The Wall Street Journal
Google Inc. is preparing to launch a store selling online business software that integrates with its Web services, according to people briefed by the company, enlisting software developers in its battle against Microsoft Corp.
These people said the store will sell business software designed by outside developers to integrate and add capabilities to Google Apps, such as enhanced security features or the ability to import contacts. Google Apps provides Web-based email, word-processing and spreadsheet functions. Google could announce the new store—a revamped version of its Solutions Marketplace site that features third-party programs—as soon as March, they said.
Google eventually plans to allow customers to purchase its partners' software through the site, taking a cut for itself and sharing some revenue with the developers, these people said. Google will allow users to quickly access their purchased applications through the menu at the top of their screens within Gmail or Google Docs, they said.
A Google spokesman said the company is "constantly working with our partners to deliver more solutions to businesses, but we have nothing to announce at this time."
Google's goal is to jump-start the growth of its online-software businesses, which it hopes will be a future sales engine for the company as its advertising business matures. The new store represents its latest attempt to get customers to switch to its online offerings and away from Microsoft programs.
The approach has its risks. Third-party software could be less reliable than Google's, leading to customer-service complaints. And how much time and effort developers will invest in new services remains unclear.
Google sells a suite of services such as task management software to businesses for $50 a user per year. While it has landed some high-profile customers such as Motorola Inc. and Genentech Inc., many large corporations have been reluctant to migrate from Microsoft for reasons ranging from concerns about storing data online to complaints of missing features.
Google says more than two million businesses are using the paid or free version of Google Apps. There are around 500 million users of Microsoft Office, according to Microsoft.
Google is turning to developers to help fill the holes and develop features its online software lacks, such as specialized editing software or tools to access online files offline.
The new store borrows a page from other technology companies including Apple Inc. and Salesforce.com Inc., which have tried to broaden the appeal of devices and software by opening up to outside developers. Salesforce operates AppExchange, which links to software that extends the functionality of its customer relationship management software.
Google eventually plans to allow customers to purchase its partners' software through the site, taking a cut for itself and sharing some revenue with the developers, these people said. Google will allow users to quickly access their purchased applications through the menu at the top of their screens within Gmail or Google Docs, they said.
A Google spokesman said the company is "constantly working with our partners to deliver more solutions to businesses, but we have nothing to announce at this time."
Google's goal is to jump-start the growth of its online-software businesses, which it hopes will be a future sales engine for the company as its advertising business matures. The new store represents its latest attempt to get customers to switch to its online offerings and away from Microsoft programs.
The approach has its risks. Third-party software could be less reliable than Google's, leading to customer-service complaints. And how much time and effort developers will invest in new services remains unclear.
Google sells a suite of services such as task management software to businesses for $50 a user per year. While it has landed some high-profile customers such as Motorola Inc. and Genentech Inc., many large corporations have been reluctant to migrate from Microsoft for reasons ranging from concerns about storing data online to complaints of missing features.
Google says more than two million businesses are using the paid or free version of Google Apps. There are around 500 million users of Microsoft Office, according to Microsoft.
Google is turning to developers to help fill the holes and develop features its online software lacks, such as specialized editing software or tools to access online files offline.
The new store borrows a page from other technology companies including Apple Inc. and Salesforce.com Inc., which have tried to broaden the appeal of devices and software by opening up to outside developers. Salesforce operates AppExchange, which links to software that extends the functionality of its customer relationship management software.
