uploads///Internet search

Behind Google’s G-Suite Price Hike

By

Jan. 18 2019, Updated 11:44 a.m. ET

G-Suite prices are rising 20%

Alphabet’s (GOOGL) Google is raising the prices of its G-Suite products by 20%, marking the first time ever the company is pursuing a price hike for its package of productivity apps, which compete with Microsoft’s (MSFT) Office products.

The price hike specifically affects the G-Suite basic and business plans—Google is keeping the price of the enterprise version of G-Suite unchanged. The changes will take effect in April and will see the G-Suite basic package rise to $6 per user per month from the current $5. Similarly, the price for the G-Suite business package will rise to $12 per user per month from the current $10.

Article continues below advertisement

Why Google raised G-Suite prices

Google gave various reasons, including the addition of new services and the tightening of product security, for raising G-Suite prices. According to Google, the only thing about G-Suite that hadn’t changed in more than a decade was its price.

Google closed 2017 with more than 4.0 million paying G-Suite customers, suggesting that the number may be higher by now. Google’s parent, Alphabet, is scheduled to hold a conference call to discuss its fourth-quarter earnings results on February 4, at which time there may be updates on G-Suite’s customer base.

Cloud vendors’ market share

G-Suite is a component of Google’s cloud computing business. According to Synergy Research estimates, Google held ~6.0% of the global cloud market at the end of September, putting it ahead of Alibaba (BABA) with its ~5.0% share. However, it lags behind Amazon (AMZN), Microsoft, and IBM (IBM), which have market shares of ~34%, 14%, and 7.5%, respectively.

Advertisement

More From Market Realist

  • Businesswoman looking out a window
    Company & Industry Overviews
    Shifting Focus: Three Women Investing Funds in 2021
  • Aol logo on office building,
    Company & Industry Overviews
    What We Know About Apollo Global Management, New Owners of AOL and Yahoo
  • Chick-fil-A sign
    Company & Industry Overviews
    Why It Only Costs $10K to Own a Chick-fil-A Location
  • Beyond Meat Burger 3.0
    Company & Industry Overviews
    How Is Beyond Burger 3.0 Different and Will It Bring BYND Stock Up?
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.