5 Reasons That Google ChromeOS Should Focus on SMB, not the Enterprise (at first)

As always, Sameer Patel has a great post on Enterprise 2.0 and the impact that Google's announced, but still vaporous, operating system.  He even paints a fantastic picture of what having Google Chrome OS would / could look like in the enterprise:
Google packages up a Netbook  with ChromeOS, Google Apps, Umbrella Analytics, Google Gears and and Wave-enabled Enterprise 2.0 capabilities. The full enchilada along with a developer platform to enable customization for specific use cases in the enterprise. Now that’s a software distribution model that in theory can give SharePoint bundled with Exchange, a serious run for its money. And that also speeds up commoditization of Enterprise 2.0 solutions.
Which would be awesome! But again, Google is talking about 2010.  We know that Google apps stay in beta for about a millennium, so assume that Chrome OS is actually ready for prime-time in mid-2011. Sprinkle some Google Wave on that, which also won't be ready until 2010ish, and all of a sudden we are talking about stuff that is 2 years out.  Cool stuff, but so are flying cars.  No enterprise is investing in Google Chrome OS or Wave until late 2011. Flip the equation on it's head though and rather than focus on enterprises, focus on absolutely owning SMB.  If you have less than 50 employees, Chrome OS, with the apps package that Sameer laid out, is a no-brainer.
  1. With self-service, SMB is a much easier market to penetrate. Small businesses don't have large IT departments if they have any IT department at all. Really small businesses are just a few folks trying to deliver a service that they are good at and don't want to have to deal with hiring some guy at $100 an hour to ensure that the drivers on their XP system work with the new color printer that they just got.  Small businesses don't care if a service is in the endless Google beta cycle.  They want to know if it works? Is it always available? Is it relatively secure? Can I afford it?
  2. Google Checkout and Payment Systems are already there. Google has the payment system figured out. Buying this stuff will be insanely easy.  While at the same time being able to provide Checkout to a wide number of small businesses to help modify their payment system out of the box. This could be a huge thorn in the side of PayPal.
  3. Open Source will create an abundance of apps. While it will take forever for the enterprise to bring ChromeOS on board, because it is open source, there will be a ton of applications for SMB right out the gate. Think about Google Forms, Google SFM, Google Finance, Google Tax, the list goes on and on.  Companies like DreamFactory will make a bunch of easily ported applications and development tools.  Think of iPhone apps, but with more power.  Go into the Chrome Store (like Force.com), find your apps, order them and pay via Google Checkout and they are already running.  Again, keep it simple for the small business owner.
  4. SMB doesn't care about beta - I mentioned it above, but most people recognize that Google beta and other beta aren't the same thing.  SMB owners want their machines to boot up, they want to be able to access their apps, they want their data to be there.  If GMail's beta period is any indication to the performance of ChromeOS in beta, there won't be any issues at all.
  5. Google can connect SMB's together via Wave or Orkut. It's been amazing that MSFT hasn't figured it out yet.  If you own the OS, you should own the social network.  Xobni recognizes that the best social network is in your inbox, but imagine being able to easily connect to other like businesses.  How powerful would it be if auto body repair shops were able to connect to other auto body repair shops to share ideas, trade parts, develop joint marketing plans or make referrals?
It's a long way out, but it was a big announcement this morning.  I don't know if it was a nuclear bomb, as TechCrunch called it, is quite right, but it certainly was big and will be a thorn in Redmond's side for the next 18 months.

Comments (4)

Jul 09, 2009
Sameer said...
Very insightful take. I'm knee deep in SMB market entry work right now and I can totally see this working.

Man, too many smart people under that SocialText roof over there in Palo Alto (and Philly.)

-)
Jul 09, 2009
Scott Schnaars said...
Thanks, Sameer. Do you know the guys over at DreamFactory? They stand to
really thrive in the Chrome Economy. LMK and I can make intros if you'd
like.
Jan 04, 2010
corporate video said...
i suppose now gmail will be coming out of beta
Jan 04, 2010
corporate video said...
i suppose now gmail will be coming out of beta

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