Google-Postini deal: More than meets the eye

The e-mail marriage makes sense:Postini adds vertical integration for Google's outsourced Gmail business.

Tech Culture

Google and Postini? Makes sense to me. Postini adds vertical integration for Google's outsourced Gmail business. Large companies won't outsource e-mail without security while mid-market companies want turnkey bundled solutions. Now Google has all of the pieces in hand.

The e-mail marriage is obvious but there's more here than meets the eye. Postini has focused on broadening its offering to secure other forms of communication beyond e-mail. For example, Postini has a great portfolio for compliance including e-mail encryption, archival, and policy-enforced TLS. Not very attractive for consumers doing Google searches, but real credible stuff for enterprise organizations struggling to jump over new regulatory hurdles. It is a lot easier to outsource this stuff.

When I heard about this deal I liked it immediately but the price seemed pretty high to me. For $625 million, Google could have offered a small fortune to every spammer in the world rather than grab Postini's e-mail surveillance, cops, and toolbox. Nevertheless, this is pocket change for Google. Google gets the obvious e-mail security and a whole lot of other high value security and compliance services that move it much closer to the enterprise.

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