Google wants to attract users of Microsoft software – Management Journal

Google announced that let you use your own packaging, “Google for Work” free of charge to users who have a contract with Microsoft or other vendors.

Google tightened its attacks on the lucrative package Microsoft Office programs, it reported Monday, in an attempt to beat his old rival where it hurts. The target are companies and government agencies that pay for work with word processing, e-mail, calendar, spreadsheet and other Office programs.

If you leave Microsoft, Google will allow them to use without cost his own parcel, which usually costs $ 5 to $ 10 per user per month.

“Google for Work” software will be free for as long as customers have a contract with Microsoft or any another provider. The offer will be open the next six months in the United States and at some point be extended to other countries.

Google is limiting free use 3,000 people deserter customer. Even with this restriction, the company expects 180,000 to $ 360,000 in annual revenue if a company with 3,000 people accepted the offer.

As an additional incentive, the company offers a payout of up to $ 75,000 to each company change your software to cover the cost of making the change.

Google, which is now owned by a newly formed company, called Alphabet Inc., would not say how much is budgeted for this recent attack against Microsoft Corp. google estimates that more than 600 companies have at least 10,000 employees using Work.

the offer demonstrates the confidence that has google on the quality of its software and is determined to hit one of the most profitable franchises of Microsoft, said Jim Lundy, an analyst at Aragon Research. The expert estimated that currently Microsoft customers pay $ 12 to $ 20 per user under contracts lasting several years.

Office generated 23,500 million dollars to Microsoft, nearly a third of company revenue software, in the fiscal year ended in June.

digital advertising continues to represent virtually all income from Google, which totaled 66,000 million dollars last year. The company based in Mountain View, California, has used part of the money to subtract Microsoft domain you have in the office software since introduced a number of rival programs nearly a decade ago.

Mexico eCONOMIST
Red Iberoamericana Economic Press ( RIPE )