Google's
proposed
acquisition of email security firm
Postini
will boost the credibility of the search giant's
Gmail
offering among enterprises,
Gartner
predicts.
The analyst firm noted that Google's agreed offer of $625m in cash for
Postini, which represents a price premium of close to 10-times revenue, was a
relatively high price to pay.
Gartner describes Postini as one of the "most successful" of the hosted email
hygiene vendors, competing primarily with
Microsoft
(which acquired FrontBridge Technologies in 2005) and
MessageLabs.
A new Gartner advisory by Matthew W. Cain and Peter Firstbrook pointed out
that Google's key long-term expansion plans target enterprise customers.
Postini's hosted spam and virus filtering, message recovery, archiving and
content control services could be used to attract commercial Gmail customers,
according to the analysts.
"Gmail is the most attractive component of the fee-based Google Apps suite
aimed at businesses, but the initial incarnation (released in February 2007)
lacked enterprise control and security services, diminishing its appeal to the
corporate audience," the Gartner report stated.
"The uptake of Google Apps has generally been limited to small organisations.
By buying Postini, Google will now own a strategic platform for offering
sophisticated message hygiene services to commercial accounts, a business
necessity for multiple types of messaging, including IM and VoIP services."
The analysts predict that the hygiene and control services represent a
significant "upsell" opportunity for the $50 per user per year Google Apps
suite, but high add-on fees would probably threaten its pricing advantage over
Microsoft Exchange, Google's chief competitor for enterprise seats.
They also point out that Microsoft is likely to launch an "aggressive"
Exchange software-as-a-service programme next year.
Postini also represents an attractive commercial market channel for Google,
according to the Gartner report.
"The eight year-old company has 11 million mailboxes under management from
35,000 organisations, representing larger enterprises and small businesses - the
primary target for Google Apps," the analysts stated.
"Postini also maintains a healthy distributor channel which Google might
exploit, although it has always favoured a direct-sales approach."
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