Google offers free software to companies that dump Office

Google offers free software to companies that dump Office

Google is escalating an attack on Microsoft's lucrative Office
software in an attempt to hit its longtime rival where it will hurt the
most.
The assault is targeting companies and government agencies
paying for Microsoft's suite of word processing, email, calendar,
spreadsheet and other Office programs. If they dump Microsoft, Google
will give them free use of a package of its competing software that
normally costs $5 or $10 per user each month.
The price for the
"Google for Work" software will be waived for the duration of the
defecting customers' existing contracts with Microsoft or any other
supplier. The offer is open for the next six months in the U.S. and will
eventually be extended to other countries.
Google is limiting the
free usage to 3,000 people per defecting customer. Even with that
restriction, Google will be forgoing $180,000 to $360,000 in annual
revenue if a company with 3,000 people signs up for the offer. As an
additional incentive, Google will pay up to $75,000 to each company
switching to its software to cover the costs of making the change.
Google, now owned by a newly formed company called Alphabet
Inc., declined to say how much it has budgeted for its latest assault
on Microsoft Corp. Google says more than 600 companies have at least
10,000 employees using Work software.
The offer underscores
Google's confidence in the quality of its software and its resolve to
undercut one of Microsoft's most valuable franchises, said Aragon
Research analyst Jim Lundy
said. He estimated Microsoft's current customers are paying $12 to $20
per user under contracts that typically run for several years.

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