Google to start charging SMEs to use web apps

Google Inc will no longer offer its Web-based office productivity software free to small businesses, the Internet company’s latest move to expand revenue beyond its core advertising services.

December 7, 2012
google_black

Google Inc will no longer offer its Web-based office productivity software free to small businesses, the Internet company’s latest move to expand revenue beyond its core advertising services.

Google said on Thursday that businesses with 10 or fewer people will now need to pay $50 per user per year – the same rate that larger businesses pay – to use its Google Apps software which includes email, word processing, spreadsheet and presentation tools.

The change will let Google offer a more consistent service to business customers, the company said in a post on its company blog.

“Businesses quickly outgrow the basic version and want things like 24/7 customer support and larger inboxes,” Google said.

Individual consumers will still be able to get a free version of many of the products, such as Gmail, Google said. And existing business customers who use the free version will continue to get it for free, though they will not receive the additional services included in the premium version.

More than 5 million businesses use Google’s Apps, Google said earlier this year, though it did not distinguish between customers who use the free or paid versions.

The move marks the latest change to Google Apps, which until 2011 was available for free to businesses with 50 or fewer people.

In June, Google launched the Google Compute Engine, which provides online computing services to a limited set of customers.

Google, the world’s No.1 Web search engine, generates the bulk of its revenue from online advertising.

Google does not disclose the revenue that its so-called enterprise business generates, but the company has signaled its hopes that it will become an important part of Google’s overall business. In July, Google Senior Vice President and Chief Business Officer Nikesh Arora described the enterprise business as a “future growth engine” for Google.

Related articles

iTunes vs Google Play vs Zune vs Nokia vs BlackBerry

iTunes music store in SA

App Store games in SA “soon”?

DStv BoxOffice Online exits beta

Wabona video-on-demand beta in SA

Tags: Active, Google, web apps

Free Email Newsletter:
Subscribe

Shutterstock is the image partner of MyBroadband – technology images can be found here

Join the conversation

Connect with MyBB

twitterfacebookandroidappleblackberrynewsletterfeed

Poll

Will you make voice calls via WhatsApp when the service becomes available?

View Results

Loading ... Loading ...

More News

Google Play gift cards now in South Africa

Google Play Gift Cards

Google Play gift cards are now available in South Africa from Pick n Pay and Checkers

DStv vs Node vs Vidi: SA on-demand video shootout

Video streaming creation tablet

How do South Africa’s video-on-demand offerings compare to one another (and iTunes and Netflix)?

Altech Node hands-on

Altech Node press shot — front

Here’s what you can expect from Altech’s foray into on-demand video

Apple blocks access to users’ accounts

The five colors of the new iPhone 5C are seen after Apple Inc's media event in Cupertino, California September 10, 2013.

Apple unveiled new policies that block its access to users’ mobile devices, even with a warrant, the tech giant revealed late Wednesday

Free MyBroadband Newsletter:
Subscribe
X
bool(true)