Microsoft recently put the Open for Business sign on it's Office 365 product, and it seems to be targeted directly at Google Apps. Office is still Microsoft's bread and butter, so it didn't take kindly to Google muscling in on its document domination. I had a chance to try out the new Office 365 service this week, and while it appears it and Google Apps do much of the same thing, there are several key differences (and price tags). Let's examine both products to see how they compare.

Interface

Google and Microsoft come from different sides of town when it comes to user interface theory. Google prefers a spartan, minimalist functionality, while Microsoft likes to add bling and flashy menu designs. Both sides have advantages and disadvantages in speed, usability, and efficiency, but which one is better?

Your web browser is your desktop with Google Apps. Everything you do is within the confines of this universal tool. Gmail handles your email, documents are created in Google Docs with your browser, collaboration is performed through Google Talk or inside of documents themselves. This has the advantage of simplicity: no software needs to be installed, the controls are familiar, and you can work from any device that can connect to the Internet.

On the flip side, Office 365 requires software plug-ins to be installed that links you up to the cloud. Microsoft Office needs to be installed on your computer if you want to use the offline features, and the .NET framework has to be installed for everything to run properly. Lync 2010 is Microsoft's collaboration solution, and this requires a server to be installed as well as Active Directory to be in place on your network. A  list of system requirements is listed on Microsoft's website if you want to take full advantage of Office 365's features. Compared this to Google's requirements (a supported web browser), it's a complicated and costly setup.

Document Creation and Sharing

Microsoft has had over two decades to polish its Office software suite, and this experience is shown in Office 365. Advanced formatting and features are read much more accurately than in Google Apps. The same formats, templates, and tools that are on the desktop are also available on the web. This means you can create a document on your desktop, upload it to the web, and edit it without worrying about a loss of formatting.

In comparison, Google Docs is a bit more "bare-bones." Advanced features are limited, but it is still a very functional suite. What Google Docs lacks in format options is makes up it sharing and accessibility. I was able to import most of my Microsoft Office documents from my desktop to Google Apps via the free Office Connect plug-in with no problems. This made the documents on my work computer accessible from my home computer and even my smartphone. It's most powerful feature is the ability to let groups work on the same document without the need for email attachments -- you simply choose which contacts you want to share with and they instantly have access. Changes show up in real-time and you can chat while in the document, so nobody steps on anyone's toes.

Microsoft's solution for document sharing is Sharepoint. We previewed the Sharepoint platform for a couple of months in our office and were not impressed. It seemed to make everything more complex than it needed to be. The software will keep a log of document changes, who currently has a document open, and integrates with MS Office applications on your desktop, but it requires a dedicated IT person to set up and administer the system. Google Apps does all of this by default without the need for another platform.

Chat and Communication

Office 365 uses Lync (aka Office Communication Server) for chat and communication. Lync integrates with Microsoft Office and Office 365 products and allows you to see who's available. It's an additional service that requires Active Directory and a server. Lync does handle VoIP and desktop sharing, so it can be used as a full communications platform.

Google's communication solutions are Google Talk and Google Voice. They're integrated with Gmail, and can be used to chat with contacts as well as place VoIP calls. At this time, neither application allows for screen sharing, and it's not as tightly integrated as Lync,  so Lync does have some advantages there. Otherwise their features are about the same.

Cost

It is clear that Office 365 and Google Apps have very similar features and functionality. Which is more affordable?

Microsoft Office 365 starts at $6/month per user. Not bad, but hidden costs come into play which can make that price a bit misleading. For full functionality of Office 365, you'll need Active Directory in place on your network, an Exchange server (either hosted or on site), and servers for Lync and Sharepoint, not to mention a staff to run them or a service to host them. I did some research on the total costs taking these features into consideration, and the actual price comes out to between $20-$50/user on the low end. Prices go even higher if you want to install a local copy of MS Office on each computer for offline document use (Microsoft allows you to use a local copy of Microsoft Office Professional Plus for $12/month).

Google Apps has a few pricing plans: free for under 10 users, $5/month per user for more than 10, and a discount of $50/year if you want to commit. Since all features are integrated into the web interface, there are no extra services or servers to employ, therefore IT costs are kept at a minimum.

