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GE Drops Google, Selects Zoho

By Daya Baran at September 21, 2008 42 Comments  

General Electric has decided to forgo a partnership with Google and has formalized a strategic partnership with Zoho for its 400,000 desktops. GE made the decision after a vigorous evaluation of both products. ”GE is a master at taking costs out of established processes, they do it relentlessly and continuously and they know how to evaluate and manage the risk of working with start-ups. Where GE break a trail, others are likely to follow,” according to Bernard Lunn of ReadWriteWeb.

A GE spokesperson who did not want to be identified said their decision was based around issues of personal and corporate privacy, functionality, support, features and Zoho won hands down. The spokesperson said the Google application was intrusive and the ads started to become a nusiance. I tested both applications today. Google Spreadsheets was a disaster. I have not noticed any major change with it over the past year. However I would encourage you to try both products to get a feel before you choose one.

Zoho is a remarkable company. They have out maneuvered all the usual suspects such as Microsoft, Google, and Salesforce at their own games. Not too long ago, the company turned down a takeover offer from Salesforce. Zoho is an example of the new Web economics at work. The company hails from India, has never taken venture funding and has a ten person operation in Silicon Valley. Yet, if you look at its suite of products you would think it has a Fortune 500 company backing it. The company employees 600 engineers, developers, product managers, and technicians in India that develop and build its products. As a result, that’s how the company supports GE, Swisscom (the AT&T of Switzerland), and other large customers. The entire operation has been boot-strapped and today, the company generates revenues of $40 million a year from all its divisions and makes a profit of $1 million a month. The company also does not hire MBAs or Ivy League school grads because business today moves so fast that they seek people with real world experience versus those who have learned it from a text book. Zoho was the winner of Best Web 2.0 Apps at our Web 2.0 Conference in January.

This was a major blow for Google and its cloud computing initiatives. Google has won hands down in search, search advertising, and with some consumer products such as Gmail but on the corporate side, the traction has been slow and Google needs the corporate market for the next cycle of its growth. Apparently, the Google representative was more interested in showing GE how they could make money from Google ads and that was not GE’s objective.

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42 Comments

GE Drops Google, Selects Zoho | Venture Chronicles said...

[...] A GE spokesperson who did not want to be identified said their decision was based around issues of personal and corporate privacy, functionality, support, features and Zoho won hands down. The spokesperson said the Google application was intrusive and the ads started to become a nusiance. I tested both applications today. Google Spreadsheets was a disaster. I have not noticed any major change with it over the past year. However I would encourage you to try both products to get a feel before you choose one.[From GE Drops Google, Selects Zoho] [...]

September 22nd, 2008 at 9:42 AM
GE stops dating Google and marries Zoho Apps instead said...

[...] is a big deal. GE has signed a deal to put Zoho Applications on 400,000 desktops. Or webtops, really. Congratulations to Raju and his [...]

September 22nd, 2008 at 10:23 AM
Jayant Kumar said...

When I evaluated ZOHO Business, it would not allow MS Excel to be imported. Is that still a restriction?

September 22nd, 2008 at 12:41 PM
SearchCap: The Day In Search, September 22, 2008 said...

[...] GE Drops Google, Selects Zoho, http://www.webguild.org [...]

September 22nd, 2008 at 3:05 PM
SearchCap: The Day In Search, September 22, 2008 | PAGE PROPELLER NEWS said...

[...] GE Drops Google, Selects Zoho, http://www.webguild.org [...]

September 22nd, 2008 at 3:08 PM
E-researching » Blog Archive » SearchCap: The Day In Search, September 22, 2008 said...

[...] GE Drops Google, Selects Zoho, http://www.webguild.org [...]

September 22nd, 2008 at 3:10 PM
Craig said...

Please note, I am no Google booster but…

“The spokesperson said the Google application was intrusive and the ads started to become a nusiance.” – Huh? Our organization runs Google Apps and there are no ads. In fact, I haven’t seen ads in the personal edition either.

“I tested both applications today. Google Spreadsheets was a disaster.” HUH? How is it a disaster? I use Google Spreadsheets every day and I love it. Missing all the functionality of Excel? Yes. A disaster? Not by any stretch of the imagination.

Check your facts.

September 22nd, 2008 at 3:14 PM
Huh Jackson said...

Hmm. This seems wrong.

The Premier edition of Google Apps doesn’t show ads.

