Google Goes Corporate - Bits - Technology - New York Times Blog

It'll be interesting to see if Postini takes a momentum hit because of its new parent 

So Google’s entry into the corporate software business promises to exponentially disrupt an industry that was already in turmoil, because of the prospect of a shift from selling software to software as a service. Now Google may well offer software free or at very low cost because it can insert advertising. Even if some companies would pay to offer their employees ad-free tools, Google’s global network of services may be able to help it underbid smaller rivals.

As an aside, if Google does succeed in convincing companies to accept advertising on their internal systems, it may become the replacement for trade journalism. Instead of advertising your widget maker in Widgets Today, you could simply buy an ad on Google that will appear every time someone reads an e-mail or writes a presentation about making widgets.

Google Goes Corporate - Bits - Technology - New York Times Blog