Google's Gmail Steals Microsoft's Exchange Enterprise Customers

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Gmail is predicted to account for 50 per cent of the cloud email solutions in the Enterprise market according to a Gartner study.

At present, cloud email makes up paltry 4 per cent of the total enterprise email market, but a new Gartner report called Google Gmail emerges as a significant threat to Microsoft in the enterprise predicts a shift in the near future, with the share growing to 20 per cent by 2016, and 55 per cent in 2020.

Although Gmail’s share of the enterprise email market was only 1 per cent, it accounts for half of the enterprise accounts using cloud email solutions.

“Other than Microsoft Exchange, Google Gmail is the only email system that has prospered in the enterprise market over the past several years,” said Matthew Cain, Gartner’s research VP in the US.

Cain believes the enterprise-cloud sector is a difficult industry. Companies such as Novell’s GroupWise & IBM’s Lotus Notes/Dominos are losing market share, while Cisco has closed its cloud email service.

Although Gmail is pinned as the go to cloud enterprise client, Cain believes it will be more difficult to configure Gmail to suit some businesses complex email requirements.

“Financial institutions report that Google is resistant to feature requests that would be applicable to only a small segment of its customers,” Cain said “Banks, for example, may require surveillance capabilities that Google is unlikely to build into Gmail given the limited appeal.”

Although Google is great at implementing front end tweaks to its cloud features, the company is reluctant to make modifications to its back-end operations.

“Large system integrators and enterprises report that Google’s lack of transparency in areas such as continuity, security and compliance can thwart deeper relationships,” he said.

“Gartner believes that, for most organisations, performing one more on-premises upgrade, which will take an organisation through 2014, is the most prudent approach.”