And I don’t see what would be “intrusive” about Google Apps.

I’m perfectly willing to believe Zoho has more features and better support, but those other bits seem suspicious.

September 22nd, 2008 at 3:43 PM
andy said...

There’s something that rings a bit false in the nameless employee quote. “The spokesperson said the Google application was intrusive and the ads started to become a nusiance (sic).”

We use Google Apps, and there are no ads in the paid version. If you write a follow-up to this, you might talk a bit about this.

September 22nd, 2008 at 4:30 PM
Mark Bean said...

I don’t see a press release anywhere for this and as far as I heard they are only evaluating Zoho at this time.
Care to comment?

September 22nd, 2008 at 4:45 PM
Sekhar Ravinutala said...

“…ads started to become a nusiance…”

Was GE looking at Google’s free standard edition? How’s that a valid comparison?

September 22nd, 2008 at 4:53 PM
General Electric elige ZOHO - Foros de CHW said...

[...] premio. Nah, no se llama as

September 22nd, 2008 at 5:23 PM
Zoho Defies All Odds … : Republic Of Internets said...

[...] a significant announcement by GM today that it’s dropping Google and choosing Zoho to outfit them for all their online [...]

September 22nd, 2008 at 7:17 PM
Sach said...

At the end of the day it was their broad portfolio (as you eluded to) and their department specific apps like Zoho People that sealed the deal for GM

http://tinyurl.com/3pmms5

September 22nd, 2008 at 7:28 PM
Has Zoho won the online productivity apps arms race? | AccMan said...

[...] arms race. Jeff attributes this to the tipping point ‘win’ of 400,000 GE seats. Jeff quotes from WebGuild where an un-named GE person allegedly says: A GE spokesperson who did not want to be identified [...]

September 22nd, 2008 at 9:28 PM
The Inquirer ES : General Electric prefiere a Zoho que a Google said...

[...] WebGuild // [...]

September 23rd, 2008 at 1:07 AM
GE dumps “intrusive” Google for Zoho « Dynamic Disruption said...

[...] “intrusive” Google for Zoho Jump to Comments An anonymous GE spokesperson told Silicon Valley WebGuild that the corporate megalith has punted on Google’s browser-based office applications in favor [...]

September 23rd, 2008 at 2:05 AM
Channel Sales said...

I have been using Zoho invoice for a while now and I love it! My only gripe with Zoho applications is that they do not all use the same interface design standards. Hopefully they will address that issue soon.

September 23rd, 2008 at 5:48 AM
Zoho Apps: General Electric deal? said...

[...] Apps that just celebrated their 3rd anniversary  could be signing a deal with General Electric : Unconfirmed reports are circulating that GE already chose Zoho, but Oliver Marks at ZDNET set the record [...]

September 23rd, 2008 at 6:11 AM
Google out, Zoho in — to the tune of 400,000 desktops at GE « Barton’s Blog said...

[...] to Daya Baran’s blog “A GE spokesperson who did not want to be identified said their decision was based around [...]

September 23rd, 2008 at 7:47 AM
Clipmarks Internal Clog » GE Ousts Google for Zoho said...

[...] Ousts Google for Zoho September 22, 2008 – 11:37 am by dave Clipped from http://www.webguild.org General Electric has decided to forgo a partnership with Google and has formalized a strategic [...]

September 23rd, 2008 at 9:29 AM
Landslide for Cloud Computing? « Authsider said...

[...] Published September 23, 2008 Cloud Computing , Economy , IT , SaaS , Trends Well, I guess this is a big one: General Electric has decided to forgo a partnership with Google and has formalized a [...]

September 23rd, 2008 at 9:59 AM
Wilma Prego-Gilbert said...

I’m a big Zoho fan myself, but this article is pure baloney!

See
http://blogs.zdnet.com/collaboration/?p=145

September 23rd, 2008 at 10:28 AM
houseofseo.com » Blog Archive SearchCap: The Day In Search, September 22, 2008 said...

[...] GE Drops Google, Selects Zoho, http://www.webguild.org [...]

September 23rd, 2008 at 11:09 AM
SearchCap: The Day In Search, September 22, 2008 - SeoAlchemist - How to make gold with SEO. said...

[...] GE Drops Google, Selects Zoho, http://www.webguild.org [...]

September 23rd, 2008 at 2:02 PM
Oliver Marks said...

