I just got my copy of this week's Businessweek and had to read the cover story on Google's Next Big Dream. It's about how a 27 yr. old software engineer is leading their charge into cloud computing, where computing is done by a "cloud" of computers rather than by individual PCs or servers. Google is not alone in investing in this, as companies like Yahoo!, Amazon and IBM are all have their heads in the clouds. In fact Google and IBM are working together on this one, probably because of the other company investing heavily in cloud computing....Microsoft. You should check this article out when you have a minute as it looks like all of our futures are going to be a bit cloudy at some point.
Another article you should check out is in today's New York Times - Google Gets Ready to Rumble with Microsoft. I became aware of this one after reading Anita Campbell's post over at Small Business Trends. The cloud theme is carried over into this article, as Google's CEO Eric Schmidt believes that as high speed internet access proliferates and gets increasingly faster, and internet software gets better, more and more people will welcome using software over the web, instead of installing it on personal computers many people still feel are too complex to maintain. That's why Google is cranking out new apps all over the place, like GMail, Docs and Spreadsheets, Google Talk, and many, many others. And of course Google Apps for Domains which is Google's stripped down answer to Microsoft Office. Now in all actuality the feature-rich Office has way more functionality than any of the Google counterparts, and a better comparison at this time would be with Microsoft's Office Live. But you gotta believe that the goal here is to build feature-rich internet software that competes with installed stuff, so the end game has to be to deliver as much functionality as possible, which means installed Office. And I'd be willing to bet Microsoft will be adding more Office functionality to Office Live, which does present some issues as Office Live is a lot cheaper than regular Office.
So Google is going after Microsoft with frontal attack of SaaS. But one thing Microsoft has is the one thing Google doesn't as of yet. And when you think of SaaS or On Demand or whatever you want to call it, you think of CRM, because CRM has literally been the poster child for this movement, particularly when it comes to "the business web". In fact Salesforce.com, the poster child of on-demand CRM, proves this out. In a recent article, Salesforce.com CEO Marc Benioff noted that it took them seven years to reach 500,000 paid subscribers, but only 16 months to get the next 500,000. And Microsoft is rolling out Dynamics Live CRM, the SaaS version of its CRM application. Now I haven't seen it as of yet (I will be getting a briefing and demo shortly and will report on it) but folks I trust have told me it really looks good, and should get serious consideration by companies looking to implement CRM.
Now Google does have a great deal of momentum going for them, but I think this could be a big omission by Google, not having a CRM answer in their duel with Microsoft. More and more, businesses are turning to CRM to help automate lead generation and qualification, as well as streamline the sales process to turn qualified leads into cash money as quickly as possible. And with CRM vendors beginning to integrate Web 2.0 components into their services, CRM is really about to hit the mainstream. Just think the business network Salesforce.com is beginning to unleash with Salesforce-to-Salesforce. Concursive (formerly CentricCRM) is also doing this. And to be sure this is just the beginning as Web/CRM service integration is a perfect match which businesses of all sizes need as soon as possible.
This is shaping up to be an awesome battle. So I think it only makes sense for Google to fully arm themselves in this fight for the ages. It's not too late to for them to change this. Last year about this time I predicted that Google would by a CRM company. They didn't but they did cozy up with Salesforce.com to allow folks to manage AdWords campaigns from within the CRM app, as they did with NetSuite. But it makes even more sense to pull the trigger this year, especially with Microsoft getting their act together with Live CRM. So maybe I was just a bit early with my prediction. Maybe they were just waiting for Salesforce.com to nail down that one-millionth paid customer to prove that SaaS is here to stay in the business world. If this were to go down, the fight would REALLY be on!
Technorati : cloud computing, crm, google, microsoft, saas
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