Capgemini To Offer Its Customers A New Option -- Google Applications
Google has found an ally to help it challenge Microsoft (NASDAQ:MSFT) in the desktop services market.
Capgemini, a global consulting company, is slated to begin marketing Google's GOOG office software services on Monday to thousands of its customers worldwide.
The Web's search leader is trying to build a business around Google Apps -- a set of business services that offers many of the features found in Microsoft's MSFT Office software, including text documents, spreadsheets and e-mail. Instead of installing software on their own computers, though, Google Apps users store files on Google's servers, so they're available anywhere there's an Internet connection.
Google offers the services free to consumers and sells a premium version to companies that has more online storage and technical support.
Most paying customers of Google Apps have been small businesses. Capgemini aims to help Google take the concept to next level, says Steve Jones, head of Capgemini's service-oriented architecture unit.
"This is not about delivering these services to mom and pop shops; it's about delivering it to the Global 2000," he said.
Teaming with Capgemini serves another purpose for Google, says Ray Wang, an analyst for Forrester Research. (NASDAQ:FORR)
"This move is squarely aimed at Microsoft," he said. "Google went out and found some trusted advisers with relationships with the enterprise market who have been providing these services already -- it's another way to attack this market."
Google launched Google Apps last year and followed up in February with the $50-per-year premium version, which offers 10 gigabytes of e-mail storage and other features. So far, more than 100,000 companies worldwide use either the free or paid versions of Google Apps.
Google is hoping that Capgemini can sell the service to a new audience, says Kevin Smith, head of Google's enterprise partnerships.
"They have a global presence, a trusted adviser status," he said. "Having Capgemini aboard will help bring those features to companies of a certain size."
It's the first time Google has teamed up with another company to help sell Google Apps. But it might not be the last, Smith says.
The company wants to build a network of partners large and small to offer a range of products and services to different types of customers.
With $10.2 billion in revenue in 2006, Capgemini is roughly the same size as Google. Its customers run the gamut from professional services provider PricewaterhouseCoopers to Global Pharmaceuticals, a drug company.
Many of those customers use desktop software from companies including Microsoft.
Capgemini will examine each customers' communications systems and suggest changes if necessary.
The Capgemini deal came about almost by accident, Jones says. The consulting firm had approached Google about offering an enterprise search product to customers.
"We started talking to them about search, and they asked us if we could do anything with Google Apps," Jones said.
Google will pay a commission for each paid Apps customer the consulting firm signs on. But neither company is saying how much.
Despite the financial incentive, Jones says his company won't push Google Apps onto customers.
"We are not a software reseller," he said. "If this was software reseller agreement, we wouldn't be interested in it. Companies pay us to get the right services for them -- that is where we make our revenue."
Even when it recommends Google Apps, he adds, that won't mean dumping Microsoft or other wares.The goal is to see whether Google's software can make companies more efficient -- and save them money.
By : Sep. 10, 2007 (Investor's Business Daily delivered by Newstex)
Keyword : Google Applications
