Microsoft and Google’s offerings in the collaboration space

Earlier in this series, we discussed the possibility of Google’s G Suite’s rapid growth posing a threat to Microsoft’s dominance in the collaboration space. Microsoft (MSFT) launched Microsoft Teams for its Office 365 customers.

Recently, Google (GOOG) introduced a revamped Hangouts app. Hangouts Chat is meant for chat communications while Hangouts Meet is suited for video and audio conferencing.

Chart in Focus: Comparing Microsoft and Google in the Collaboration Space

Microsoft (MSFT) claims that ~85 million people use Office 365 on a monthly basis. On the other hand, Google claims that G Suite has 3 million paid business clients.

Microsoft and Google: Not exactly comparable

Microsoft and Google’s respective customer bases are not completely comparable. While Microsoft has a long-standing presence in the enterprise software space, Google is a relative newcomer. The chart above shows a list of the services offered by Office 365 and G Suite.

Patrick Moorhead, president and principal analyst at Moor Insights & Strategy, noted, “Office 365 is leading enterprise collaboration and productivity by orders of magnitude.”

Moorhead added, “Microsoft has the blessing of a massive installed base and are taking advantage of that. Google started with a consumer base and are adding new customers, but the starting points are quite different.”

Explaining how both Microsoft and Google enjoy their respective strengths, Jan Dawson, chief analyst and founder of Jackdaw, noted that Microsoft is “simply the default in many enterprises and that has huge power,” while “Google’s strength is its flexibility and its web-first focus, which is a better fit for many smaller, nimbler businesses and younger workforces.” Jackdaw is a technology research firm.

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