Office 365 is definitely a larger investment, but Microsoft feels the extra "feature depth" justifies the price difference. From my testing, the things they seem to be charging a premium for are features that very few people tend to use. They've had a problem comprehending the needs of a small business in the past, and it still seems that they are clueless on the subject. Google Apps is more realistic in it's feature set, and truthfully it almost seems underpriced.

Which One Is Best?

Both products can do the same thing, just using different methods. The best way to compare the two is using a cake analogy:

Office 365 is a lot of frosting with little cake. Although this is French bakery quality frosting made by world-class chefs, you end up paying way too much for quality poured into the wrong places. It's impressive but not very satisfying.

Google Apps is a box mix cake with canned frosting. It's easy to make, reasonably priced, works for most situations, and still enjoyable.

For most small and medium sized businesses, Google Apps is going to be the more sensible choice. For a few special cases and enterprise level companies, Office 365 should be considered as the tools seem to be geared toward a huge infrastructure. At some point in the future the two products may meet more in the middle, but Microsoft isn't really known for lowering their prices, so I doubt we'll see equilibrium anytime soon.

Besides search, Gmail is Google's most popular product. Its immense storage capacity and the inclusion of a robust office application suite makes it one of the most useful services on the Internet. However, Google Apps accounts come in four main flavors, and many do not understand the difference. Using the correct type of Apps account ensures you are leveraging these powerful tools to your advantage.

Gmail Personal

Gmail is the free entry level version of it's email services... sort of an "Apps Basic."  After signing up, you receive an email account that ends with @gmail.com, about 7GB of mailbox storage, and access to Google Docs, Calendar, Picasa, Talk, Sites, and Blogger. The account is free, but the only technical support is in the form of help files and forum posts.

Google Apps account

Google Apps is a type of Gmail account associated with your website domain. Your email address will end with @yourdoman.com, and features are similar to a free Gmail account. Calendar, Docs, Sites, and Blogger are available, as is the same 7GB of email storage. Being associated with a domain gives your email a more professional look, and document collaboration is made easier by being able to easily share documents within your domain. This type of account was formally known as "Google Apps for Your Domain," then they changed it to "Google Apps Standard Edition." It now is known as plain "Google Apps."

This type of account is also free as long as you own your own domain. Sounds good, but there is a catch -- it's limited to 10 users or less. Google Apps is a good way for groups, organizations, and clubs to coordinate, but a ten user limit is a low ceiling. Like Gmail, support is offered in the form of forum posts and help files, so small businesses going this route may need some additional assistance with setup or migration.

Google Apps for Business

Google Apps for Business is the heavy hitter in the Google Apps arsenal. It offers a powerful and scalable platform on which to base business communications. Mailbox space is upped to 25GB, with the addition of Outlook and Blackberry Sync. Along with the standard Docs and other apps, Google Video and Google Groups for Business are also included for more effective video and document collaboration. Reliability is ensured with a 99.9% uptime guarantee as well as email and phone support.

Migration tools are provided to help your business move email, contacts, and calendars off of legacy systems, but many Google Apps resellers will actually handle migrations for you (which I would recommend as migrations can get a bit hairy if you don't know what you're doing). Postini Message and Security is available to if additional security layers are required. Administration is performed via a provided Google Apps Dashboard.

Google Apps for Business runs $50/year (or $5/month) per account, which isn't too bad of a deal if you consider the costs of alternatives like Exchange and SharePoint servers.

Google Apps for Non-Profit/Education

Google is all for helping organizations. They offer Google Apps for Business accounts free of charge to Non-Profit organizations and Educational institutions. All of the features such as a 25GB mailbox, Docs, and other apps are included. Many Google Apps resellers offer very low cost migration and support to assist in transitioning to the new platform. Apps for Non-Profit/Education is proving to be very popular with various charities as the collaboration tools allow multiple offices to pool their information and resources together instantly, therefore allowing donations and funding to work harder towards their causes.

