Showing posts with label Microsoft Office 365. Show all posts
Showing posts with label Microsoft Office 365. Show all posts

Tuesday, June 28, 2011

Google in preemptive strike on Microsoft Office 365

Google Apps product manager Shan Sinha was once director of strategy for Microsoft SharePoint, Redmond's longstanding effort to facilitate business collaboration over the net.
Sinha left Microsoft in the fall of 2007 to create DocVerse, a service that bypassed SharePoint, plugging Microsoft Office clients into Google Apps. Sharepoint, hesays, just wasn't working.
"Lots of people seemed to be adopting SharePoint, but few were really using it, " he tells The Register.
"SharePoint was one of Microsoft's fastest growing business...but as it turns out, end users found it too complicated. It was too limited in how you could actually share documents and files."
Less than three years later, Google acquired DocVerse, and in February, the service was relaunched as Google Cloud Connect, with Sinha assuming control of all Google Apps "messaging" services, including Gmail, Google Calendar, and Google Contacts as well as the email security, encryption, and archiving tools that came with the company's acquisition of Postini.
Sinha's story is a convenient metaphor for Google's enterprise business as a whole. Google isn't just taking on Microsoft. It's turning Microsoft's aging Office business against itself.
In addition to plugging Microsoft Office into Google Apps via Cloud Connect, Google has turned Gmail into a Microsoft Exchange backup service. It's offering a plug-in that transforms Outlook into a Gmail client. And, now, as Microsoft prepares to launch its latest online business productivity service – Office 365 – Mountain has called on Sinha to tell the world why the new Redmond suite pales in comparison to Google Apps.
On Monday – a day before Microsoft's Office 365 release party in New York – Mountain View unloaded a blog post from Sinha entitled "365 reasons to consider Google Apps".
The post includes only four reasons, but you get the message. It's the same message Google was intent on delivering when The Register was summoned to the company's San Francisco outpost last week for a sit-down with Sinha. Clearly, the meeting was meant to answer Redmond's big launch.
"Google is a company that's not falling victim to baggage from before, compromising products out in the market. They have the privilege of completely rethinking the way things should work," Sinha told us.
"[Office 365] still seems like a repackaging of a lot of things that Microsoft already has – which is the sort of thing Microsoft has done for its entire history. Yeah, you're still using Exchange in the cloud, but you're still using Outlook on the desktop. For collaboration, it's still SharePoint, this very clunky thing."
Office 365 is a subscription service offering hosted versions of Microsoft Exchange, SharePoint, and Lync, the Redmond platform that combines IM, VoIP, and video conferencing.
The service also includes access to Microsoft's Office Web Apps – versions of Microsoft desktop clients that can be used from a browser – but these offer a rather limited set of tools. Office 365 is primarily meant for use with Microsoft's desktop Office suite. Some Office 365 plans actually include subscriptions to a version of desktop Office.
Preemptive strike
In other markets, Google rarely goes out of its way to attack the legitimacy of the competition. It typically leaves such heavy-handed tactics to the Microsoft's of the world. But in recent months, Google had taken a very different approach with its enterprise operation.
In November, Google actually sued the US Department of the Interior, claiming the federal agency didn't give Google a fair shot at winning the $49.3 million contract it awarded to Microsoft. And it's preemptive attack on Microsoft Office 365 is lifted straight from the Microsoft PR playbook.
"Technology inevitably gets more complicated as it gets older. Upgrading platforms and adding features results in systems that are increasingly difficult to manage and complex to use," Sinha's blog post reads. "At times like these, it's worth considering a clean-slate: an approach based on entirely modern technologies, designed for today’s world."
The old technology would be Microsoft's. The "clean slate" would be Google Apps.
In some cases, Sinha's argument is mere posturing. "Office 365 is for individuals. Apps is for teams," he says at one point, without actually comparing Apps' collaboration tools with Microsoft's. And he sidesteps any mention of the inherent limitations of Google Apps.
