Microsoft's (NASDAQ: MSFT) director of online services, Tom Rizzo has thrown down the gauntlet on businesses seduced by the cheaper prices offered by Google (NASDAQ: GOOG) Apps, by offering his opinion on the subject. In a nutshell, Rizzo claims that Google Apps are not a cost-effective solution in the enterprise, and that companies switching to Google incur a "tax" in the form of hidden costs such as migration fees and recurring costs for add-on software.

In a limited survey of 90 small and medium-sized organizations using Google Apps, Rizzo says that "9 out of 10" companies surveyed are actually using Google Apps in parallel with Office. So what's the reason? These companies have not replaced Office due to various issues such as readiness of users, productivity requirements and the inability to work offline. In addition, most were limited to using Gmail and the calendar.

Rizzo has, in the past, highlighted Microsoft's ability to offer flexibility versus Google's cloud-only solutions, noting that "Regardless of how organizations are thinking about the cloud, Microsoft provides a choice for their productivity needs; on premises, in the cloud or as a hosted solution." In comparison, Google "does not offer any such choice."

Have you tried Google Apps in a business environment? I would love to hear your opinion of it. Is Microsoft right, or is the fuss merely an attempt to spread fear, uncertainty and doubt?

For more on this story:
- check out this article at TechNet Blogs
- check out this article at CNET News

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