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Google: A safe choice for the enterprise?

January 29th, 2009 by Janus Boye | , , , | 5 Comments

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Yesterday we held an afternoon seminar on Google in the Enterprise in London. With case studies from the Guardian newspaper and the WWF in Geneva, it was very interesting to learn from the experiences from two large and complex organisations that have both adopted many different Google tools.

In the subsequent discussion, I mentioned the lack of a public roadmap for the many Google tools as a high risk factor for enterprise buyers. Roadmaps can provide you with valuable information on new features, but Google has traditionally been very secretive about future releases. A delegate mentioned that roadmaps from more traditional enterprise software vendors tend to be worthless anyway, as they are constantly amended.

Another risk factor that we touched on was cloud computing. Some trust cloud computing entirely and see many benefits while others are more sceptical. GNU founder Richard Stallman is one of those who has called cloud computing a trap. When thinking about moving your data into the cloud, it is worth remembering that very few, if any at all, have experience with migrating data away from the Google offerings. While it might be easy to get started with a Google tool, how do you actually move you data out, say from Docs, Analytics or Sites? It seemed like few in the audience had a migration plan in place for this eventuality. For more background on cloud computing, I recommend the recent article on In Cloud We Trust? from ReadWriteWeb.

Yet another risk factor that came up in the discussion, is the fact that Google still gets the vast majority of revenue from advertising. It amounts to approximately 97 % according to the recent Q4 Financial Summary from Google. One delegate predicted that Google might receive increasing pressure from shareholders to focus more on the revenue generating products, e.g. Urchin, GSA and Message Security, rather than the many products that are free of charge, e.g. Groups, Blogger and Sites. Disclaimer: I am no financial analyst, so I might be interpreting the numbers wrongly.

Google is a safe vendor, in the sense that they are among the least likely vendors to go bankrupt. However, when revenue from enterprise solutions is such a small share, it is historically not a safe choice for buyers. Big vendors kill products all the time, just like Microsoft did a few years ago with Microsoft CMS 2002 which is still used around the world, but is no longer improved.

Author

Janus Boye

Janus is based in Aarhus, Denmark. As founder and managing director at J. Boye, he has grown the business from an office at home in 2003 to a global operation today

  1. Sten Vesterli January 30th, 2009 15:13

    Some people have had a fairly bad experience with Google Apps – see
    “Don’t ever use Google Apps for anything important” http://discuss.joelonsoftware.com/default.asp?biz.5.730915.0

  2. J. Boye » Blog Archive » Plone co-founder leaves Google February 5th, 2009 15:13

    [...] an addition to the list of risks to enterprise buyers that I recently listed in my comment on Google: A safe choice for the enterprise? Look for more analysis of this in CMS Watch’s upcoming evaluation report on Google in the [...]

  3. J. Boye » Blog Archive » Annual Report: IBM - where do you want to go today? March 25th, 2009 15:13

    [...] Customers of IBM’s portal, web content management and enterprise search solutions might want to take note of the fact that these are barely mentioned in this year’s annual report. For me this is a useful reminder that IBM is a vast company and these solutions represent but a fraction of overall revenue. This is very similar to Google and their tiny Enterprise business. [...]

  4. » Why Enterprises have not Gone Google yet - J. Boye » Blog September 30th, 2009 15:13

    [...] I recently visited Google in London for the second time to hear more about Google Apps for enterprise use. This time I was with a group of CIOs who were on a mission to see if Google could be an alternative to their current solutions. I was surprised to see how little had actually happened since we last visited them in January 2009. [...]

  5. The silver lining of the mighty cloud – attractive or scary? | Philadelphia 2010 News | J. Boye Conferences April 12th, 2010 15:13

    [...] stuff” from own to externally hosted spaces. It is a fast moving space. Lots has happened since we examined some of Google’s early cloud based offerings last year. A number of media organisations were quick to move – but then their considerations [...]

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