IBM's new web-based email to challenge Google

Written on the 5th of October 2009 by News.com.au Article

 IBM is offering a basic web-based email service at a price that undercuts a plusher offering by web giant Google.
The computer company pitched its new LotusLive iNotes as an alternative to the email service Google has been promoting as part of a campaign to win businesses over to using applications hosted as online services, known as cloud computing.

"Email and other collaboration services are the right entry point for many companies to realize the promise of cloud computing," said IBM Lotus Software general manager Bob Picciano.

"But, only if clients feel confident they're getting business-grade service from a trusted leader in enterprise services."

Software provided online as a service instead of being purchased and installed on home or office computers has been a growing trend accelerated by tough economic times because it is cheaper to "rent" than to buy software.

Google has been enticing users to a suite of online applications offered as services, many of which compete with text, email, accounting and other software sold by Microsoft.

The California-based company stumbled last month when its web-based email went offline for a few hours, affecting millions of users.

IBM, based in New York State, is playing up its reputation as a business technology veteran and launching iNotes with "aggressive" pricing of $US36 ($41) per user per year.

This is about 25 per cent less than what Google charges for a more robust email service with far more memory capacity than iNotes and added features like word processing and video.

The iNotes cloud service allows "overburdened IT departments" to take advantage of "IBM's leadership in enterprise collaboration," according to the firm.

IBM's offering does not have as many bells and whistles as Google's, but the technology giant could attract more customers because it has decades more experience serving the business market. Its products include Lotus Notes, one of the world's two most widely used email programs.

Google, on the other hand, generates the bulk of its revenue from advertisements placed on free search products targeted at consumers. It is just getting into the business of selling to businesses.

"The IBM brand will help a lot," said Forrester Research Inc analyst Liz Herbert.

iNotes will also compete with a web-based email service from Microsoft that costs about $138 per user per year, according to the software maker's website.

IBM says its cloud-based service for email, calendar and contact management will be launched this week.

iNotes will also compete with a web-based email service from Microsoft that costs about $138 per user per year, according to the software maker's website.

IBM says its cloud-based service for email, calendar and contact management will be launched this week.

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