Google's Gmail has less than 1% of enterprise e-mail market, Gartner says

Google's Gmail has captured less than one per cent of the enterprise e-mail market, according to Gartner. Despite a few high-profile deployments, most Google Apps customers have only around 50 users, making the overall number of business users relatively small, the analyst firm says.

Google Apps vs. Microsoft Office

"We estimate that Google has between 1 million and 2 million users of GAPE [Google Apps Premier Edition], which points to good growth over the year, but still gives it less than 1% of the overall enterprise e-mail market," Gartner said in its latest MarketScope report on e-mail systems. "Google had some high profile wins with Motorola's wireless division (20,000 seats) and the City of Los Angeles (30,000 seats). Overall, we estimate that there are about 15 companies with over 10,000 GAPE seats each, and that the average customer size is around 50 users."

Those 50-user companies don't count toward Gartner's estimate, which tracks enterprises worldwide, with 100 seats or more.

Gartner's estimate, published on Aug. 12 of this year, is quite different than Google's public pronouncements about the size of its user base. Google says "more than three million businesses run Google Apps."

Google recently updated that number -- back in April, it was claiming 2 million businesses run Google Apps.

Google's estimate of 3 million businesses could include many that do not use Gmail at all, because that's only one component of Google's office suite. For example, it could include businesses with a small group of employees that use Google Docs but not other Google services, even if they do so in addition to Microsoft Office.

In any case, Gartner's estimate shows just how far Google is from catching Microsoft as the primary provider of business email. Gartner analyst Matthew Cain says the analyst firm counts only paid users of the business version of Gmail, whereas Google's numbers count paid and unpaid users with "the vast bulk being unpaid."

Microsoft, meanwhile "has by far the largest share of any supplier, and it certainly has well over half the market for enterprise seats," Cain says.

The business version of Google Apps, including Gmail, Docs, Google Calendar and other tools, runs $50 per user per year. Free versions of all these tools exist, but the $50 fee entitles customers to a 99.9% uptime SLA, additional storage, customer support and security features.

Gartner's MarketScope report, which is similar to the analyst firm's "Magic Quadrant" series, upgraded Google's e-mail rating from "Promising" to "Positive."

The positive rating was also applied to IBM, Mirapoint, Novell and VMware's Zimbra. Microsoft was the only vendor to receive a "Strong Positive" rating.

Xandros, owner of Scalix e-mail, received a rating of "Promising" and Open-Xchange received a "Caution" rating. None of the eight systems evaluated received the lowest rating, "Strong Negative."

According to Gartner, Google has made progress with Gmail in the past year by adding "support for a native connection to the Microsoft Outlook client … a more comprehensive approach to managing and security mobile devices … ActiveSync for calendar and e-mail mobile support … migration tools for Microsoft Exchange … contextual gadgets for displaying imported data in the message," and a FISMA-compliant service for government customers.

"We believe Google has made substantial progress in becoming a mainstream vendor," despite launching the business version of Google Apps only in 2007, Gartner said. However, Google still lacks some common user features and a "deep management console," so third party vendors have had to fill the gaps, the Gartner report continued.

Follow Jon Brodkin on Twitter: www.twitter.com/jbrodkin

Read more about lans and routers in Network World's LANs & Routers section.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags MicrosoftMotorolaGartnerunified communicationsGoogleNetworkingGoogle GmailE-mail services

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jon Brodkin

Network World
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?