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iPhone's Challenge. Software's Opportunity.04/21/08 - MMaderHeavyweight fights seem to get most of the attention. Maybe that's why the press won't let go of its desire to promote the Microsoft Office vs. Google Docs fight. My take - it won't be a fight worth watching. It won't be a 2nd round knockout. There won't even be a unanimous decision for Microsoft or Google. In fact, there will be many Software as a Service (SaaS) providers who realize success in bringing to market high value services. It will only accelerate as traditional and online software providers make it easier for customers to combine offerings. In his Forbes technology opinion piece titled ’Tough Customers', Daniel Lyons is the latest to reference the much hyped Microsoft vs. Google apps battle. The article focuses on Apple's quest to gain share in the corporate mobile computing space - at the expense of Windows Mobile & RIMM. He compares Apple and Google in their pursuit of the lucrative prize – the corporate user. He suggests that it won't be easy for Apple by remarking that Google’s foray into the application market hasn’t been successful. "Have you heard of any big companies that have ditched Microsoft Office and switched to the free Google Apps? Me neither." I understand the point he’s trying to make, I simply wouldn’t gauge Google’s success or lack thereof by counting the times they have ‘displaced’ MS Office within a company. For Google, and other SaaS providers like Smartsheet, displacing an incumbent isn’t required to post a win. Why is the iPhone situation different? For it to succeed with existing mobile users, iPhone will have to displace RIMM or Windows Mobile. Most people won’t deal with managing two mobile numbers, no less wish to cram two devices into their pant pocket. Furthermore, companies won’t fund two overlapping plans. In this situation, the Highlander quote holds, “in the end, there can only be one”. Software on the other hand, doesn’t force people to choose a single product or service. It’s not about whether Google Docs will displace Microsoft Word or whether Smartsheet will displace MS Office or Exchange for tracking and managing work. It is about enabling people to utilize a combination of tools and solutions that make them most productive. Most of our subscribers still use Excel to model their financials, PowerPoint to present their pitches, and Word to draft agreements. Some of them also use Google Docs to manage similar docs in the cloud. Smartsheet is used to logically group and bring context to these files in a shareable online solution. Whether they upload their MS Office files or link to their Google Docs, Smartsheet helps people organize, assign, and accelerate the completion of work. Does Microsoft care deeply that our customers use MS Office or Exchange in fewer situations? I doubt they are losing much sleep. So long as people continue to treat Office as a required component in their productivity tool arsenal, their license dollars are secure. Software, like innovation, is not a zero sum game. Driven by convenience and affordable subscription pricing, people will choose multiple solutions to enhance productivity and job satisfaction. So, do you want to be in the mobile device market or the SaaS market? I’ll pick software any day of the week. That said, kudos to the Apples of the world, who place a huge bet on expecting people to do what they naturally avoid – make a tough choice. As for my prediction on how the iPhone will fare in the corporate setting once Exchange support is released? Even with a high hurdle, Apple will attract new users to mobile computing and, yes, be in a strong position to displace the competition. Reply |