Google Apps for small businesses

The IT infrastructure is the key enabler for any business today. Whether it is an Entrepreneurial venture or an established corporation, having proper IT infrastructure (mainly email accounts, website and other collaborative tools) is extremely critical to run the day-to-day activities. Maintaining the IT infrastructure with high investment may not be affordable for businesses which are in bootstrapping (startup) phase. Google has come up with 'Google Apps’. Fore more details and check out the 'Overview presentation'.

What Google has done different here?

• It has moved the initial IT setup work way from the business and made it available as an ‘on-demand’ application from the Internet.
• Added support for integrating Google’s popular applications (like Gmail, spreadsheets, calendar etc...) to the domain-name of the business.
• The whole package comes for free with guaranteed uptime of 99.9%. However for premium versions are charged additionally.

I feel this would be another killer application from Google. The main problem startups face is the cost and they may not be able to afford applications in hardware (servers) and software (like MS office) right from day one. Also, by making it available on the web, it’s been made independent of operating system.

How do Google make money from this?

Google makes money when the user clicks the sponsored advertisement.

My prediction – By offering Google Apps to small businesses, Google has opened up new avenues for contextual advertisement. For example when the user is reading the official, by having contextual advertisement displayed can increase the probability of clicking the sponsored link.

Whatever Google's strategy it may be, this is really a good application for startups which are in the ’bootstrap' mode.