2015 Advertising Opportunities - Find Out More!

Will Google Build A Cloud-ERP Solution For Small Businesses

Will Google Build A Cloud-ERP Solution For Small Businesses

For far too long, Google has been playing catch-up to Microsoft in the business productivity segment. According to numbers released by analyst firm Gartner, Microsoft still holds close to 90% of the market with its Office suite of products. But the silver lining for Google is in the cloud-office space where the research firm predicts a market share of at least 33% for Google.

There are several things going right for Google at the moment. Firstly, enterprises are still warming up to the idea of hosting their data in the cloud. Analysys Mason in a report published earlier this year predicted the enterprise cloud business to grow at an annual growth rate of 17%. To a majority of the companies that are new to cloud, their prior reliance on MS Office should not be a deterrent while exploring Google as a viable alternative in the cloud computing space. Secondly, Google is a mammoth in the online advertising space. Consequently, they have an advantage over competitors in offering ad-supported freemium models that is highly welcome among the micro small and medium businesses to whom the existing productivity suites are a tad expensive.

As Google consolidates its position in the enterprise productivity segment, one question that often keeps popping up is whether the company has set already its sights on the ERP segment. It is not difficult to see why. According to a recent survey by IDC Insights, 25% of small businesses are already in the process of setting up cloud ERP while another 20% are seriously considering the move. It is a pretty well-known fact that businesses have a huge inertia to change when it comes to deploying IT infrastructure.

We are today in a very interesting time where close to half the small businesses are overcoming this inertia to explore a move to a new infrastructure.Companies in the ERP segment are thus seeing this as a now-or-never kind of a scenario to gain a whole new segment of customers. The biggest names today in the traditional ERP space like SAP, Oracle and Sage now offer alternative ERP offerings on the cloud. In doing so, they are competing against the pure-play cloud ERP providers like NetSuite, Plex Systems and Infor.

Given the transition, Google might see this as the most opportune moment to venture into the ERP segment themselves. There are quite a couple of reasons why this may be the case:

Consolidation In The Enterprise Cloud Space: The enterprise SaaS segment constitutes primarily of business productivity suites and ERP. Google already is in the process of establishing itself in the productivity segment. By not offering an ERP service, the company may lose out to the likes of Microsoft who have a whole umbrella of products to offer to small businesses in the form of Office 365 and Microsoft Dynamics. Unlike the traditional systems where companies did not mind deploying software from multiple competing providers for their different requirements, one of the focus areas for businesses when it comes to transitioning to the cloud is consolidation of their data. This means, businesses looking for cloud services will inevitably look at one provider who can service their multiple requirements.

Google’s Pricing Strategy: The pricing strategy of legacy ERP providers has always been skewed against the cash-strapped small businesses. Cloud-based ERP is seen as a cost-effective alternative and that is one reason why close to 45% of these businesses are looking to transition to the cloud. Regardless of how the price wars pan out among the various competitors in the segment, Google can afford to beat competition on price; at least for the micro-small businesses. The company has traditionally offered free ad-supported services to businesses in the enterprise space and they are likely to deploy a similar strategy for ERP as well. Given Google’s dominance in the online ad space, the company is likely to pull out a better pricing deal to small businesses than any other competitor.

Google’s entry into the cloud-based enterprise resource planning segment may be the most disruptive factor that the ERP industry has seen in a while. Mountain View itself has not given any indications about their plans as yet. However, given that the market conditions are so massively tilted in favor of Google, we wonder if the world’s most popular search engine company could finally make its foray into the cloud ERP by next year. What are your thoughts?

By Anand Srinivasan

Anand writes for ERPGuru, a company that specializes in implementing and supporting NetSuite Canada. He is in the process of launching his own SaaS-based tool for marketers shortly.

Follow Us!

CloudTweaks

Established in 2009, CloudTweaks.com is recognized as one of the leading authorities in cloud computing information. Most of the excellent CloudTweaks articles are provided by our own paid writers, with a small percentage provided by guest authors from around the globe, including CEOs, CIOs, Technology bloggers and Cloud enthusiasts. Our goal is to continue to build a growing community offering the best in-depth articles, interviews, event listings, whitepapers, infographics and much more...
Follow Us!

