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!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

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

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Breitling Superocean Heritage Chronographe 44

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?