Weather bulletin – Google Cloud and icy Microsoft downpour

Updates 13.12.11

Why not read, something different – Influential Slaves, Bigots and Size Zeros

‘It is not the strongest of the species that survives, nor the most intelligent, but the one that is most responsive to change.’

Charles Darwin

I looked at the quote above from my post a few weeks ago and was quite surprised as it quite aptly grasped my thoughts for this post (so I’ll leave it there for this week as well). Last year, I wrote a post, What is Cloud Computing? Its Pros/Cons and making it work. Before, I start, I want to clarify that the Microsoft platform (includes all its business software) is, in my eyes, legendary. The world would be completely different, if it wasn’t for Microsoft’s computing vision. I trained on Microsoft, (MS-DOS days) as Novell started to falter and Microsoft continued with its visionary flare. Keep reading and all will be revealed!

Nine months is a long time within the IT world and for the past few weeks I have been researching Cloud Computing again. Hang on, now, let me finish. This time around, I have asked myself three questions:

  1. Can I create an IT strategy, infrastructure and business systems for a small business on Google Apps?
  2. Is Microsoft future proofed with Web Apps?
  3. Cloud based ERP. Fact or fiction? (I will post this separately soon)

This week, I will attempt to answer the first two questions and follow up with an answer to the third question soon. Now, don’t forget, there is no right or wrong answer to this question, just opinions (Pre-requisite: Visioning hat required). To make this a great debate, I welcome opinions from both camps (This is a test in social media monitoring as well; let’s see if Microsoft and Google are monitoring the web). It goes without saying that I value readers’ opinions, so feel free to have a say. So…

  1. Can I create an IT strategy, infrastructure and business systems for a small business on Google Apps (Announced 9/3/10)?

‘Seek and ye shall find.’ So, I did. The answer (in my opinion) is a resounding YES. Why, well, because, the cloud allows a business to do the following:

  • Fast ubiquitous accessibility 24/7, 365 days a year (Increasingly easily available Wifi and Internet connectivity).
  • Enables quicker, cost effective IT start-up for new businesses.
  • Faster product/application development.
  • Not machine dependant (Requires only a browser).
  • Accessible on entry level machines.
  • Cost savings through lower machine, maintenance and software costs.
  • Scalability can be provided very quickly.
  • Opex vs Capex costs.
  • Less environmental impact through virtualisation of hardware/software and other areas.

AND, Google Apps allows:

  • Entire Google Apps infrastructure built towards a vision of cloud computing.
  • Access to the Premier edition that contains a comprehensive suite of apps.
  • Access to a growing number of applications including ERP, Social media etc from the Apps store, many are free for 1-3 users .
  • A flat fee licensing system (£33 per user per annum) vs Microsoft licensing that even Microsoft don’t understand!
  • Collaborative features are enabled from the start allowing, for example, multiple users to edit documents simultaneously.

In effect, Google have created the perfect platform for a small business. It provides the infrastructure and a starter IT system. Once Google Apps are combined with the available ERP and social media solution, the IT system is raring to go.

Obviously, the larger an organisation and the larger the investment in Microsoft and/or other IT systems, the harder it will find to move into the cloud. As I said, in last year’s post, there are other considerations that need to be considered as well. Google, meanwhile continues to blow its trumpet for acquiring 2 million users and counts the USA city of Los Angeles move to Google as a major feather in its cap!

2. Is Microsoft future proofed with Web Apps?

The answer (in my opinion) is NO. Why, for a number of reasons.

According to CIO.com, ‘On the Microsoft Office side, price for the full suite range from $150 to $680 depending which of its many versions you are looking for. With Office 2010, Microsoft will be offering Office Web Apps, free but not fully-featured online versions of Word, Excel, PowerPoint and OneNote.

There will be three versions of Web Apps: One for consumers supported by ads; a hosted version for businesses that pay for hosted accounts on Microsoft Online Services, which is powered by SharePoint; and a corporate in-house version for enterprises with volume licenses for Microsoft Office and a SharePoint server.

Office 2010 will launch for businesses on May 12, but Office Web Apps are not scheduled to launch until mid-June.

