A reported deal has been reached between Google (NASDAQ:GOOG) and General Motors (NYSE:GM) involving their IT infrastructure, particularly GM’s e-mail system. GM has agreed to receive e-mail for 100K employees through the Google (NASDAQ:GOOG) Apps Platform. They would be moving away from IBM’s software, Lotus Notes, that is currently used to power their e-mail system. Lotus Notes is an on-premise e-mail service offered by IBM (NYSE:IBM). Google Apps will be tightly integrated with Google+ and Google+ Pages, making it more enticing for business to adopt this e-mail service.
Investing Insights: Starbucks: Watch out Jamba Juice.
The Google Apps Platform is a new, secure technology that uses the cloud computing technology. This means that E-mails will be powered through a virtual portal, instead of physical servers. This represents an overall shift from non-differentiated IT operations to cloud computing. The US government has also expressed interest in moving to cloud computing. Steven VanRoekel, the White House’s top techie, says, “The government really needs to switch to lean startup mode.” Cloud computing seems to be the way of the future and this is major victory for the Google Apps Platform.
Google’s (NASDAQ:GOOG) stock price is up 1.98 % today, while GM (NYSE:GM) is up 0.22%. Google (NASDAQ:GOOG) is continuing to buy start up companies to help enhance Google + as well as signing new contracts with companies like GM to enhance its stake in the business IT infrastructure sector. IBM (NYSE:IBM) is also trading up 2.33%, although it appears that its physical e-mail system, Lotus Notes, will be facing an uphill battle fighting against the Cloud as security for the Cloud rapidly continues to evolve.
Don’t Miss: Is Apple a Sinking Island?