Alphabet Inc (NASDAQ:GOOGL) Giving Away Google For Work To Microsoft (MSFT) Defectors


Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) has launched a campaign that could leave Microsoft Corporation (NASDAQ:MSFT) with serious bruises in the enterprise productivity market. The company is pledging free Google for Work subscriptions to organizations that agree to abandon Microsoft’s Office suite at the end of their existing contracts. Alphabet’s Google for Work software costs $5-$10 per user per month.

Alphabet Inc (NASDAQ:GOOGL) is spoiling for a major war with Microsoft in the office software business. Microsoft is the dominant player in the documents production software market, and Alphabet has figured out how to undercut it in the space. Instead of merely pointing Microsoft’s Office subscribers to an alternative product, Alphabet is committing to shoulder their financial burdens as well.

Paying to influence defection

According to Alphabet, organizations that currently use Office from Microsoft can keep their existing contracts but still enjoy its Google for Work software. In that case, Alphabet is giving way free Google for Work subscriptions to potential customers. Additionally, Alphabet is committing to pay $75,000 to each organization that has agreed to switch to Google for Work from Office. Alphabet said the compensation is intended to cover the cost of shifting from the Office system to Google for Work environment.

Alphabet’s Google for Work freebie is available for organizations that have up to 3,000 employees. Already, over 600 companies with more than 10,000 employees have signed up for Google for Work software.

70% cost-saving

After the free trial, organizations will normally pay between $5 and $10 per user each month to retain Google for Work subscription. According to Alphabet, companies that make the switch to Google for Work from Office could save up to 70% of their previous office software costs.

Microsoft as a tough nut to crack

Alphabet Inc (NASDAQ:GOOGL)’s move to trigger Office defection with free Google for Work and financial compensation could be head-turning. However, it also shows how tough it is for even heavyweights to beat Microsoft in its game.

Nevertheless, if Alphabet Inc (NASDAQ:GOOGL) succeeds in its attack on Office, Microsoft could be hit where it hurts the most. The Office division contributes nearly a quarter of Microsoft’s annual revenue.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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