Google on June 15 will launch Chromebook for Business, a complete hardware and software as a service that will cost users $28 per device per month. Google announced the Chromebook for Business strategy this morning at the Google I/O conference in San Francisco. If the service works as advertised, Chromebook for Business could be a potential landmark move that disrupts traditional PC and notebook markets. Here are the potential implications for managed services providers (MSPs) and VARs.
Chromebook for Business will blend hardware as a service (HaaS) with software as a service (SaaS). The Chromebooks, under development from Samsung and Acer, will be pure web devices that also support offline applications — particularly Gmail and Google Apps.
The Google for Business service will include the Chromebook, a web management console, support, warranty and replacement hardware for $28 per user per month, according to Senior VP of Chrome Sundar Pichai. We have a complete recap of Pichai’s keynote on TalkinCloud, MSPmentor’s sister site. MSPmentor is meeting with Google this week to learn if there will be a Google Chromebook for Business channel partner program.
Key Considerations for Channel Partners
In the meantime some potential implications for VARs, MSPs and the broader IT channel:
- More than 5,000 developers, channel partners and customers are attending this week’s Google I/O conference in San Francisco. The energy is high…
- Various Chrome OS and Chromebook for Business announcements wowed attendees today.
- Google Chromebook for Business will likely launch around the time — or sooner — than Microsoft debuts Office 365, a complete cloud-based applications platform that will cost as little as $6 per user per month. However, it’s unclear if Microsoft will counter Chromebook for Business with some sort of bundled Office365-hardware service.
- It’s unclear if MSPs will be able to leverage the Chromebooks for Business Web management console. I am checking with Jeff Ragusa and other Google sources to see if Google will extend the dashboard to managed services providers (MSPs).
- I realize Chromebook for Business could also fail. If the user experience doesn’t work as advertised, customers could become frustrated with Chromebook dependence on web connectivity.
- Google’s Pichai said the typical Chromebook will take 3 minutes for initial day-one setup, and then boot times will be essentially instantaneous/instant on.
- Of course, many customers may reject the idea of storing all of their Chromebook for Business data in the cloud.
- Acer and Samsung will also sell the Chromebooks in a traditional sales model, starting at about $349 to $429. The first Chromebooks will debut on Amazon.com and BestBuy online on June 15.
- Google is not positioning Chromebooks as netbooks. Instead, Google is emphasizing the notebook terminology, perhaps because netbook sales have dropped in recenue months.
But the key point for MSPs: Pichai said Chromebooks for business will be “dead simple to manage,” suggesting that Google will potentially disrupt the traditional PC and notebook markets starting on June 15.
Still, Google Chrome for Business’s all-in-one service sounds disruptive. It will cost $28 per user per month for everything. I believe schools and education customers will pay $20 per user per month. I don’t know if a long-term service contract is required.
More thoughts soon on MSPmentor.
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Posted In: Hardware as a Service | Partner Program
Tags: Acer Chromebook | Chromebook for Business | Google Chrome OS | Hardware as a Service | Samsung Chromebook
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Update 1: At the present time Google plans to sell Chromebook for Business directly to customers, according to a spokesperson for the company. Not sure if that means zero opportunity for MSPs on this particular service… …
Update 2: Google sent me a second, revised statement. Now, Google states, certain value added Google Apps partners will be able to participate in the Google Chromebook for Business sales strategy. Details on TheVARguy.com now…
-jp
This is great that they’re bringing attention to HaaS.
What I don’t get is that the trade-off for it’s simplicity seems too high for a much more dumbed down experience (Chrome OS) you’ll be getting vs. Windows7 or MacOS. Apple is a great example that people are willing to pay for a better experience. All Google has made is a cheaper experience not a better one. :-/
I don’t get why they’re even bothering with this and taking their focus off of what matters? 97 cents out of every dollar they make is still due to advertising. I wish they stopped trying to shove what looks like MS Office 1.0 into a browser and instead improve their Pay Per Click system so I could get more site visitors.
Gerson,
Thanks for sharing your opinion. I agree: I’m not ready to give up my full-blown notebook for a Chromebook.
But I respectfully disagree with your thoughts about Google Apps. The Google Apps experience is no longer Microsoft Office 1.0. I spend less and less time in Microsoft Office, and more and more time in Google Apps. We use Google Apps in our business to build and share documents, collaborate and communicate more effectively.
I’m open to trying Office 365 when that launches. And I suspect I will never buy a traditional desktop Office suite again… I know I’m in the minority with that statement. But for 80% of my needs, cloud productivity apps are fantastic.
-jp
I agree with Joe. Google Apps has become MUCH easier to use on a daily basis over the last 12 months – rarely a reason to work out of it unless you really want to. But I think many SMBs, schools, non-profits, etc. will have a hard time justifying the cost of other applications+hardware over this solution.
Of course, there will be a counter to all of this from the Microsoft side of things – only a matter of time. The question is how much will channel partners be able to participate/benefit.
Mike
Great thoughts everyone, and thanks for the post Joe. On Gerson’s point about Google’s revenue being advertising: Compare this to Android, Honeycomb,Google phone, etc. If they control the platform and the experience, they control the advertising. I think users can expect in-OS ads. We shall see!
Another point I need to reinforce: Google Chromebook for Business is NOT just a mobile strategy. It’s a desktop PC replacement strategy as well. I think the products will be called Chromebox… basically a desktop appliance that plugs into Google cloud services. Expected to debut June 15 as well. I will share more thoughts soon.
-jp
I actually think the CromeBook experience will be a better experience than alternatives for the target users. Many users have a lot of difficulty keeping their PC or Mac running. I know this because I am constantly asked to help one person or another with their problems. These users may be better suited to a CromeBook experience. Additionally, while I agree with most posting here, I am not ready to give up a full blown Windows notebook for a CromeBook, I may be willing to use one some of the time for portability reasons. Overall, I like the direction Google has taken. Obviously, I would like to see a bigger, more well defined channel strategy, but perhaps that will come. I also think more choice is better.
Mitchell Cipriano
http://www.demandbydesign.com