07 July 2009 | Author: J. Cave SEO Consultant
In August of 2006, Google launched a dynamic new business service known as 'Google apps for your Domain'. The suite combined popular Google business products such as Gmail, Google Talk and Google Calendar with no software installation required. Most importantly it was free.
A few months later, Google launched Google Apps Premier, an ad-free, paid subscription package that put them in direct competition Microsoft. Costing only $50 per year, the Google service dramatically undercut Microsoft's offering and was eagerly picked up by large multinational corporations such as General Electric, L'Oreal and Proctor and Gamble.
That was in 2007. Now - according to a post by Michael Arrington - it looks like Google could be getting rid of the free version completely.
The signup page for Google Apps no longer offers a free option; instead users can take a 30 day trial and after that period pay the premier rate of $50 per year. While $50 is not a major cost to most businesses - especially when compared with alternative products - it is no longer the product which Google once described as "a service available at no cost to organizations of all shapes and sizes."
'Freeconomics' or 'Freemium' has been the backbone of Google's business model for years, and while it has given Google enormous brand reach, it is of course not as profitable as a subscription based model. According to Google the vast majority of the 1 million businesses who use Google apps opt for the free advertising-supported version.
Over the past few months Google has been trying different tactics - such as reducing the number of user accounts available on a free account - in order to encourage more businesses to opt for the premier version.
Now it looks like Google - not immune to the recession - is moving away from this model. Questions will of course be raised by the one million or so free users as to whether or not their accounts are safe. Bigger questions will be raised as to whether or not Google is likely to make more of its services subscription based.
Has Google Apps abandoned free model?
In August of 2006, Google launched a dynamic new business service known as 'Google apps for your Domain'. The suite combined popular Google business products such as Gmail, Google Talk and Google Calendar with no software installation required. Most importantly it was free. A few months later, Google launched Google Apps Premier, an ad-free, paid subscription package that put them in direct competition Microsoft. Costing only $50 per year, the Google service dramatically undercut Microsoft's offering and was eagerly picked up by large multinational corporations such as General Electric, L'Oreal and Proctor and Gamble.
That was in 2007. Now - according to a post by Michael Arrington - it looks like Google could be getting rid of the free version completely.
The signup page for Google Apps no longer offers a free option; instead users can take a 30 day trial and after that period pay the premier rate of $50 per year. While $50 is not a major cost to most businesses - especially when compared with alternative products - it is no longer the product which Google once described as "a service available at no cost to organizations of all shapes and sizes."
'Freeconomics' or 'Freemium' has been the backbone of Google's business model for years, and while it has given Google enormous brand reach, it is of course not as profitable as a subscription based model. According to Google the vast majority of the 1 million businesses who use Google apps opt for the free advertising-supported version.
Over the past few months Google has been trying different tactics - such as reducing the number of user accounts available on a free account - in order to encourage more businesses to opt for the premier version.
Now it looks like Google - not immune to the recession - is moving away from this model. Questions will of course be raised by the one million or so free users as to whether or not their accounts are safe. Bigger questions will be raised as to whether or not Google is likely to make more of its services subscription based.
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