Microsoft went one up on Google Apps with a Gmail spoof video which has been doing the rounds. Titled the "Gmail" man, depicting a snoopy postman who likes to read people's mail, Microsoft has targeted Google's policy of scanning Gmail users mail to serve up relevant ads. Microsoft has kept mum about producing the video, but it is quite obvious to most that it is an MS production.

The video is very witty, and certainly worth a watch. Everyone is waiting with bated breath to see how Google responds. It did its own "Gmail intervention" video, but that is limp, and doesnt seem to be a direct response. See the video below and get a few chuckles. 

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One sometimes needs to take a step back to get a clearer perspective of things. Till a few years back, Microsoft wouldn't so much as acknowledge Google's existence in the enterprise space. Now it has a page up on its main site, painstakingly explaining how Office 365 is better than Google Apps.

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One cant help but giggle in glee when the gorillas of tech, Google and Microsoft, fight it out. It is THE tech battle of our times. The fights have been growing particularly vicious over the last month around the time Microsoft released the public beta of Office 365, the rebranded version of BPOS, its online communication and collaboration suite. Although Google does not have a substantial presence in the business market yet with Google Apps, Microsoft sees it as a big threat in the future, which explains its recent attempts to thump down Google's products. 

Punch 1) Microsoft accuses Google of lying about Apps for government. This can be seen as Microsoft's revenge for the Google Apps suit last year, where it sued the Department of Interior for allegedly giving Microsoft an unfair advantage in its bidding process. Google went on to win an injuction in that suit. One of Google's points was that Microsoft's solution lacked FISMA, the security certification required the government for government contracts. Waiting for a chance to bite back, earlier this month, Microsoft accused Google of lying about having FISMA for its Google Apps for Government. 

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The web productivity / collaboration / workspace / office (call it what you may) market never fails to confound me. It is perplexing to try and make out who is collaborating with who, and with what product.

Anyway, first things first.

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If anybody had any doubts about the Google Apps vs. Microsoft BPOS battle being serious, read this. Google has sued the US Department of Interior, for allegedly favoring Microsoft while setting bid conditions for a government contract. Google has accused the DOI of floating a Request for Quatation (RFQ) seeking to replace the Department's disparate email and collaboration systems, which excludes Google Apps, and favors Microsoft's Business Productivity Online Suite.

Google has called the RFQ "unduly restrictive of competition" and that it was “arbitrary and capricious, an abuse of discretion, and otherwise contrary to the law.” The RFQ clearly states, that the solution should be "part of the Business Productivity Online Suite", which is Google is so worked up about. Before approaching the Court, Google approached the DOI even before the RFQ was floated, but was rebutted.

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office 365 zoho google apps hyperofficeDuring the run up to Office 365's launch, the market expected Microsoft to roll up Office Web Apps in Microsoft BPOS. Then the launch happened. A new product Office 365 was announced. “Office 365 is the best of everything we know about productivity, all in a single cloud service,” said Kurt DelBene, president of the Office Division at Microsoft. And that this was the ""biggest commitment Microsoft has ever made" in bringing customer infrastructure into Microsoft data centers. Woaw!

So what is Office365?

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One of the hardest figures to find anywhere, are the relative market shares of vendors in the messaging and collaboration market. I have split many hair ends trying to find the market share of MS Exchange in the messaging market, Google Apps in the collaboration market and so on.

There is extensive media coverage when Google Apps scores this win or that, or crosses a certain milestone in its user count (it recently crossed 3 million customers and 30 million users); and equally frenzied coverage when Microsoft BPOS gets a new enterprise customer, or crosses a certain landmark.

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Google Apps Interest Over Time

It makes sense to periodically keep track of the market interest in Google Apps. Google Trends is a good way to do this. Google trends gives an indication of the number of searches that have been done for a particular key term – in this case "Google Apps". The more the searches for a key term, the more end users, CIOs, small businesses, analysts, journalists are searching for it. It may also be seen as a crude indicator of the expected long term success of the product represented by that key term.

Below is the trend for Google Apps. I have also included Microsoft BPOS, to measure the relative interest of the business market in the two brands.

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August proved to be a busy month, as Google Apps continues to churn out bountiful new enhancements and features. The rate of innovation at Google just keeps on speeding up, as it decisively proves the benefits of software-as-a-service to businesses. Microsoft, with Office Web Apps, seems to drag in contrast, its enterprise legacy seemingly in tow. 

Google Apps August Updates

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Andrew Gradwell is the director of cloudhypermarket.com a one stop shop specializing in cloud-based IT services. They provide an in-depth comparison and advice on the costs and features of a wide variety of services from all the major vendors.

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