Google to launch business software

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Web-based package aims at Microsoft's, IBM's core business

The Web-based product, called Google Apps Premier Edition, also will include word processing and document sharing, instant messaging, and Internet voice capability. Google will offer it to large companies for $50 per employee, host the applications on its own servers, and provide a service guarantee for its customers.

And large customers would, in effect, turn over management of their applications to Google, which would host them on its own global network of servers. This model of software as a service, rather than a product, was pioneered by Salesforce.com and has gained momentum over the past three years. Through so-called "service-level agreements," Google would guarantee customers that their business software applications would be up and running around the clock.

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