Microsoft's Office 365 Challenges Google in the Cloud | CIO Insight

Microsoft’s Office 365 Challenges Google in the Cloud

Jun 29, 2011
2 minute read

Microsoft s Office 365 release intensifies its competition with Google. The question now is whether the Office 365 platform, as the cloud-based extension of Microsoft s long-running Office franchise, actively threatens Google s work in the cloud-productivity arena.

Microsoft would certainly like that to be the case. During its June 28 launch event in New York City, CEO Steve Ballmer claimed Office 365 will give SMBs (small to midsize businesses) an "edge" in competing, without the burden of complex on-premises systems. Perhaps not coincidentally, SMBs also represent a significant audience for Google Apps.

Certainly the competition between Microsoft and Google has intensified in recent months. Tom Rizzo, senior director of Microsoft Online Services, insisted in a May 17 interview with eWEEK that businesses were trying Google’s business-cloud offerings before shifting back into Microsoft ‘s camp. Google executives took strident exception to Rizzo’s assertions, arguing that Google remains the leading choice for businesses interested in cloud-based email and collaboration.

And so it’s gone on, for some time. But now there’s Office 365: Microsoft Office, SharePoint Online, Exchange Online and Lync Online unified onto a cloud platform available for between $2 and $27 per user per month. It’s a rebranding of Microsoft’s BPOS (Business Productivity Online Suite) and a shot across the bow of Google Apps.

However, early analysts seem to think Microsoft has some distance to go before it poses a serious threat to Google s position in cloud productivity.

"While Office 365 does put Microsoft in mortal combat with Google," Matthew Cain, an analyst with Gartner, wrote in a June 28 email to eWEEK, "it is not really an existential threat for Google since Microsoft is essentially validating the model that Google pioneered with Google Apps."

"I would expect that Office 365 actually heightens interest in Google Apps," he wrote. "The first ingredient we need for companies to wholly embrace cloud-based personal productivity and collaboration tools is time. Time — and I mean 3-5 years — will prove or disprove the soundness of the model in terms of economics, security, stability and functionality."

To read the original eWeek article, click here: Microsoft’s Office 365 Faces Challenges, Google in Cloud Battle

CIO Insight Staff

CIO Insight offers thought leadership and best practices in the IT security and management industry while providing expert recommendations on software solutions for IT leaders. It is the trusted resource for security professionals who need network monitoring technology and solutions to maintain regulatory compliance for their teams and organizations.

CIO Insight Logo

CIO Insight offers thought leadership and best practices in the IT security and management industry while providing expert recommendations on software solutions for IT leaders. It is the trusted resource for security professionals who need to maintain regulatory compliance for their teams and organizations. CIO Insight is an ideal website for IT decision makers, systems integrators and administrators, and IT managers to stay informed about emerging technologies, software developments and trends in the IT security and management industry.

Property of TechnologyAdvice. © 2026 TechnologyAdvice. All Rights Reserved

Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.