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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Technology > Article Home Business & Finance News U.S. Politics International Technology Internet Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Google goes global with Apps, has 2 million customers Mon Oct 19, 2009 12:38am EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Alexei Oreskovic SAN FRANCISCO (Reuters) - Google Inc said more than 2 million businesses now use its online office software, and the Web search leader is going global on Monday with an advertising campaign to lure customers away from Microsoft Corp and IBM products. The campaign, which starts Monday in countries including France, Japan and Britain, represents a rare foray by Google into mass-market advertising and underscores increasing competition to provide businesses with email and other office software. While Microsoft and International Business Machines Corp dominate the market for enterprise email, Google is trying to convince businesses to switch to its so-called cloud-based services, in which software is accessed over the Internet and maintained at Google's data centers instead of on a company's computers. Cloud-based services can provide cost and maintenance savings over traditional software, though recent high-profile outages -- including an outage of Google's Gmail last month -- have raised questions about the reliability of online software for business users. Gartner analyst Tom Austin said most businesses will eventually switch to cloud-based email, but the process may take years. He noted IBM and Microsoft have introduced cloud products recently, and that Cisco Systems Inc appears to be preparing to offer its own cloud-based software. On Thursday, Google CEO Eric Schmidt told investors during the company's quarterly earnings conference call he intended to boost investments in new business initiatives. Google's Apps business -- which the company has said is profitable and generates hundreds of millions of dollars in revenue a year -- is a tiny portion of Google's overall business, which yielded almost $22 billion revenue last year. According to spokesman Andrew Kovacs, its Apps team has doubled over the past year to more than 1,000 employees. Google said Apps is used by 2 million businesses, up from 1.75 million in June. Those include both larger businesses that pay $50 a year per user for Apps, as well as firms with fewer than 50 employees that get the software for free. The company also said there are now 20 million active users of Google Apps, up from 15 million in June, although that number included students who use the free version Google provides to universities. Google's marketing campaign, which it first rolled out in the United States in August, will feature ads in publications such as The New York Times, Forbes and The Economist, as well as on billboards at airports and train stations in various cities. Google Enterprise Product Marketing Director Tom Oliveri would not say how much Google is spending on the campaign, which runs through 2009. He said the creative part of the campaign was designed in-house by the Google Creative Lab team led by former Ogilvy & Mather executive Andy Berndt. (Reporting by Alexei Oreskovic; Editing by Richard Chang) © Thomson Reuters 2009 All rights reserved Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: Apple's on a roll, but iPhone sales pivotal Apple's on a roll, but iPhone sales pivotal Apple is once again expected to beat expectations when it unveils quarterly earnings next week, but it may have to truly impress to galvanize an already lofty share price. Full Article iPhone a blessing -and a curse for AT&T More Technology News Apple's on a roll, but iPhone sales pivotal First Microsoft store looks set to open Fake security software in millions of computers: Symantec Pardon my bootleg: Navigating China's pirated waters Microsoft says most Sidekick phone data recovered More Technology News... Editor's Choice Slideshow A selection of our best photos from the past 24 hours. Slideshow Most Popular on Reuters Articles Video Google goes global with Apps, has 2 million customers Corporate America worried about sinking dollar Death toll in Iran attack rises to 42 - TV Balloon boy case a hoax, says sheriff; charges coming | Video Pakistani forces pound Taliban in S. Waziristan Modern man a wimp says anthropologist Iran promises "crushing" response as attack toll rise | Video UPDATE 1-Bernanke - crisis shows need to right imbalances Israel may have planted spy gear in Lebanon: U.N. U.S. must live within its means: Geithner Most Popular Articles RSS Feed Video Militants die in Pakistan attack Suicide attack kills Iran guards Sri Lanka refugees in limbo Helicopter downed in Rio violence Mexican police find bodies. Peru new counterfeiting centre. Pakistan attacks concern U.S. Skepticism rises over balloon saga UK climate protest, scores arrested Dublin streets for Boyzone funeral. Most Popular Videos RSS Feed Gameworld Gaming on the cheap As the recession takes a bite out of video games sales in the stores, consumers are opting to download more games to save money while keeping themselves entertained. 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