One Response to Will Google Build A Cloud-ERP Solution For Small Businesses

  1. Very interesting article – I wonder how the industry will change if Google enter the market?  We currently use this ( http://www.cpio.co.uk/solution/detail/4/sage-200 ) Sage 200 software and it really works well, but if Google integrate their ERP with other Google software it’ll tempt a lot of people to move over.

Comics

At CloudTweaks, we're plugged into the cloud, the internet of things and all that the web has to offer. From wearable technology, to mobile computing, cloud computing and big data, CloudTweaks is your source for updates and news on the most innovative technology.

Popular

Top Viral Impact

5 Considerations You Need To Review Before Investing In Data Analytics

5 Considerations You Need To Review Before Investing In Data Analytics

Review Before Investing In Data Analytics Big data, when handled properly, can lead to big change. Companies in a wide variety of industries are partnering with data analytics companies to increase operational efficiency and make evidence-based business decisions. From Kraft Foods using business intelligence (BI) to cut customer satisfaction analysis time in half, to a…

Cloud Infographic – The Future Of Big Data

Cloud Infographic – The Future Of Big Data

The Future Of Big Data Big Data is BIG business and will continue to be one of the more predominant areas of focus in the coming years from small startups to large scale corporations. We’ve already covered on CloudTweaks how Big Data can be utilized in a number of interesting ways from preventing world hunger to helping teams win…

Cloud Infographic: The Education Of Tomorrow

Cloud Infographic: The Education Of Tomorrow

Cloud Infographic: The Education Of Tomorrow  Online Education is a very exciting topic for many as it opens up many new doors and opportunities. We’ve touched on areas such as Massive Open Online Sources (MOOC) which provides tremendous levels of cloud based interconnectivity. We’ve taken a look into higher education,  the increased demand for online courses as well as…

Monetization of the Internet of Things – Q&A With Brendan O’Brien

Monetization of the Internet of Things – Q&A With Brendan O’Brien

Q&A With Brendan O’Brien, Co-Founder of Aria Systems (Part 1) Monetization of the internet of things (IoT) is one of the most exciting and challenging issues facing the industry today, so we spoke with Brendan O’Brien to learn more. Brendan is the Co-Founder of Aria Systems, who are one of the leading innovators in recurring…

Are Cloud Servers The Right Choice For Your Business?

Are Cloud Servers The Right Choice For Your Business?

Cloud servers offer power, flexibility, reliability, and client friendly hosting for small and medium businesses that have outgrown shared hosting. New business hosting clients are bombarded with an incredible diversity of different choices for their site’s hosting. It can be a challenge to negotiate the range of platforms and the marketing hype that many hosting…

Featured Sponsors

Watching You Shop: Stores And Mannequins “Read” Their Customers And Respond

Watching You Shop: Stores And Mannequins “Read” Their Customers And Respond

Watching You Shop The mannequin in the store window stares blankly ahead as shoppers look at the clothes it is dressed in and contemplate a purchase. One shopper makes some comments. “It’s nice. I wonder if they have my size.” Another takes a few steps inside the store to see where these particular clothes might…

Salesforce Service Cloud: Air Traffic Control For Your Customer

Salesforce Service Cloud: Air Traffic Control For Your Customer

Salesforce Service Cloud One of the greatest benefits of the increasingly reliable and ubiquitous state of cloud technology is the removal of business silos and the consolidation of information flow, both in-house and on the road. This is of particular importance to the many different types of professionals whose work involves customer relationship management (CRM).…

Cloud Logo Sponsors

hp Logo CityCloud-PoweredByOpenstack-Blue square_logo_100x100-01
cisco_logo_100x100 vmware citrix100

2015 Advertising Opportunities - Find Out More!

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Contact

CloudTweaks Media
Phone: 1 (212) 763-0021

Join Our Newsletter