Microsoft also has BPOS (business productivity online suite) – now superceded by Office365, in its arsenal, a part of Microsoft Online services that includes online versions of SharePoint, Exchange, Office Communications Server and Live Meeting for $10 per user per month for all four apps.

A version for OEMs will allow Office 2010 starter edition (Word and Excel 2010 only) to be shipped with the computer.’

REASON 1

Microsoft is a giant in the software world and one of the penalties it is paying for its enormous success is that:

  1. Its products are now so diverse that only IT experts can make any sense of them. Need convincing. Ask any non IT personnel to visit any Microsoft site and ask them to explain a particular Microsoft site’s products and what they can actually do for them.
  2. Sheer confusion. As a business owner, for my Microsoft IT system, where do I start? Do I need Office 2010? (What does it have that will improve my productivity?) What version do I use? (Client installation? Which one of the three Office Web Apps, do I need? What the hell is the BPOS (business productivity online suite) – now superceded by Office365?)
  3. Microsoft Licensing and its payment model – Again, this is an open challenge to Microsoft. How many Microsoft employees can explain Microsoft licensing without referring to a price model manual? The correct answer should be at least half its workforce. Why? You cannot sell what you don’t understand (Microsoft have actually done remarkably well then!). Ah, would an employee be able to explain it all in a pub, though?
  4. Microsoft’s entire business model is built on desktop/laptop client installation and as long as it has enough businesses that utilise that legacy because they have no other option, for the short term, it faces no financial problem. In the long term though, I believe businesses will start to abandon ship. Afterall, Google and others will start to offer simple (in licensing terms, products’, versions, etc), cost effective, non business owned infrastructure. Look at what happened to WordPerfect, Novell and many others.

Let’s continue with CIO.com, ‘Google itself concedes that any overnight success in the enterprise is unrealistic, yet remains fully committed to the enterprise, citing rapid growth in Google Apps’ short three-year life span.

“Google Apps have only been in the market since 2007 and we’ve gone from zero to two million business customers,” says Rajen Sheth, Google’s senior product manager for Google Apps. “There’s so much potential here and we’re in it for the long haul.”

Where Microsoft is trying to migrate its products into a cloud environment, Google is fundamentally a cloud company, says Sheth, and has gone to great pains to build extremely large data centers designed specifically for nimble Web-based applications.

“It will be tough to build up the cloud expertise that’s been built into Google’s DNA since day one,” Sheth says.’

REASON 2

That, as they say, is the fundamental problem. Google is fundamentally a cloud company as Sheth said.  Microsoft never was and never will be. It’s just not in its ‘DNA.’

FINAL THOUGHTS

So, Microsoft should be very worried. Microsoft should not get carried away with analyst reports that paint a rosy future but start to listen to customers, such as the city of LA. The paradigm is shifting and it’s shifting fast towards the cloud. After all, the other promise of the likes of Google is not just the simplicity of the entire model but the entire spectrum of cost savings!

It’s the dawn of a new era, where even financial wizardry by Gordon Brown could not save him. Globally, change is happening. The question to ask though within IT is, ‘Who will win this war, Google or Microsoft?’ Or, is there room for a coalition?

WANT TO READ MORE?

Search wars – Past, Present and future – Bing, Google or new entrant?

Will Office 2010 Shred Google Docs?

Microsoft Office vs. Google Apps: The Business Brawl

Google Apps vs. Office Web Apps: Can Microsoft compete in the cloud?

Microsoft Web Apps Will Force Google’s Hand

Free Microsoft Office – with Ads

Microsoft Office 2010: 3 Reasons to Switch

Microsoft vs. Google: Tech Giants’ Turf War Heats Up

Google and Salesforce: composite applications for better enterprise lift

Microsoft counterattacks Google for Apps sales pitch

Office 2010 goes into the cloud

Top 10 Google App Add-Ons for Business Users

Design Your Business Model With Google Docs!

About mubbisherahmed
I am passionate about IT and its ability to deliver cost effective, value for money solutions that can enhance performance and in many cases provide competitive advantage by using a range of solutions and approaches in innovative ways.

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