Posted by Larry Dignan @ 2:09 am

Microsoft Online Services’ GlaxoSmithKline win is a nice victory for the software giant, but it may be a bit premature for too much chest thumping over Google Apps. On the other side of the equation, Google is likely to have a helluva a battle on its hands. 

But the cloud is big enough for both players–especially if you believe that Google and Microsoft play in two entirely different markets. 

As Phil Wainewright noted, Microsoft 100 mg viagra Online Services, the company’s hosted Exchange, Sharepoint and LiveMeeting division, won a 100,000 seat deployment. In addition, Microsoft Online Services are going global (statement). Meanwhile, Ron Markezich, corporate VP of Microsoft Online Services, took a few shots at Google’s efforts to penetrate the enterprise. Markezich said:

“Google we really do not feel is ready for the enterprise. They’re offering three-nines SLA and they’ve missed three of the last six months.”

Last week, Gmail outage backs that statement up a good bit. 

And honestly, I don’t think Google is enterprise strength. Microsoft won because its hosted business already plays to its enterprise strength–Exchange and Sharepoint. Google has no real answer for those applications. 

Instead, Google will play in the small office, home office market and appeal to small businesses. As these small fries grow up perhaps they turn into big businesses. For now, however, Google Apps will play downstream. If anything, Google Apps is designed to take on Office. But Microsoft will have an answer for that too. 

Add it up and you have:

• Microsoft continuing to be the enterprise juggernaut whether it’s hosted or on-premises apps;
• Google continuing to be a pain in Microsoft’s rear by giving it a small run with Google Apps. But let’s get real: Google Apps is there to distract Microsoft from search. 

What would change that equation? A Google acquisition of Zoho. Zoho could be a real pain to Microsoft and could give Google entry into higher end SaaS markets. But even then Microsoft has the enterprise leverage. The real battle between Google and Microsoft will be for the next generation of corporate America. My hunch is that both sides could win simply because they are massive and well capitalized. While zero sum outcomes may be good entertainment it’s highly unlikely that Microsoft or Google will grab all the spoils.