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Google's Marketplace Spells Trouble for Microsoft

By Chelsi Nakano  | Published Mar 10, 2010   Comments  5 comments

Google set off an enterprise-tastic bomb last night when they announced the opening of Google Marketplace, an online store for business apps. Now, we can’t help but wonder, is Microsoft an impending casualty?  

The Strip

We noted Microsoft’s attempt to be “the very best option” for cloud lovers late last year when they announced their app marketplace for Windows Azure. Dubbed PinPoint, the online store helps users find related experts, applications and professional services.

In addition to PinPoint, Microsoft released an information marketplace called Dallas. This part of Azure is designed to provide developers with content (data, imagery, real-time web services) from third-party providers through clean, consistent APIs. It’s the same idea as Salesforce's AppExchange and Apple's infamous iPhone App store.

Imagine all those little stores residing next to each other in a virtual strip mall. Combined, they form what is undoubtedly the largest directory of IT companies and their offerings we’ve got. Now, picture a Texas-sized, G-shaped supermarket dropping right down in the center of it all.

Google’s Mega Outlet

Google's marketplace will connect developers with their whopping 25 million Apps users and the 2 million businesses that have gone Google. Better yet, from what we can tell, the store is simple and straightforward. Here are some high points from the presentation:

  • Google says everything businesses need is now in the cloud
  • Developers don’t have to use App Engine to build—you can use whatever you want
  • Google asks for a one-time fee of US$ 100, and a 20% rev share
  • Big G already has Over 50 launch partners, including Zoho, Box.net, Atlassian and Aviary

And, a short explanatory video in case you haven't seen it already:

 

 

This is nice compared to Microsoft which splits its market into two sectors, and even Salesforce.com, which forces you to build your apps on their platform. 

Microsoft, Oh, Microsoft

This is the second time Google has stepped on Microsoft's toes in the last handful of days.
The first was G's acquisition of DocVerse, a startup that allows people to collaborate with MS Office documents online. 

“The future of productivity applications is in the cloud,” wrote Google Enterprise marketing specialist, Ellen Petry Leanse, on the company’s official blog. “…we recognize that many people are still accustomed to desktop software. So as we continue to improve Google Docs and Google Sites as rich collaboration tools, we’re also making it easier for people to transition to the cloud, and interoperate with desktop applications like Microsoft Office."

Microsoft is doing what it can (moving to the cloud was one of the most popular topic's at the SharePoint 2009 Conference in October). For starters, the new SharePoint Online—a solution similar to today's SharePoint Online, but for internet websites— is slated to come out with SharePoint 2010. 

How much do you want to bet Microsoft will announce a marketplace for SharePoint Online sometime in the near future?

Until then, do you see the Google Marketplace as the very best option? Does Microsoft stand a chance? Let us know what you think. 

 
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5 Reader Comments

1 | Jason — March 10, 2010 3:17 PM

”**Ouch**” says Microsoft. This seems very familiar to the App Store Pattern that the iPhone rolled out so successfully. Google Apps is so useful and simple to use. This is a gold-rush for web developers like me.

2 | Daniel Morris — March 11, 2010 1:21 PM

I think a lot of people think like this:
Microsoft = Desktop
Google = Cloud/Online

3 | Web Design Kent — March 12, 2010 4:58 AM

I think this is the next step in Google's vision when it developed Google Chrome browser. Google is definitely going after a piece of Microsoft's pie and I think it starts with the average user where they won't need the full capabilities of ie a MS Office Suite, but need some of the basic features. Exciting developments ahead!

4 | Chris — March 15, 2010 4:46 PM

This is perfect. Google will open its entire user's, user's connected friends and user's data to a developer network. Google will become another infested Facebook.

These 50 partners were already around before Google considered them to be a part of this network. People already knew about them, and the majority still doesn’t use them. For example, if Firefox is so much better why isn't EVERYONE using it? MSN.com was a default homepage for many, but many choose to use Google search anyway. So why aren't businesses leaning away from Microsoft's business solutions?

Before you write a sentence about a company's product you must get your facts straight. I've use WSS 3.0, MOSS 2007 and SharePoint 2007 Online and there are major differences between all three of them. MOSS is the full course meal, WSS is an appetizer, and SP Online is the happy meal. Each targeted for different customers large and small with different long/short term needs. Every business using or wanting SharePoint will not get SharePoint Online.

Google Apps is a joke in comparison to Microsoft Online Business Productivity Suite, like comparing a screw driver to a power tool. Another example, Google (google.com/accounts/PurchaseStorage) offers businesses 20GB for $5 a year, and it integrates with Google apps. Microsoft (skydrive.live.com) offers 25GB for free that integrates with desktop/online office. That's an easy decision for businesses during budget time, with say 2000 employees. SharePoint 2010 comes with web Office built in, and SharePoint Online customers get free suite upgrades.

So explain to me why Google business solutions are a better choice, when I'm getting more for less with Microsoft? The popular software has a larger quantity of trained professionals, who can work faster than staff untrained with unpopular software.

No company will stay on top of their market forever, but this ridiculous article is as premature as your knowledge for the software business industry.

5 | Marion — March 16, 2010 2:01 PM

@Chris

Sharepoint is messy. Navigation is confusing. Maybe it's not setup correctly in our environment, but I avoid using it if I can. Just my thought.

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