Google updates office apps, papers say they attack Microsoft

Both the Wall Street Journal and InformationWeek have reported that Google launched a premier version of their Google Apps service. The Google web site has been updated to show the new premier service at a cost of $50/user/year. One thing I do not see is whether the premier version is ad-free or not. So far most of the comments I have heard are very positive for the service.

This new offering is targeting small businesses who want to cut the costs from the more expensive Microsoft Office applications. I don't see large corporations going with this just yet. Will large companies (i.e. Walmart, P&G, Toyota, etc.) be willing to put their sensitive data and documents outisde their firewall?

See below as Google states that GE has tested the new service. I can see companies using this new service as leverage when renewing contracts with Microsoft. That's probably how it will hit the MS pocketbook the hardest.

From InformationWeek: Google Apps Premier Edition, unveiled Thursday, features online e-mail, calendaring, messaging and talk applications as well as a word processor and a spreadsheet. The launch follows Google's introduction of a similar suite aimed at consumers last August. The new Premier Edition, however, offers enhancements aimed squarely at corporate environments.

"Businesses are looking for applications that are simple and intuitive for employees, but also offer security, reliability and manageability," says Dave Girouard, VP and general manager for Google Enterprise.

From the WSJ: Google says test users of its new Google Apps Premier Edition include blue-chip companies like General Electric Co.

There is one thing to consider. When a company purchases Office, they can do what they want with it (basically). When a company uses an app like Google is providing, they have to agree to the terms Google wants. For example:

3.3. Suspension and Termination of Accounts. Google reserves the right to suspend or terminate End User Accounts in response to a violation or suspected violation of any applicable terms of use or policy.

So its 3am, you are trying to finish a company memo, something (error or not) flags the Google system, you are now "suspended" and all content is locked (I guess, terms do not discuss this part). While I don't see it happening often, I could see a mistake here and there.