Google Inc. (
), the world's most popular Internet search engine provider is
making efforts to expand revenue beyond its core advertising
services. Small businesses, which have been using the free
version of Google Apps software so far, will now have to pay for
the web-based office productivity suite.
Google Apps is a cloud-based productivity suite that helps
people to work from anywhere on any device. Google Apps software
includes email, word processing, spreadsheet and presentation
Following the new move, businesses will have to bear a charge
for using Google Apps Software. The company stated that firms
with 10 or lesser number of employees will now have to pay $50
per user per year, the same amount that larger businesses pay for
the apps. Individuals will still be able to access the free
version of the products including Gmail but will be deprived of
the additional services that the premium version offers.
Recently, Google said that its apps are used by more than 5
million businesses. Though the company has not disclosed the
revenue generated by its enterprise business, it expects it to
become an important part of Google's overall business going
Google is a market leader in online advertising and it has
been exploring various ways to increase its revenue beyond its
core business. We believe this is Google's latest move to
increase its revenue in the face of cut-throat competition.
Google delivered a strong third quarter, with gross revenue
touching a record $14.10 billion. Revenues, from both
Google-owned and partner sites, continued to grow in double
digits on a year-over-year basis. Historically, Google has always
fared better than
) search, which has been struggling for survival and
) Bing, which is yet to gain critical mass.
However, legal entanglements related to competitive matters or
patent infringements remain an overhang. Currently, Google
retains a Zacks Rank #3 (Hold).
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