Comparisons

If you'd like to compare the features of the various Google Apps accounts, take a look at this chart. While small groups may benefit from the standard Google Apps package, a business of any size will probably want to opt for the actual Google Apps for Business due to the scalability...you don't want to be limited if you find yourself needing more accounts or mailbox space, plus the extra support and tools make things a lot easier to manage.

Migration costs have to be considered as well. Some of the conversion tools can be a bit tricky, so it may be worth the cost of using a service to assist in the transition. Migration services are relatively low cost and have experience moving many different infrastructures to Google Apps. You'll want to weigh the costs and downtime of doing it yourself vs. having a service provider handle it for you.

Wyoming:

The first state to create a national park (Yellowstone).

The first state to claim a national monument (Devil's Tower).

The first state to allow women to vote.

The first state to go Google.

...wait, what was that last one?

Wyoming doesn't exactly have the reputation as a trailblazer state, but that perception should change. It has an impressive list of firsts, and converting all its state employees to Google's cloud based Apps platform adds to the impressiveness. Government agencies are known for being slow to adopt new technology, and an entire state moving to something as modern as Google Apps is almost unheard of.

For those not in-the-know, Google Apps is Google's cloud based communications and collaboration platform. Users receive a 25GB mailbox, a suite of tools for document creation that allows sharing without sending attachments, scheduling, video hosting, and web site hosting. Since these tools are Internet-based, employees can work from any location and any Internet connected device, which in turn allows employees from across the state to easily contact and work with one another. The cost savings from efficiency alone will save a lot of tax dollars. Governor Matt Mead says the change will save the state "one million dollars per year."

In 2009, the City of Los Angeles switched it's 30000 employees to Google Apps with great success. Randi Levin, Chief Technology Officer of the City of Los Angeles, talks about the city's success:

"Because the email and other applications are hosted and maintained by Google, ITA employees who previously were responsible for maintaining our email system can be freed up to work on projects that are central to making the city run.

By ITA estimates, Google Apps will save the city of Los Angeles millions of dollars by allowing us to shift resources currently dedicated to email to other purposes. For example, moving to Google will free up nearly 100 servers that were used for our existing email system, which will lower our electricity bills by almost $750,000 over five years. In short, this decision helps us to get the most out of the city's IT budget."

My own office has used Google Apps as a platform for a few years now, and the sheer convenience and efficiency of having "everything available everywhere I go" has become a concept I can't live without. An example of government efficiency doesn't come along very often, so Wyoming's move is great news. Hopefully others will follow their lead and start chanting the strange phrase "I want to be like Wyoming."

Firefox 4, we barely knew ye.

Firefox 5 is now available on Mozilla's Web Site for Windows, Mac, Linux, and Android only three months after the release of Firefox 4. The latest version of the popular web browser adds a few interface tweaks, security enhancements, and revamped add-on updating to smooth things out. Firefox 5 keeps a lot of the new interface enhancements from the last version. Most of the changes seem to be either bug fixes or minor changes. The Mozilla Blog claims that the new version introduces over "1,000 improvements and performance enhancements," but I'm not sure I could find them all. There is some Foxy goodness under the hood though. Here's six features that drew my attention:

1. Site Specific Menus

2. Sync

3. File Upload Tracking

4. Built-in PDF viewer and MP3 player

5. Add-On Updates

6. Improved Search

iDevice users got a nice surprise this week on their Gmail and Google Apps email accounts. Google has tuned up their email app, adding new functionality, search, and calendar enhancements.

Gmail and Google Apps users can now take advantage of the new sync service, which allows users to search through ALL of the messages in their mailbox... not just the ones stored locally on the device. Also, Google Sync for iOS now supports the "Send Mail As" feature, giving the ability to send email from multiple accounts. Google added this feature to Android phones earlier this year.

Calendar sync  now allows users to edit, accept, or decline events directly from the Calendar app. This highly requested feature greatly improves mobile scheduling functionality.

Keep in mind that you must set your email account up as an "Exchange" account in the email app to gain sync functionality. If you need some help, TOAST.net provides a guide to do this: How to Configure Your Google Apps Account on the iPhone/iPad

Source: Google Mobile Blog