He doesn't say that Google's web-based applications can't quite match the tools offered by their counterparts on the desktop. And although he points out that Google Apps is "designed to work well on any device, on any operating system", his post doesn't acknowledge that Apps can't be used when you're offline. Speaking with The Register, Sinha said that offline Google Apps is still scheduled to arrive sometime this summer.
But there's one area where it's hard to argue with the man. In January, Mountain View updated its Google Apps contracts so that they no longer make allowances for scheduled maintenance. The contracts guarantee 99.9 per cent uptime, and any downtime - no matter how small - is counted and applied to the customer's agreement.
Previously, Google's service level agreements (SLAs) made allowances for scheduled downtime, and they never counted downtime of less than ten minutes towards the customer's contract. When the new agreements rolled out in January, Google called them an "industry first", and Sinha told us last week that he's still unaware of any competitor offering a similar guarantee.
In 2010, Google says, its services were up 99.984 per cent of the time. And through first several months of 2011, they're at 99.9949 per cent. That translates to about five minutes of downtime per month.
Google Apps runs across a highly distributed back-end infrastructure, so that the company can take servers in one data center down for maintenance while servers in another data center – or another part of that same data center – handle the load.
"One of the biggest difference's between Google and Microsoft from a hosted standpoint has really been the reliability of the suite," says Michael Cohn, the chief executive of Cloud Sherpas, a company dedicated to facilitating the use of Google Apps and that has moved myriad business off of Microsoft tools.
"Outages that Microsoft BPOS [the precursor to 365] has been incurring – both scheduled and unscheduled – has proven that whereas Microsoft has proven it can build enterprise software, it's not necessary as good as even some of their partners in hosting software."
Cohn has vested interest in the success of Google Apps. And he acknowledges that Microsoft's ways could change Office 365. But Google's SLA backs him up. And Redmond's case wasn't helped by the outage that hit Microsoft BPOS just last week.
'Traditional Microsoft'
Sinha also argues for the simplicity of Mountain View's pricing structure. Google Apps sells for $5 per user per month – or $50 per user year – whereas Microsoft offers three separate "editions" of Office 365 and 11 different pricing plans.
Some include desktop software, others don't. "The Office 365 licensing schemas are traditional Microsoft. It's very difficult to understand," says Michael Cohn. "Once you start comparing apples to apples, I don't think the cost of Microsoft's suite is all that attractive."
Yes, there are add-ons for Google Apps that cost extra, and you could always debate whether Google's setup is actually more cost effective than Office 365, a service hasn't even launched yet. But the point here is that Microsoft is straddling the old world and the new. The plans are quite difficult to grasp. And whether purposely or not, Microsoft's literature blurs the importance of desktop Office to the service.
Office 365 continues Microsoft's move onto the web, but this move is only partial. Microsoft is shifting to a direct model, but it's still hoping to keep its existing resellers happy.
As Sinha admits, Microsoft has "inertia" on its side – so many businesses will use Microsoft only because they've used it in the past – but Redmond is also burdened by the old client-server model that was sold through the channel. However you slice it, this comes with added costs – and added hassles.
You can criticize Google's UI. You may balk at putting your data on Google's servers. But delivering all software across the web, through a browser, is at least a triumph of simplicity. You need never update a client.
And all server-side updates happen automatically, from inside Google's data centers. According to Google, it's customers received more than 125 new tools over the past year. If you can get by without all those extra tools you get with a desktop client, that $50 a year price tag is quite a bargain.
The other point here is that Google determined to beat Microsoft at its own game. Google is primarily an online advertising company. But it very much wants to something else. If nothing else, that's the message delivered by Shan Sinha.

