Disrupter: Google Enterprise Apps

9. 8 Playing for keeps: the datacenter arms race Burton Group Take 5: The Disrupter: Google Enterprise Apps Source: The New York Times Source: Microsoft Corporation

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