Updated Google Apps Pose Threat to Microsoft Office

Google Inc. last week unveiled an upgraded version of Google Apps, a hosted suite of business applications that some analysts said could soon become a serious competitor to Microsoft Office.

Priced at $50 per user per year, the new Google Apps Premier Edition is the third and most sophisticated version of the suite, which was first launched in August with two free editions.

The latest version offers guaranteed uptime, IT management tools, technical support, increased e-mail storage and integration with the Google Docs & Spreadsheets word processing and spreadsheet application, the company said.

Corporate users had mixed reactions to the offering.

“I played with Google Spreadsheets once not long ago,” said Jim Prevo, CIO at Waterbury, Vt.-based Green Mountain Coffee Roasters Inc. “This may have promise down the road, but I’m not excited about it in any way at this time.”

Corporate desktops serve many purposes, said Prevo, adding that he doesn’t think they will be quickly displaced by Web-based office applications.