The battle for corporate software customers is heating up, Microsoft Corporation (NASDAQ:MSFT) having lost one of its biggest customers to fierce rival Alphabet Inc. (NASDAQ:GOOGL). Media Measurement firm, Nielsen with over 50,000 employees has parted ways with the software giant.
Google vs. Microsoft
Nielsen staff will now use Google’s Docs and sheets instead of Microsoft’s Word and Excel applications, an indication that Google is finally catching up to its fiercest rival. In addition, the media rating firm has also dropped Microsoft’s Skype in favor of the search giant’s equivalent for video conferencing purposes.
Nielsen’s move is a big win for Google. However, the search giant has a long way to go to catch up to Microsoft which controls nearly four times market share when it comes to corporate software. Google has never released sales of its software business. However, Gartner analyst Craig Roth believes the company’s G-Suite generated revenues of $1.6 billion last year, compared to Microsoft’s Office 365 $5.7 billion.
Google’s Corporate Software Investments
In a bid to grow revenues from the cloud business, the search giant has embarked on an aggressive marketing campaign as it looks to sign as many corporate clients as possible. Google is also banking on its popularity with millennials to steal clients from its peer.
The fact that a good chunk of millennials are familiar with its Gmail app and Google Docs all but continues to give it a competitive edge when targeting firms whose employees are below the age of 35 years. The search giant is also winning contracts from marquee companies such as Verizon and Netflix
Google is, however, facing an uphill task to convince some fortune 500 companies of why they need to sign up for its corporate software at the expense of Microsoft’s. The fact that the company’s business model is one that focuses mostly on consumers has not gone well with some tech giants. There is always concerns that the company might start scanning employee’s emails for ad targeting purposes.
Google stock was up by 0.61% in Friday’s trading session to end the week at $958.33 a share.