Google's Gmail application commands roughly half of cloud-computing-based email deployments, vying for market share versus Microsoft Exchange Online and other services.
(NASDAQ:GOOG) Gmail application commands only 1 percent market email market
share in the enterprise, but that's enough for Gartner to proclaim the
application has become a credible competitor to Microsoft (NASDAQ:MSFT)
Exchange Online and other Web-based email services, proclaimed Gartner.
Gmail is the
search-engine provider's cloud-computing messaging software, which became a household application in July 2009 after five years
behind the hundreds of millions of users Yahoo Mail and Microsoft Hotmail
enjoy, Gmail has a hardy, loyal user base. Google doesn't reveal how many Gmail
users it has, though experts estimate somewhere between 150 million to 200
million users access the application for personal and/or professional
might be easier to pinpoint how many people use Gmail for business. Google Executive Chairman Eric Schmidt revealed Sept. 1 that
has 40 million users, with 5,000 joining per day. Gmail
is the flagship messaging application for Google Apps.
revealed how many of those 40 million users pay Google $50 per user, per year
for the Google Apps for Business edition, though the company claims hundreds of
thousands of users are paid customers.
said the enterprise version of Gmail is gaining traction in commercial
organizations with more than 5,000 seats and now has nearly half the market for
cloud email in that market sector. Gartner analyst Matthew Cain predicts big
growth for the cloud email niche.
cloud email is still in its infancy, at 3 percent to 4 percent of the overall
enterprise email market, we expect it to be a growth industry, reaching 20
percent of the market by year-end 2016, and 55 percent by year-end 2020," Cain
He added that,
after the dominant Microsoft Exchange, Gmail is the only email system that has
prospered in the enterprise space since its inception there in 2007. Google and
Microsoft have squeezed Novell GroupWise and IBM Lotus Notes/Domino, which have
both lost market momentum, and others.
Cain's research revealed that Google hasn't been as accommodating as it could
be when it comes to Gmail.
apparently focuses on user feature functionality for the broader consumer
market and largely ignores requests from financial services firms and others
for features that satisfy their requirements on the back end.
for example, may require surveillance capabilities that Google is unlikely to
build into Gmail, given the limited appeal," Cain noted, adding that large
system integrators and enterprises said Google's lack of transparency in areas
such as continuity, security and compliance can thwart deeper relationships.
While cloud email
such as Gmail and Exchange Online are here to stay, Cain recommends that most
organizations execute one more on-premises upgrade through 2014, or even employ
a hybrid system of cloud and on-premise in-boxes.
approach Microsoft currently promotes as it begins to more aggressively ramp up
its Office 365 cloud suite, which includes Exchange Online, SharePoint
collaboration and other services.
outline the battle between Google and Microsoft in the enterprise email market at the