Zoho Docs…At it again

Today I came across this post on eWeek which describes how Zoho is beating Google Apps to SaaS file management. Zoho is launching Zoho Docs, which unlike Google Apps, will be able to store files created in Zoho Writer, Zoho Sheets, and Zoho Show.

Zoho is making the productivity experience much easier for users since they can now use an online one-stop storage space for all of their files. Users will be able to edit, collaborate, share all of their files through Zoho Docs. Zoho is definitely giving Google a run for it’s money in Saas productivity apps.

Why does Zoho Compete with Google?

The question of why and how Zoho competes with Google has been asked many times across this industry. Zoho CEO Sridhar Vembu details why Zoho competes with Google in his latest post at the Zoho Blog.

Sridhar includes an excel sheet in his post that lists revenue per employee and profit per employee between companies like Microsoft, Oracle, SAP, Adobe, Google, Yahoo, and eBay to name a few. What this sheet helps show is that all companies fall short of Google’s revenue/profit per employee metrics. Sridhar believes that even though Google has a huge market in the technologies sector, there’s no rational business incentive for Google to actively pursue the business/IT software category. Zoho already has an array of software applications like Zoho Writer, Zoho Sheet, Zoho CRM , Zoho People , and Zoho Mail just to name a few, it will be interesting to see what steps Google might take in the future to involve itself more heavily in the business software market.

What’s your take on it?

Online Collaboration: Make Way for Microsoft

Google and Zoho watch out, Microsoft is taking aim at the same market these SAAS vendors have been eyeing. This article on eWeek highlights that Microsoft is launching several online services that will include collaboration tools and enterprise applications. Microsoft will release the following products as online subscription services: Microsoft Exchange Online, Microsoft Office SharePoint Online, Microsoft Office Communications Online, Microsoft Office Live Meeting, and Microsoft Dynamics CRM Online.

Microsoft still seems to be light-years away in terms of online collaboration. Companies like Salesforce.com and Netsuite have integrated many enterprise applications that were designed for the Web, whereas Microsoft is new to the game. Should companies fear the arrival of Microsoft in this space?