Interesting news - especially given prior comments from Google that the Google cloud is perfectly safe and that companies should leave security worries to Google rather than to IT groups. The Google cloud must now be even "safer-than-safe".
Actually, I think the acquisition is a good deal and signals the market that Google might actually realize that its needs more than sound-bytes when it comes to securing the cloud for business users. My own .02 cents however is that in the short-run, I would be surprised if this acquisition has any direct impact on the ability of Google to sell large enterprises on Google Apps. Large organizations will view this as a positive move, but any such transition from existing productivity suites to Apps is a bit more complicated. It is however an important long-run capability that Google needs to own and one that can be complimented by other improvements or acquisitions Google might make in the future.
I do think though that Google will be surprised by how popular this solution will be with small/medium size business customers. As Google becomes more mature in its thinking about business needs and SaaS, it will realize that small-to-medium size enterprises are also under pressure to adhere to complex regulatory, compliance and other mandates that necessitate comprehensive security records and identity management services.
We launched Google Apps so that it would be easier for employees to communicate and share information while reducing the hassles and costs associated with enterprise software. Companies are responding: every day, more than 1,000 small businesses sign up for Google Apps.
Larger enterprises, however, face a challenge: though they want to deliver simple, useful hosted applications to their employees, they're also required to support complex business rules, information security mandates, and an array of legal and corporate compliance issues. In effect, many businesses use legacy systems not because they are the best for their users, but because they are able to support complex business rules. This isn't a tradeoff that any business should have to make.
We realized that we needed a more complete way to address these information security and compliance issues in order to better support the enterprise community. That's why we're excited to share the news that we've agreed to acquire Postini, a company that offers security and corporate compliance solutions for email, IM, and other web-based communications. Like Google Apps, Postini's services are entirely hosted, eliminating the need to install any hardware or software. A leader in its field, Postini serves more than 35,000 businesses and 10 million users, and was one of our first partners for Google Apps. Their email and IM management services include inbound and outbound policy management, spam and virus protection, content filtering, message archiving, encryption, and more. We will continue to support Postini's customers and we look forward to the possibilities ahead.
I agree that a "A Secure Cloud Is A Good Cloud" -- with an emphasis on the word cloud.
I have talked to many potential customers about outsourcing email archiving and electronic discovery. While they love the idea of screening inbound mail, I tend to hear two major objections to corporate email outsourcing:
1. It is dangerous to let a third party hold your most confidential email. If the third party receives a subpoena for your mail, would they fight the request on your behalf when they have nothing to gain by fighting? Or, would they cooperate to protect their interests? (In the case of suspected terrorist-related activity, it may even be illegal under the Patriot Act for them to tell you of the search for your email.)
2. The amount of bandwidth required to send internal mail to an outsourced provider is enormous. Companies like Postini can easily archive external mail. The Google/Postini match is ideal for companies that host their mail systems with Google. But, large companies with their own email systems cannot afford the Internet costs for shipping that much mail.
Since I do not see customers willingly handing over their internal email crown jewels, I have to wonder if all of this activity is being driven by people in love with the outsourced business model -- not the customer.
In fairness, I should report that I am the CEO of InBoxer, an email archiving and electronic discovery vendor.
Blog: http://www.deathbyemail.com
Posted by: Roger Matus | July 10, 2007 at 05:39 PM