Posted October 3, 2007 10:16 am by with 3 comments

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image You can tell which acquisitions are important to Google’s bottom line and which are more speculative. All you need do is measure how long it takes them to start integrating the service with existing Google offerings.

In the case of Postini, the process took just 3 weeks, as Reuters reports Google will today rollout enhanced security for Google Apps. With the integration of Postini, Google’s corporate email and web services will be more secure and offer greater storage limits.

Google, the market leader in Web search and online advertising for consumers, is introducing e-mail controls and anti-spam protections resulting from the acquisition of e-mail services supplier Postini, which it closed three weeks ago.

Enterprises which pay $50 a month per office worker for the Google Apps package of business software, e-mail and Web services will get 25 gigabytes of data storage each for no extra cost, meaning many users will no longer need to delete incoming e-mail.

At $50 per person, Google Apps could become a good revenue stream for the company–they just need the numbers. Now that they can tout the increased security and capacity, expect big companies to take a closer look at the Microsoft/Lotus alternative.

So, next time you see Google make an acquisition, you have a new yard-stick to measure how long the integration will take. If the acquisition isn’t accretive–such as Dodgeball–it will languish. If, however, it can add to Google’s revenues, expect a quick transition.

  • At $50 per head, I suspect that they are pricing themselves just above bulk volume businesses. Although they have integrated fast, I would like to see how well their pricing strategy works.

  • Interesting observation about the time to integration. The added security is a little ironic given some of the security holes gmail has seen lately.

    Now isn’t it the official stance that Apps is not in competition with Office?

  • @Steven – remember “competitor deniability” – if each side keeps telling themselves they don’t compete, no one need worry. 😉