Google’s Winter of Discontent

Late last week, Google announced that, as part of its “Winter cleaning,” they would be eliminating, or “closing”, some the less popular features from their free products and services. Examples of these include the ability to create calendar events via SMS or to check your calendar via SMS.  And who knew about Punchd, an Android app that keeps loyalty punch cards on your smartphone? Apparently not many people as it is getting axed as well.

However, some other features that they’re eliminating are a bit more surprising. The one getting the most attention is Google Sync, Google’s implementation of Microsoft’s Exchange ActiveSync for syncing Google Mail, Calendar and Contacts. EAS is the premier syncing technology for mobile devices that run Apple’s iOS and Microsoft’s Windows Phone 8. Microsoft even added EAS support for Outlook 13, the update to their popular desktop email client. While it’s true Google is only “closing” Google Sync for new users of their free mail service after January 4, 2013, it will still cause a lot of headaches for a lot of people. They also state that, with their implementation of IMAP for syncing mail and CalDAV and CardDAV for syncing calendars and contacts, that users of their free mail service won’t really be affected.

There’s just one problem with that line of reasoning: Microsoft’s Windows Phone 8 doesn’t support CalDAV or CardDAV as it relies solely on EAS for calendar and contact syncing. Therefore, anyone who purchases a Windows phone after Google’s Winter cleaning is completed won’t be able to sync their phones with their free Gmail accounts – well, at least not their Google calendars or contacts. As a result, many in the tech community are projecting that this is an escalation of the platform wars surrounding Microsoft and Google. In addition, it’s clear that Microsoft may have been taken by surprise at the Google’s revelation and is doing whatever they can to spin people from Gmail to Outlook.com, their own paid email service.

This is all extremely entertaining for those of us in the mail server business. While the big guys all slug it out, pointing people away from free services and funnelling them toward paid services, our products become even more important parts of the discussion. For example, when looking at the paid options from Microsoft and Google, SmarterMail’s price point really comes into its own, even with the Exchange ActiveSync add-on factored in.

As an example, let’s use a 15 employee business, which is the sweet spot for both Google and Microsoft. Below is a pricing matrix comparing Outlook.com’s price with Google’s Apps for Business paid service, and SmarterMail’s Enterprise licensing alongside. The numbers speak for themselves.

	Outlook.com $6/user/month	Google Apps $50/user/year	SmarterMail Enterprise
Monthly Fee	$90.00	$62.50	N/A
Yearly Fee	$1350.00	$750.00	$499.00
EAS Add-on	N/A	N/A	$199.00
Yearly Total	$1350.00	$750.00	$698.00

What this doesn’t factor in is that, with SmarterMail (or any SmarterTools product), yearly renewals of upgrade protection are extremely discounted – up to a 60% savings. So, year 2 would look like this:

	Outlook.com $6/user/month	Google Apps $50/user/year	SmarterMail Enterprise
Monthly Fee	$90.00	$62.50	N/A
Yearly Fee	$1350.00	$750.00	$199.60
EAS Add-on	N/A	N/A	$199.00
Yearly Total	$1350.00	$750.00	$398.60

That means SmarterMail Enterprise, with EAS, is almost half of the cost of Google Apps for Business. When you start adding employees, those savings become even more apparent as SmarterMail’s overall cost doesn’t increase until you hit 25 employees and need to increase your EAS subscriptions. And even if you don’t need EAS for syncing your Apple or Android devices, let’s say you’re a die-hard Windows fan and will cling to your HTC 8 or Nokia Lumia 920 until end of time, SmarterMail can accommodate you as well. That’s because SmarterMail natively supports IMAP, CalDAV and CardDAV so you can still get enterprise-level mail service for an even greater discounted price. Then there are the other things that come included: anti-spam and anti virus that keep mail servers, and users, secure; instant messaging and live chat, even when using external clients; shared contacts and calendars; industry-leading webmail interface, and much more.

So, go ahead, guys. Keep doing what you’re doing. We’ll sit on the sidelines with our popcorn and watch how things unfold…and we’ll just keep building a fantastic line of products that match and some ways exceed your offerings, but at a fraction of the cost.