Comments on: Google Exchanges Outlook for Apps, Microsoft GAPEs

By: Nick

Nick — Thu, 18 Jun 2009 17:50:20 +0000

> “Microsoft relies on partners. This is great but now that profit margins are squeezed, there is not enough for everyone to make ridiculous profits”

Margins on volume licences are pretty thin already. I know of at least one LAR that was selling below cost, hoping to get sufficient volume that their rebate would put them back into profit. A lot of partners make their real profits though value-added services, not shipping licences. So long as Azure creates opportunities for selling these additional services, the partners will go along with it most happily.

By: billybob

billybob — Thu, 18 Jun 2009 17:15:01 +0000

I bet Ballmer is regretting trying to remove their air supply rather than work with them.

I wonder how this will affect their upcoming pricing for Azure services? Google has a very clear price and now that their services work with Outlook they are feature compatible. Microsoft and their partners should be very worried.

Hosted exchange runs at about $9 per month per user but Google is only charging $4.20. How can Microsoft and their partners compete with that and still make the profits that they are used to?

Google and Apple both sell directly, Microsoft relies on partners. This is great but now that profit margins are squeezed, there is not enough for everyone to make ridiculous profits. Will the partners rebel if Microsoft cut them out?

At first I thought the technical problem was all Google’s fault and that they were just having a laugh. Then I heard that the underlying problem was to do with the massive and brittle Outlook mail file which has to be locked (everyone who has used Outlook will know about the mail file and it’s corruption problems). So now I just think it is another one of those awful Windows design decisions and Google are only doing what they can.

By: whatever

whatever — Thu, 18 Jun 2009 09:55:29 +0000

Microsoft haven’t supported Windows or any other Microsoft product running inside a VMware VM for years for what can only be described as political / competitive reasons.

That said Google would be a far more visible target and probably have the (multi-coloured) balls to do something about it…

By: Josh Jacobson

Josh Jacobson — Thu, 18 Jun 2009 02:43:44 +0000

Hi Joe — insightful article, thank you.

One Outlook search alternative that does work today is Xobni ( http://www.xobni.com ). Xobni is fully compatible with the current release of Google Apps Sync and will index all of the Google Apps mail that is retrieved through Outlook.

By: Joe Wilcox

Joe Wilcox — Thu, 18 Jun 2009 02:24:08 +0000

It’s a harsher regulatory climate now, in EU and US. If Microsoft runs interference with customers, Google will run around yelling “Foul!,” before trustbusters. Microsoft doesn’t want the appearance of interfering with competition affecting twin monopolies.

By: Larry Seltzer

Larry Seltzer — Thu, 18 Jun 2009 02:17:26 +0000

To what extent does running GAS (Google Apps Sync) cause enough of a problem that Microsoft can tell customers it interferes with their ability to support Windows and Office?

How will that play with customers?