You may read this article on Pulse2 yesterday about how Google wants to lure 90% of Microsoft Office users to their Apps services. However Microsoft general manager Julia White said that Google “has not yet shown they are truly serious” about the enterprise app business. “From the outside, they are an advertising company,” added White in an interview with The New York Times.
White pointed out that Google’s revenue from their 5 enterprise businesses added up to around $1 billion, which is only 4% of their revenues in 2011. Most of this revenue was from Google Apps, which is a cloud computing application software division that competes against Microsoft Office. Microsoft’s Business Division hits around $24 billion in revenues and 90% of that amount is from Microsoft Office.
Some Microsoft executives acknowledge that Google is competitive when it comes to business applications. For example, Microsoft Chief Operating Officer Kevin Turner urged partners to sell Office 365 this past July at the company’s Worldwide Partner Conference. Turner said that Office 365 is a big part of the company’s future. He added that “Google is out there pitching our customers.”
Google signed deals with companies like Kohl’s, Office Depot, and the Interior Department to use their office applications. Microsoft signed large customers for Office 365 in 2012 like Toyota, the EPA, and the Santa Clara County. Microsoft said that Office 365 is their fastest growing business, but has not released the revenues for that service.