Google Apps Marketplace Challenges, Analysts Say

Is angry that Google launched its Google App Marketplace? The enterprise application and cloud computing provider isn't saying so if it is, and both Google and claim they're getting along great. Still, while Google and integrate on Google Apps, did not join the Marketplace. After all, it has its own AppExchange store to tend to. Despite cordial statements from both companies, analysts see the Google Apps Marketplace as a definite challenge to AppExchange.

News Analysis: Neither Google nor will acknowledge any friction, but some industry watchers wonder whether might be secretly chafing at the launch of Google's Apps Marketplace March 9.

The Google Apps Marketplace lets third-party software developers sell applications that integrate with Google Apps, including Google Docs, Calendar and the Sites Web publishing app.

Google Apps customers, which include 2 million business and 25 million active users, can purchase project management apps from Atlassian and Manymoon or billing and accounting software Intuit, among other services. This will provide third-party software developers with a larger cloud computing channel into which to sell their applications.

This store, which trades entirely in Web-based or cloud computing applications, follows in the footsteps of's successful AppExchange cloud computing store.

There are clearly key differences, the most obvious of which is that, at more than 4 years old, AppExchange is far ahead of the Marketplace. Google's Marketplace launched with 50 partners, while AppExchange touts hundreds of partner applications.

While Marketplace features collaboration software as the base,'s anchor for apps is a CRM application to help salespeople close deals.

Yet Marketplace and AppExchange both sell similar offerings, including apps for project management and finance. There is overlap in services and similarities in the SAAS method with which they are provided. That sounds a lot like competition to analysts such as Forrester Research's Ted Schadler.

Schadler said that Google sees the opportunity to add a great layer of integration to help expand the Google Apps ecosystem, where many independent apps may be stitched together to prop up Google Apps. "It's a play for share and momentum against"

"[Google Apps Marketplace] is a marketplace for any cloud-hosted application. So it's an integration hub as well as a marketplace. That puts it in a different place from AppExchange," Schadler said. "It starts with e-mail, not CRM, as the anchor. That's much more interesting because everybody uses e-mail."

CRM is a specialty app, albeit a lucrative one.

IDC analyst Melissa Webster said she isn't sure whether was invited to join the Google's Apps Marketplace, which includes rivals NetSuite and SuccessFactors.

"My sense is that was not in there courting Google, and Google had plenty of other takers and doesn't really care," Webster told eWEEK.