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Original: 2/28/2008 5:03 AM
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Thursday, February 28, 2008

Is Google Apps the Next Microsoft Office?

 

If you’re still skeptical about Google Apps and software as a service (SaaS), spend a day at Long Island’s Hofstra University. Roughly 13,000 Hofstra students have access to Google Apps Education Edition to collaborate online, according to Robert W. Juckiewicz, Hofstra’s VP of IT.

The university’s ongoing experience with Google and SaaS — and Hofstra’s future goals — provide some clear hints about how the corporate software market may evolve to increasingly include Google.

Nobody is predicting the death of Microsoft Office, but it’s clear that Google Apps and Microsoft’s desktop productivity suite are on a long-term collision course.

Nobody is suggesting that universities running Microsoft Office will pull the plug on that desktop suite anytime soon. After all, Office provides a far more comprehensive feature set than Google Apps. Plus, students don’t have to be connected to a network to access and use Office.  Assuming the offline capabilities arrive this year and work as advertised, Google Apps will become at least a partial replacement to Microsoft Office over the next two to four years, predicts a Texas college CIO, who requested anonymity.

But Google's SaaS efforts go far beyond productivity applications. Online storage could also become a commodity within the Google Apps framework.

The challenge for investors is to understand how SaaS services from Google and others will eventually meld with so-called managed services.

Short term, keep an eye on Google's SaaS moves, and their potential impact on Microsoft. Longer term, it's logical to expect some of those smaller managed services firms to launch IPOs or seek acquisitions within the next two to three years.

Source:seekingalpha.com/article/66405-is-google-apps-the-next-microsoft-office

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