Posted July 9, 2007 11:07 am by with 3 comments

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Google’s hasn’t bought a company for at least a week, so they decided to go out and drop $625 million in cash to acquire security solutions provider Postini.

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.

  • Damon

    It’s funny because I had a friend who used to work for Postini and he thought they would go public, well it looks like the management will get a nice payday.

    Online security is a big issue right now, and this purchase by Google illustrates that. There’s a company called Webargos who do online surveillance to protect a companies private information. Check them out at

  • I’m using Google Apps, but just heard about Postini, i think it will be more secure with this enhancement.

  • Doesn’t history seem to be repeating itself? Google is following the dreaded Microsoft Machine’s method of buying up competitors and technology. We know what public feelings are for Microsoft, I wonder if this practice will lead to the same sentiments for Google?