Tie-up boosts Google's corporate credentials

Web-based productivity applications will take a stride towards enterprise acceptance today when Capgemini announces services capabilities designed to take the Google Apps suite into blue-chip companies.

Google’s tie-up with one of the biggest names in business technology consulting is a sign that the time could be right for web-based programs to address everyday office automation tasks across large enterprises and go beyond established domains such as customer relationship management.

Google Apps includes word processing, spreadsheet, calendar, email, instant messaging and IP telephony tools. Capgemini will offer services based on the Google Apps Premier Edition, which includes APIs for hooking into business infrastructure, 10GB of email storage per user, a 99.9 per cent email uptime guarantee, blocking of context-sensitive advertising and 24x7 phone support.

Google currently charges $50 per user account per year for the Premier Edition. Capgemini will provide deployment, helpdesk, integration, security and archiving services aimed at companies with 2,000 seats and upwards.

Capgemini said Google Apps could give access to collaboration software for employees in fields such as retail, distribution and manufacturing that currently have limited or no tools.

“About 48 per cent of all workers still don’t have access to email,” said Richard Payling, Capgemini sales channels director. “CEOs would like to connect them but haven’t been able to afford to.”

Payling said that the ability to collaborate with supply­chain partners via online applications will be attractive and added that there is also an opportunity to take on the dominance of Microsoft because “only the top 15 per cent of Office users need the full functionality”.

Although the Windows/Office combination has retained its duopoly on business desktops despite many challenges over the years, the combination of Google’s mass and Capgemini’s inroads with large European companies could make this a real threat.
“This partnership with Capgemini provides both vendors with significant credibility,” said Forrester Research analyst Ray Wang. “Google gains a trusted adviser to large enterprises looking at rightsourcing email operations. Capgemini gains credibility as a vendor providing Web 2.0 and cutting-edge solutions.”

Despite the excitement around web-based working, leading consulting firms have mostly steered clear of the phenomenon so far. Forrester’s Wang said that should definitely change but others doubt the appetite for engagements that challenge traditional models.

“I don’t believe the Big Five-style firms have the financial structures in place,” said John Appleby, chairman of Saaspoint, a consulting company focused on the Salesforce.com platform.

However, firms unhappy with Microsoft’s pricing and auditing could be interested in Google Apps, at least for satellite offices or special project groups where cost is an important factor. Some will also see a discussion with Capgemini as a bargaining tool when negotiating with Microsoft.

“This may have an impact on Microsoft as we tend to see [European] clients looking for an alternative to Microsoft,” said Forrester’s Wang. “The pricing is very cost competitive.”

Google enterprise sales manager Robert Whiteside said Apps customers already include big names such as GE, Procter & Gamble and L’Oréal.