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

What is your preferred mobile platform?

View Results

Loading ... Loading ...

More News

IT guy hijacks website, blackmails client in SA

IT professional

An IT specialist was fined R6000 or six months in jail by a Cape Town court on Thursday, 31 July 2014, for trying to extort a client who swore at him

Smartphone users at risk of password, data theft

Nokia X Android smartphone range

Security researchers have revealed two separate threats this week they say could put up to 90 percent of the world’s 2 billion plus smartphones at risk of password and data theft

New MTN SA CEO appointed

Ahmad Farroukh

MTN has announced that Ahmad Farroukh is replacing Zunaid Bulbulia as CEO of MTN South Africa

Telkom ADSL speed upgrade: cautious optimism

broadband speed

South African Internet service providers weigh in on Telkom’s possible ADSL speed upgrades

Free MyBroadband Newsletter:
Subscribe
X
bool(true)