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Google is learning the reality of free

Has Google realized that if you live by free, you die by free?

Financial trends and news by Mark Cuban
July 9, 2009 | Comments (1)
Short URL: http://vator.tv/n/94f

 Great catch from the folks over at TechCrunch. In their post “What the hell happened to the free version of Google Apps” ,   they take note that Google is doing everything possible to channel new users of Google Apps to the paid version.  This apparent shift in Google strategy regarding free raises some interesting questions:

1. Google is building a significant reseller channel.  The channel is responsible for selling into corporate accounts.  Obviously resellers of Google products don’t want to compete with free from Google. Which raises the question, “What is the better platform for selling into corporations, the web or direct sales ?”. 

2. Is Google now following the MicroSoft lead ?   It may well be that we have seen a bifurcation of the free model between corporate and consumer sales.  Free has its place with consumers, but where does it work and prevail with corporations ?  MicroSoft has long been a proponent of online products being free for consumers, but charge the hell out of corporations every chance you get.   Google tried to fight this model for a long time, merely dipping its toe into selling into corporations.  Are they now pulling an about face ?

3.  Has Google realized that at least in the corporate market (B2B), if you live by free, you die by free ? That the rising expectations of support and product enhancements by corporations never end and are expensive to live up to ?

Are there examples of companies who have been able to survive with an exclusively free model in the B2B space ?

(Image source: thedailygreen.com)

Comment

Comment_gbg
Pierre Coupet, on July 29, 2009

Mark, I agree with your statement "if you live by free, you die by free..", however, that being said, Google Apps is still an "alpha"--not even beta--product and really ought to be free.

Our organization uses it and the architecture is a complete disaster. And, by the way, so is their counterpart, Microsoft Office Live Workspace which we also use.

The problem with both of these organizations is that they don't have a clue regarding what virtual organizations have a need for and, therefore, fail miserably with the apps architecture.


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