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Google is now in an all-out war with Microsoft for market supremacy. They invaded Microsoft’s turf when they launched Google Apps in 2006. By launching Google Apps they are able to simultaneously attack Microsoft Office and Microsoft Windows.

Here are some reasons why Microsoft is worried:

  1. Google Apps directly compete with Microsoft Office for corporate dollars.
  2. Google Apps renders the operating system irrelevant, as it runs in a web browser. So corporations may be inclined to switch from Microsoft Windows to Mac OS X, Linux, or some other operating system.
  3. Google can undercut Microsoft on cost with Google Apps because it is not their main source of revenue and they have the most efficient back-end.
  4. Additionally, by making Google Apps web applications or Software as a Service (SaaS), users don’t need to worry about losing their data. If your computer dies, your files are still safely stored remotely on Google servers. Users can access their files from any computer, anytime, anywhere.
  5. Microsoft can launch an online version of Microsoft Office (which they are in the process of doing), but it will cannabilize their Microsoft Office. This puts Microsoft in a tough situation. Microsoft Office online cannot compete with Google Apps in price, as Google has a more efficient computing and storage platform. Also, because of Microsoft Office, Microsoft Office online cannot be priced too low. . . .

While Google Apps is still in the early running, it provides most of the features of Microsoft Office, such as a calendar, e-mail, instant messaging, word processing, spreadsheets, presentations, etc. While not quite up to par with Microsoft Office, it is but a matter of time. Not only that, but most of their web applications are quite compatible with Microsoft Office files.

Additionally, Google is allowing schools and small businesses to use Google Apps for free. As students graduate and businesses grow, users will become familiar with Google Apps and have no problems adopting it in the corporate world.

The battle for the enterprise is heating up.