Google pokes the Freeconomic Cloudophiles

Just in case there was any lingering doubt that running a business off free cloud services today is a cr*p idea, Google rammed the message home - TechCrunch:

Google says the vast majority of the 1 million businesses that use Google Apps opt for the free advertising supported version. To make the free option less attractive they’ve been quietly lowering the number of user accounts that can be associated with a free account. Now as businesses grow, they’ll be forced to move to the paid version much more quickly than before.

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When Google Apps first launched in August 2006 it was free and described as “a service available at no cost to organizations of all shapes and sizes.”

Free for everyone lasted until February 2007, when Google announced a premier edition of the service with more storage and an uptime guarantee. The cost was (and is) $50 per user per year.

When Google Apps first launched up to 200 user accounts could be created for each business under the free version. But that limit was quietly reduced to just 100 user accounts. And then when the reseller program was announced earlier this month, the limit was cut in half again, to just 50 accounts.

Things, as they say, can only get better - not. The price of losing control is eternal vigilance. The good news is for competitors, as commentor Ian Hendry pointed out:

Business application ISPs worldwide will be breathing a sigh of relief. This sets a precendent for paying for business apps even if delivered online as SaaS.

I share the view that ads while trying to get business done using apps that just happen to be delivered online are a nuisance. People will pay if the apps are important — Salesforce.com has proven that. If anything, I expect Google Apps to appear more credible because they DO have a fee paying model.

Another freeconomic bubblet bursts......