Wednesday, June 22, 2011

Google Apps Vs. Office 365: Prepare For Battle

Software giant Microsoft is playing coy. The company on Monday announced that its Office Division will be making an announcement on Tuesday, June 28. What about? Microsoft's event invitation says only that the news has something to do with Office 365, the long-awaited cloud-based version of its Office software.
Microsoft seems determined to pretend that VP Jon Roskill hasn't already eliminated the possibility of surprise. In a Twitter post in early June, Roskill revealed that Office 365 will move
from beta testing to general availability on June 28.
Google and the other companies involved in the cloud productivity competition--IBM, Novell, ThinkFree, Zoho--have been preparing for this day, the moment when the battle of the cloud productivity suites is joined in earnest.
Taking a few last shots at its approaching foe before it has to grapple with Office 365 at every sales call, Google on Tuesday revealed that the State of Wyoming has finished moving all 10,000 state government employees to Google Apps for Government.
One day earlier, Google presented a testimonial from Terry Geiger, director of corporate IT at The McClatchy Company, about how his company has "gone Google."
And amid these customer-win stories, Google just released an enhancement to Google Cloud Connect for Microsoft Office that allows users to open any Office file stored in Google Docs directly from within Microsoft Office.
Google has been spending a lot of time thinking about Microsoft recently. So have its business customers.
McClatchy has decided to ditch Microsoft Exchange and adopt Google Apps for email, collaboration, calendars, chat, and website creation for its 8,400 employees. The company plans to stop upgrading Microsoft Office licenses en masse and to encourage the organic adoption of Google Docs.
Geiger's "Dear Steve" letter, in which he breaks up with Microsoft, derides Microsoft Exchange as complex, expensive, and cumbersome. He says that his company weighed Google Apps against Office 365 and its predecessor, BPOS, and found Microsoft's products wanting. As Geiger sees it, Microsoft fails to understand the "service" part of software-as-a-service.
"Microsoft may still be the personal productivity leader, but Google is the team productivity leader," he wrote. "Google Apps and its collaborative nature are really where we want to go. Google has a better service strategy, better collaborative strategy, and a better cost structure."
Geiger in a phone interview clarified that his company primarily evaluated BPOS and considered Office 365 based on the descriptions provided by Microsoft sales representatives, since 365 was not yet available. He said that while price was a significant factor, it was not a deciding one, adding that the pricing structure of Microsoft's offerings is "very complicated."
Geiger said his company's decision focused on functionality and service. In contrast to Google, which pursues a strategy of rapid iteration, releasing ongoing updates every few days or weeks, he found Microsoft's approach antiquated. "As we talked to Microsoft about it, they still seemed stuck in the old model of a software company with a normal development and release cycle," he said. Microsoft, he suggested, seems to be committed to business-as-usual, developing its traditional product line, with long release cycles, and then pushing updates to the hosted versions of the applications.
With regard to service, Geiger said the inquiries he made to other Microsoft BPOS customers were not promising. "I didn't speak to a single satisfied customer with BPOS," he said, noting that they cited issues like long and frequent outages. (In fact, one such outage was reported on Wednesday.) "Microsoft still isn't a service-minded company," he said. "They're still a software development company that's trying to understand the service model."
The biggest hurdle to going Google, said Geiger, involved issues of data privacy and legal discovery. As a news organization, McClatchy was concerned that governments might try to obtain access to its confidential information by sending subpoenas to Google rather than challenging McClatchy in court.
Geiger said that his organization came away satisfied with Google's representations about privacy and security policies, though he also said that Google made minor adjustments to its agreement with McClatchy to assure that Google's response to subpoenas aligned with McClatchy's interests. He declined to elaborate on the specifics of those contractual terms.
Yet for all its bravado and first-mover advantage, Google is worried and Phil Karcher, an analyst with Forrester Research, suggests the company should be. In a phone interview, he said that the availability of Office 365 will have a negative impact on Google, though that won't necessarily lead to a surge in Office 365 usage.
Karcher said that a lot of large companies piloted Google Apps "as leverage to extract concessions" from Microsoft when it came time to renegotiate software licenses. That gambit may become less necessary now that Microsoft has a competitive cloud offering.
Office 365 also includes collaboration features--one of the main selling points of Google Apps--so Google Apps will be less able to claim collaboration as a point of differentiation.
"The main obstacle to folks moving to Google Apps overall has been the ability to bridge on-premises deployments to the cloud," he said. "Microsoft has a major advantage because it's so entrenched in IT departments, it can take customers on that long journey with ease."
A measure of that entrenchment: Forrester's Q1 2011 Global Desktop Innovation Online Survey, answered by 150 IT respondents, found that while many IT departments support Microsoft Office 2003 or earlier (74%), Office 2007 (72%), and Office 2010 (52%), few support Google Docs (8%). IBM Lotus Symphony was even less well represented (4%). And Karcher noted that actual deployments are probably even lower than that because many respondents described their use of Office alternatives as pilot tests rather than active implementations.
Karcher expects that Google will retain the advantages of cost and affection--based on Forrester's research, he said, "Google Gmail and Docs, in terms of popularity, just blows Office Web apps out of the water."
Geiger echoed that assessment, noting that people at McClatchy were very excited about the move to Google Apps and that among the hundred or so email messages he has received about the decision, the overwhelming number expressed support and only a few voiced concerns.
Unfortunately for Google, corporate IT buying decisions tend not to be decided by popular vote.