More on GoogleTini…(Google/Postini Acquisition) by Way of Shimel’s Post
Y
esterday’s post regarding my prognostication of the Google/Postini M&A activity yielded a ton of off-line feedback/opinion/queries. I had three press/analyst calls yesterday on my opinion, so either I’m tickling somebody’s interest funny bone or I’m horribly wrong 😉
Either way, Alan Shimel piped up today with his perspective. It’s not often I disagree with Alan, but the root of his comment leaves me puzzled. Alan said:
I do not think that Google’s acquisition of Postini is a shot across
the bow of Microsoft. I think Google goes about its business of
delivering on its vision. I think its vision is rather simple really.
Google believes that the future belongs to Software as a Service
(SaaS). As part of their SaaS strategy, they need to secure their web
based apps, as well as offer security as a service. This is not really
much different than Microsofts "Live" program, also a Software as a
Service play. That is where the competition is.
It appears that Alan’s really re-stating what I said yesterday regarding SaaS and especially as I highlighted the security aspects thereof, but his statements are strangely contradictory in the scope of this single paragraph.
To wit, if Google is indeed focused on SSaaS (Secure Software as a Service) and they’re looking to displace at least for certain markets traditional "Office" applications which are Microsoft’s cash cow ($12B business?) how is this not a "shot across the bow of Microsoft?"
Further, if Microsoft is engaging in SaaS with Live, then it further underscores the direct competitive model that demonstrates that Microsoft (et al.) are firmly in the target hairs.
What am I missing here?
/Hoff
(EDIT: Added a link to an interview I did with TheStreet.com here.)
Google's Postini-foot in Microsoft's door – businesses
I read Alan's assessment of Google's acquisition of Postini and decided I really can't give him a pass on this one. I have to take the other side of this argument. Postini and Google is all about Google getting into
Hoff – I've got leave the Shimel-reservation and join sides with you on this one. I think Alan just had too much Florida sun or something. Go figure – he's allowed one every once in a while. http://mitchellashley.typepad.com/the_converging_…
I think this just goes to show how important online security is and the only way to attract business users is to offer the best security available.
I do think that this is a shot at Microsoft and Microsoft should be concerned.
Chris – sorry but I did not see your original post before I wrote mine. Yes your ASP stuff is similar to SaaS. What I meant is that Google does not look at acquiring a Postini as a way of depriving Microsoft of acquiring them (as was said about the DoubleClick deal), rather I think it is just Google executing on their plan. Which is to displace traditional software with SaaS. That can be seen as taking on Microsoft, as they own the traditional software business to a degree, but Microsoft or Oracle or any software company is plainly in their sites. What I see as the real Microsoft vs. Google play though is Microsoft moving to the SaaS model as well with their "Windows Live" stuff. Then it will truly be MSFT vs Google, head to head in the SaaS market. That is really the next battle, not SaaS replacing traditional software. That transition is already under way.
Hope that makes sense, you know how upset I get when you and I disagree 😉
I think your analysis, as far as it goes, is right on.
I am curious about how this clean pipe service will be priced. Google doing a better job at what Postini does today because of brains and scale is nice, but how much will that affect price?
How will Google leverage things other than their unequaled ability to execute in order to make this clean pipes even more compelling?
Chris,
are you asking about Clean Pipes in general or in respect to Google? The way in which Google might monetize this is as a subset service of delivering content — with all the traffic prioritization, targeted ad delivery, etc…security might (as some suggest) be the cost of delivering content.
The notion of clean pipes really means different things to different people. The next generation of networks/network security will bring a very wide set of service differentiation that is much more robust than today's general offerings.
Check out the Clean Pipes post I wrote about earlier: http://rationalsecurity.typepad.com/blog/2007/05/…
Thanks,
Chris
I hear ya man, I think I may have misunderstood a bit too. Either way, any disagreement from me is loving disagreement! 🙂 I'm fully in agreement that Postini opens new areas and Google Apps is going to be influential. Even I am using it for my terminal23.net email service now.
No worries! Every disagreement is a loving one by default, unless it comes from Ptacek! (j/k)
I use Postini myself. Works nicely.
/Hoff