Google Protects Apps with Postini

By Greg McNevin

July 11, 2007: Google’s run of acquisitions is continuing this week, with the search juggernaut picking up on-demand communications security and compliance provider Postini. Telcos and VOiP providers beware.

Serving message security, archiving, encryption and policy enforcement up to 35,000 businesses and 10 million users worldwide, Postini is no small time operation, leaving Google shelling out US$625 (AU$727) million in cash to seal the deal.

The company will absorb Positini’s technology into its ever-expanding stable of online office, productivity and communication applications, creating a formidable suite of solutions that could indeed one day turn into a substantial threat to Microsoft’s dominant Office.

“The response to Google Apps has been tremendous, with more than 1,000 small businesses signing up for the service every day,” said Dave Girouard, Vice President and General Manager, Google Enterprise. “At the same time, large businesses have been reluctant to move to hosted applications due to issues of security and corporate compliance.

“By adding Postini products to Google’s technology, businesses no longer have to choose - employees get the intuitive products they want, and the company achieves the security and assurance it needs.”

While its applications are significantly less complex and powerful compared with the wide ranging functionality of Microsoft’s solutions, Google software such as Gmail, Calendar, Talk, Docs & Spreadsheets are also attractive for the same reason. Individuals and SMBs who only need to perform basic office functions are increasingly turning towards Google’s solutions, with the company claiming 100,000 business customers, and 1,000 more new signups every day.

“With this transaction, we’re reinforcing our commitment to delivering compelling hosted applications to businesses of all sizes. With the addition of Postini, our apps are not just simple and appealing to users - they can also streamline the complex information security mandates within these organisations,” said Eric Schmidt, Chairman of the Board and Chief Executive Officer of Google.

Postini will become a wholly-owned subsidiary of Google when the deal closes at the end of Q3 2007.

Comment on this story