That's what Business Week says. And Garett Rogers points out on his ZDNet blog that a Google Apps for Enterprises page is already online. Pixar is reportedly dying to ditch its homegrown messaging system for Google-powered seamlessness.
Google is expected to charge "a few dollars" per person per month. (Ars Technica says most likely less than $3, to stay competitive with Zoho.) Considering large scale deployments such as Arizona State University's 65,000 users, Google's 300-person enterprise group might soon be generating significant revenue.
In fact, Nick Carr thinks that Google has far greater ambitions than Google Apps as we know it. He's betting on additional SaaS acquisition following last year's JotSpot deal.
Everyone's asking how Microsoft's Office Live (now at 250,000 users) will hold up against Google's assault. Another good question is how the continued evolution of Google Apps will affect low-cost hosting providers? (GoDaddy and eNom are Google's domain registration providers at least. eNom also has Office Live's domain registration business.) And no, 24/7 support won't be enough for maintaining a competitive advantage; Google's planning to offer that as well.
PS - Just came across Phil Wainewright's very interesting list of mega traps for Google Apps. He wonders how committed Google is to generating subscription versus advertising revenue, and he worries that Google will ditch the paid apps business after setting loss-leading pricing expectations that no other vendor will be able to match.
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