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Cowen & Company: Running Google Apps is 80% Cheaper

According to Cowen and Company:

“We estimate that it is 80% cheaper to run Google Apps Premium than the all-in cost of Microsoft Outlook (license fees, exchange servers, IT labor). If the economy continues to slow, IT solutions that save money and improve productivity are more likely to be considered by management.

We have been testing Google Apps Premium and have found that it generally matches the functionality of Outlook’s email, calendar, and contacts features. In addition, Google Apps Premium provides 25 GB of storage per user (100 times greater than the 250 MB average for corporate Outlook users), much better search, and much better web access features. In addition, Google Apps Premium provides compliance and security features required by most companies via its acquisition of Postini in September 2007.

At present, Google Apps Premium cannot be used offline, which is a major hurdle to corporate acceptance. However, we expect Google to launch offline capability by mid-2008. The free version of Google Apps is already being used by 100,000 small businesses. Increased awareness and a drive to cut costs could accelerate adoption by medium and large businesses. Expected timing of event: Late 2008 with the expected launch of offline functionality for Google Apps Premium in mid-2008 spurring adoption.”

For more information and analysis by ZDNet, click here.

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