Please read this post I wrote on ZD Net to clarify this.
http://blogs.zdnet.com/collaboration/?p=145

“For the record and as Dr Sukh Grewal has clearly outlined, no decision has been made on Google Docs, Zoho or any other vendor at this time, but a rigorous evaluation is taking place.”

your post is an irresponsible piece of opportunism Daya. Not good.

September 23rd, 2008 at 3:49 PM
Zoho: Klein schlägt Groß | said...

[...] als Kunden gewonnen und damit einen ziemlich großen Fisch an der Angel und sich gelichzeitig gegen Microsoft und Google durchgesetzt welche mit MS Office Live Workspace und Google Apps ähnliche Produkte [...]

September 23rd, 2008 at 11:03 PM
Chris said...

History repeats itself.
David takes on Goliath once again.

September 24th, 2008 at 5:14 AM
John Gore said...

Good post. Always ahead of the curve. Readwriteweb says that beat out Microsoft too. MBA are master bullshiters. They will sink your company see Lehman & AIG.

September 24th, 2008 at 6:52 AM
googlistwhokowns said...

Your story is dead wrong. Zoho has NOT been selected. There is no such selection any where – else we would have seen a press release. Verify before you publish and spread erroneous information.

September 24th, 2008 at 9:58 PM
lekuanhu said...

Only wish it were true!! I am afraid Mr. Baran has some bad information. Dream on! you think Microsoft will not use their billions to keep the GE’s of the world in line I am afraid your story is just bad information. Just does not ring true. National Enquirer stuff.

September 24th, 2008 at 10:09 PM
Zoho quietly builds Google competitor — mathewingram.com/work said...

[...] Google, even though it is using Google’s own Gears service to do so. According to at least one report, General Electric has chosen to go with Zoho’s app suite instead of Google [...]

September 30th, 2008 at 6:26 AM
Cloudwork » Blog Archive » Cloud Computing said...

[...] This blog will guide you through this amazing set of programs, which even big corporations such as GE are now using and it touted to take over from Microsoft [...]

October 3rd, 2008 at 1:31 PM
Watching The Clouds | The Other Bloke's Blog said...

[...] is very heady stuff. However it all came down to earth just a short time later with a headline that GE Drops Google, Selects Zoho. General Electric has decided to forgo a partnership with Google and has formalized a strategic [...]

October 3rd, 2008 at 7:20 PM
freak said...

“Jayant Kumar said…

When I evaluated ZOHO Business, it would not allow MS Excel to be imported. Is that still a restriction?”

HI jayanth,

i have been using zoho for a long time and havent had any problems with imports of MS XL sheets. may be u can contact the sheet support team for further details.

October 11th, 2008 at 8:03 PM
Washington DC latest to drop Microsoft for web apps | kNow Media said...

[...] The company first switched its 400,000 desktops from Microsoft Office to Google Apps, according to WebGuild. But in September, GE switched to Zoho due to privacy concerns, Zoho’s broader application [...]

October 13th, 2008 at 6:32 AM
Google Takes On Washington … As a Client? | ChangeForge | Ken Stewart | Where business and technology collide said...

[...] GE seems to agree. In September, GE dropped Google and chose competitor Zoho Office Suite. [...]

October 23rd, 2008 at 8:29 PM
Websites tagged "readwriteweb" on Postsaver said...

[...] – GE Drops Google, Selects Zoho saved by squamosity2008-10-10 – Gospelr is like Christian twittering saved by oscarcpz2008-10-06 – [...]

November 2nd, 2008 at 9:02 PM
Zoho Apps: General Electric deal? | SulVision said...

[...] Apps that just celebrated their 3rd anniversary  could be signing a deal with General Electric : Unconfirmed reports are circulating that GE already chose Zoho, but Oliver Marks at ZDNET set the record [...]

November 4th, 2008 at 5:04 PM
Zoho Apps: General Electric deal? | Css Edge said...

[...] Apps that just celebrated their 3rd anniversary  could be signing a deal with General Electric : Unconfirmed reports are circulating that GE already chose Zoho, but Oliver Marks at ZDNET set the record [...]

November 21st, 2008 at 1:00 PM
E said...

Sounds Like Web Guild is in a vendetta with Google given they dropped their sponsorhip…

January 6th, 2009 at 10:02 AM
Firefox Drops Google, Selects Yandex said...

[...] Related: GE Drops Google, Selects Zoho [...]

January 13th, 2009 at 11:08 AM

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