Is “Affordable” Google (NASDAQ:GOOGL)’s new Game plan?

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By jcameron on October 16, 2014 Intl News

When it comes to product development or innovation, Google (NASDAQ:GOOGL) hasn’t performed as well as its competitors. But recently, Google (NASDAQ:GOOGL) introduced “Chromebooks for work”. At just $50, Google (NASDAQ:GOOGL) enables users access to Google (NASDAQ:GOOGL)’s advanced features and support available on Chrome OS.

This is an effort on Google (NASDAQ:GOOGL)’s part to ensure that as low as £200 priced Chromebook are not only useful to students, but can be used by professionals. It gives them the ability to access many Google (NASDAQ:GOOGL) services that run the SAML (Security Assertion Markup Language) standard. This is an added advantage for users who bring their own device to work, allowing them to switch between their professional and personal accounts. It also gives users the freedom to install or block apps, alter network levels for security purpose, customize homepage ability to transfer bookmarks between Chromebooks and mobile.

Another added advantage of Chromebook is significantly reduced time frame for IT setups. All these features have attracted names like Woolworths (OTC: WOLWF), Auberge Resorts and Chapter Health. The big question is whether “Chromebooks for work” will attract medium business setups, and how will this adaption effect Microsoft (NASDAQ:SFT) and Apple (NASDAQ:AAPL).

At this stage Google (NASDAQ:GOOGL)’s ability of time efficiency and low cost is working it its favor. It further caters to users by providing them a virtual environment with the help of VMware (NYSE:VME) and Citrix (NASDAQ:CTXS). Virtualization has worked in Google’s (NASDAQ:GOOGL) advantage. They are now able to provide low cost Chromebooks that are quickly replacing Windows laptops. As a response Microsoft (NASDAQ:SFT) came up with an extremely cheap version of Windows 8.1 laptops. Microsoft (NASDAQ:SFT) is desperately trying to stop customers from switching, hence a cloud based platform, very similar to the Chrome experience, priced at just $50 per year, has been introduced.

Google (NASDAQ:GOOGL) plans to take over the cloud office market completely from Microsoft (NASDAQ:SFT). At this stage the office software is used by over 50 million people. This number is expected to increase by 33% in 2017 and then to 60% in 2022. On the other hand, a survey indicated that 58% of these users were planning to switch from Microsoft (NASDAQ:SFT) Office. Google (NASDAQ:GOOGL) Apps claimed of having 33% of the market share in 2007 and that has risen to 50% in 2012.

Google (NASDAQ:GOOGL) is faced with two big challenges. Firstly the joint venture of Apple (NASDAQ:APPL) and IBM (NYSE:IBM) to create a combined cloud platform. Through this strategy Apple (NASDAQ:APPL) can run IBM (NYSE:IBM) cloud apps for iOS devices, tech support and other management tools.

Second challenge at hand is the Chromebook’s security. These threats have been a problem for a while, and Google (NASDAQ:GOOGL) hasn’t been able to address them properly. Chrome OS could be easily hacked through browser extensions and outside third party like NSA.

In fighting these security threats, Google (NASDAQ:GOOGL) enterprise is aiming towards creating a Chrome experience that is affordable and can cater to all sort of business needs.