Wednesday, July 11, 2007

Google in the Entreprise: Postini and Sugar??

Official Google Blog: Welcome, Postini team

A lot of analysts felt the threat that Google is brining into Microsoft main segment (Desktop Applications). With Postini Google got 10 million enterprise users for $625M only which means $62.5/user which less than 20% of what TD bank is paying to acquire a new individual client.

Is this a real threat to Microsoft? Not currently because this company is very small compared to the behemoth that Microsoft represents. However this is a sign only that Google has been working into this market for a while shopping for correct targets. Based on my experience when I was following the IT acquisition of Google, I expect that the huge shot is on the way and we would see Google putting at least $2 billions to acquire one of the most successfully enterprise management startups.

Google put $1.5 for Youtube which did not have a clear revenue model. So imagine how much they would pay for a company that would bring at least a billion dollar yearly.

Why I expect Google to acquire Sugar CRM?
Simple, Google is supporting a lot of the open source activities and Sugar has established its position is the throat cutting market of CRM applications. The beauty of CRM is the coherence with Google in the development culture and the coincidence that it is aligned with the line of business Google is targeting.

When this might happen?
I expect it to jump up around early 2008.

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