Google Apps ----Revisited

CIO Peer Group Presentation

Joe DesutaCIO, First Team Real Estate

November 8, 2012

Agenda

• What is Google Apps and why are we talking about it?

• How the landscaped has changed and why

• My experience taking First Team to Google Apps-- Revisited

Google Apps Defined

• Google Apps is a cloud based email, productivity, and collaboration software.

• The market for cloud based business applications is heating up

• “We think about 3-4 percent of the enterprise email market is cloud-based today,” Matt Cain, an analyst with Gartner, wrote in a May 18 email to eWEEK, “and that Google and Microsoft have the majority of that market and are close to parity on seat count.” By the end of 2012, he predicted, some 10 percent of the email market will be in the cloud, expanding to 30 percent by the end of 2015.

Tools for today's workers

Gmail  Huge inbox with search.  Keep and find everything.

Talk  Business class IM and VC as easy as email.

Groups  Let users easily create and work in teams.

Calendar  Make sharing calendars and schedules easy.

Docs  Makes collaborating as easy as creating.

Sites  Allow users to manage their own sites.

Video  Unlock the power of video within your business.

Postini  Security and compliance solutions.

Google Cloud Connect  Co-authoring in Microsoft Office.

Google Apps for Business

Enterprise integration• Active Directory/LDAP• Exchange free/busy

Client connectivity• Outlook• Blackberry• ActiveSync

Support and Reliability• 99.9% SLA• 24x7 phone support

$50 / user / year

1 year archive    + $1310 year archive  + $33

Updated Market share & PredictionsWe believe that Gmail currently has no more than 1% of the enterprise email market, but it has close to half of the market for enterprise cloud email, where it competes with Microsoft, IBM and myriad small vendors. While cloud email is still in its infancy — at 3% to 4% of the overall enterprise email market— we expect it to be a growth industry, reaching 20% of the market by year-end 2016,

and 55% by year-end 2020.

Based on this growing demand for cloud email Services, Google's prospects for continued success in the email market are strong. At this point, Google should be considered the only significant threat to Microsoft in the enterprise email market.

Matt Cain, an analyst with Gartner, wrote in white paper 8/18/2011

New Year… New Discussion

• Discussion isn’t about education on what Google Apps is anymore.

• Discussion is Gmail vs Office 365

• Enterprise Cloud Email is a main stream alternative for consideration, even though it is still a niche in share

• Have you seen or heard interest in this market in your companies?

What’s changed? Why do we care?

• As part of the June 2011 launch of Office 365, Microsoft released a cloud email service based on Exchange 2010

• After 5 years, Google is gaining traction with larger customers (see table)

• Google has stimulated demand by offering free enterprise versions to schools and consumers are already familiar with the interface

4 million businesses have gone Google

5,000 more sign-up every day

Google Apps Customers

Name Employees Revenue Users Previous System

Rentokil 78,242 $2.5B 35,000 Multiple - including Exchange

Electronics Solutions Company

60,000 $12B 34,000 Exchange

City of LA 34,000 Government 34,000 GroupWise

Valeo 49,000 30,000 Notes

Motorola 53,000 $22B 20,000

Sanmina SCI 37,000 $5B 15,000 Exchange

MWV 20,000 $6B 12,000 Notes and Exchange

Genentech 12,000 $13.5B 12,000

Diversey 12000 $3B 12,000 Notes

Sabic Private Private 12,000

KLM 31,182 11,000 -

Avago 3,000 $1.5B 3,000 Exchange

About First Team

• Founded in by CEO Cameron Merage in 1976

• # 1 independent Southern Cal, Sold more homes in Orange County than any other broker in the last 10 years

• 40 locations supporting over 2,000 employees and agents. Full Service including commercial, title, escrow and mortgage.

IT Environment before Going Google

• Email was in house on MS Exchange Server 2003. Clients were mix of OWA, Outlook, and Outlook Express

• Storage requirement for Email Data exceeded 4 TB (Terabytes)

• No enterprise collaboration software in place at First Team though Sharepoint was used for Intranet capabilities

Business Case for Going Google

• Email reliability – Business goal was to guarantee uptime for First Team agents

• Cost justify by forgoing the need to upgrade Exchange and expanding storage needs

• Leverage Google Apps as a means to provide a competitive advantage

• Partner with Google for future innovations

Current State of Going Google

• Migration is in progress with about 1500 users migrated to Google so far

• Switching email systems and providing collaboration is transformational…BUT

• Dual delivery allows for migration to happen on a per office basis, fostering grass roots adoption

• Many users already know the Gmail product and it is much better than OWA

Google Apps as a Differentiator

• Google Apps enables collaboration on several levels: Company level, Office level, Team level, and Agent-Client level

• Early examples include “automated” Caravan tour lists and agent-client communications.

• Clients are often Gmail users so it makes working with our agents easier providing the real value of convenience

Google Migration -- Revisited

• Migration harder than it should have been better approach: rip-the-band-aid-off

• Grass roots adoption of innovation -varied• Reliability and Security has been achieved • Mobile has been easy to support• Can’t skimp on training even though many

users already know the UI• Bad Rep for Enterprise support is earned

• Constant change to the UI is annoying

Summary

• Going Google was the right bet for First Team and merits consideration

• Cloud based email and Apps are on the rise

• Cost justification and ROI can be realized given the right set of circumstances