It appears the acquisition was made so that Google could better persuade larger businesses to make the switch to Google Apps, without the fear of any data breaches.
“The response to Google Apps has been tremendous, with more than 1,000 small businesses signing up for the service every day. At the same time, large businesses have been reluctant to move to hosted applications due to issues of security and corporate compliance. By adding Postini products to Google’s technology, businesses no longer have to choose — employees get the intuitive products they want, and the company achieves the security and assurance it needs,” said Dave Girouard, Vice President and General Manager, Google Enterprise.
With this valuation, Google must be confident that they can persuade a whole lot of larger corporations to switch to Google Apps. As for the 1,000 businesses signing-up each day, you can count Marketing Pilgrim LLC among that number. After upgrading to Outlook 2007, I found it to be painfully slow – it shouldn’t take 10 seconds to preview an incoming email – even with a dual core processor, 2GB of ram and a compressed PST file. This weekend I made the switch to Google Apps Premier and have so far been very pleased with the experience. I’m just a company of one – and I’m sure many of that “1,000″ number are similar sized businesses. Postini is a smart move if Google wants to attract security-minded businesses.