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Google Releases Zoho Mail with Offline Support

Posted on October 10, 2008 ·

Yes, you read it right: the first announcement of Zoho Mail’s general availability, with Google Gears-based offline support did not come from Zoho, but from the Google Gears team, which released this video discussing Zoho’a use of Google Gears, synchronization, the Marketplace and  a lot more a bit prematurely:

Somewhat used to it (see TechCrunch Releases New Zoho Service: Invoice) the Zoho folks decided to play along and released their own announcement.

This announcement somewhat symbolizes the interesting dynamics between Zoho and Google: competitors, yet collaborators.   ReadWriteWeb is probably right:

But also Google probably sees Zoho less as a competitor at this point (even though Zoho does compete directly against Google Apps) and more as an evangelist for its technology – such as Google Gears.

First of all what’s in today’s announcement:

  • Zoho Mail has been in private beta for over a year now. As much as we like to switch to native collaboration using web-based tools, email is still where most productivity workers spend 80+% of their time.  Mail is the glue that brings it all together – so it’s important for Zoho to step out of background testing mode and make Mail publicly available. It’s also an integral part of the Zoho Business Suite.
  • Features: It’s an email service (everyone gets a user@zoho.com email account) and an email program that can consolidate several other email accounts, Outlook-style.  It combines old and new: supports hierarchical folders a’la Outlook as well as Gmail-style labels, chronological view as well as the threaded conversation views made popular by Gmail.
  • Access anywhere, any time: Offline access is provided via Google Gears (for now Firefox and IE only), and it’s also available on the iPhone.
  • Integrated Chat – this is another “glue” application within the Zoho Suite, and several other features listed here.

So with all that, why am I unhappy?  I’m a die-hard Gmail fan, mostly for its productivity boosting features:

  • Conversation threads
  • Labels
  • Search

Zoho Mail handles the latter two well, but I am not too happy with the way conversation threading works.  My business conversations last weeks, include dozens of emails, and on a traditional mail system the threads are basically a pain to put together before responding to someone.  Gmail handles it automagically, and as a side-effect, it presents a lot more information on it’s list screen – since the dozen individual emails are now compressed into one line.

But we all have different usage patterns. When debating the importance of threads, I looked at other Zoho Mail users whose conversations are typically one-off, so they won’t value threading feature at all.  In fact not everyone needs productivity.  Not everyone wants to go through a paradigm change.

AOL, YAHOO, Hotmail are the absolute web-mail market leaders,and they should do whatever it takes to keep their customers.  Their mainstream users are corporate employees who use Outlook in the Office, whether they like it or not is irrelevant, they are used to it. When they go home, they may not email a lot. Some will check their emails daily, once a week, or less. They want a personal email that resembles to what they already know.  For them familiarity is more important than productivity.

As much as I hate to admit it,  I am NOT the mainstream Zoho customer.  I am probably more a part of the TechCrunch 53,651 (even though it’s 1M now) than the mainstream customer base Zoho targets.   And if it wasn’t clear before, the current crisis brought home the message loud and clear: only businesses with real revenues survive.  Which probably means that for all my yelling and screaming, Zoho is quite right coming out with an email system that meets the needs of businesses who actually pay for it.  After all, this is what enables them to offer all the other apps I like for free.  And I like free. smile_wink

(Disclosure: I’ve been a long-time Advisor to Zoho and they are exclusive sponsor of my main gig, CloudAve. This article has been cross-posted there.)

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Zoho Launches Application Marketplace

Posted on September 30, 2008 ·

Having seen the power of Zoho Creator & DB I predicted Zoho would create a Marketplace eventually. Ten days ago Information week leaked the news, we wouldn’t have to wait long – and now it’s here: the Zoho Application Marketplace.

Ever since the famous Google Chrome Comic book, the gold standard for product announcement is just that: comics. Ladies and Gentlemen, enjoy the following comic video announcement:

There’s a catalogue of business applications, but if you don’t find an app you need, spec it out, and receive offers from developers. Either way the apps are owned by the developers who set their own pricing and keep 100% of the revenue.

If they don’t take a commission, then what’s in it for Zoho? Clearly, having more situated software apps will drive up subscription demand. Zoho Creator (the platform Marketplace is built on) is free up to 10 applications, and there are several price levels above that.

On day one the ‘shelves’ no doubt will not be fully stocked but Zoho hopes developers will quickly jump on the opportunity. After all there are over 100K apps used by the Creator community. Clearly not all marketable, but even less than 1% can create a lively market.

Marketplace comes on the heels of a new release, Zoho Creator 3 (see video)

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Google Gears-powered Offline Mail, Application Marketplace by Zoho

Posted on September 19, 2008 ·

Planned release?  Leak?  it doesn’t matter anymore, InformationWeek has just pre-announced two planned major Zoho upgrades:

Zoho Creator 3 will come with an apps marketplace, something I asked for a while ago. The App Store will allow developers set their own prices and keep 100% of the revenue.  It will also become a code-to-order marketplace: if you don’t find an app you need, spec it out, and receive offers from developers.

Now for the fun part: since the Chrome Comic Book, what better way to introduce a major new offering then by a comic video?

(Update:  Since the news was indeed unintentionally leaked, not released, I took off the embedded video.  The 356 of you who saw it: consider it a preview.  An updated version will be back @ Launch)

The other major announcement is making Zoho’s Web-based Mail service available off-line, based on Google Gears.  This will no doubt give Zoho Mail a competitive edge for a while.

It’s somewhat ironic that Zoho is always first to implement Google Gears (is Zoho doing Google’s testing?)  but if the past is any indication, Google’s own Gmail should follow suit soon.

Both upgrades are expected to go live in the coming weeks.

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3-year Old Millionaires

Posted on September 17, 2008 ·

No, not talking about babies here, but two Tech icons who both reached the Million milestone around their third birthday.

TechCrunch, launched 3-year ago as Mike Arrington’s hobby blog had 1 million Feedburner subscribers for the first time last week.  Of course it’s no longer a hobby blog, but a blog network run by a professional CEO, supported by a growing blogger team.  Mike himself has become a Silicon Valley institution, his Atherton home Web 2.0 Central.

Congratulations, Mike!   And Congrat’s to the other 3-year old millioinaire:  Zoho.

When Zoho Writer launched three years ago it was the underdog compared to Writely (which later became Google Docs). But it improved week by week, was soon joined by Zoho Sheet, and one had to be blind not to see the benefits of a complete Suite on the Net.  Today Zoho has a million users, is recognized as a leader along with Google, has made inroads to the Enterprise (400K users at GE?  Not bad…), The Economist calls them the force that will Deflate IT… a lot of achievements in three years.

Once again, congratulations to both… and now the race is on: who will reach the 2 Million mark first? smile_wink

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SaaS and the Commoditization of the Software Market

Posted on September 14, 2008 ·

Office 2007 Reaches a New Low – reports Joe Wilcox @eWeek.  He means low prices:  while Office Standard is still above $300, the Home and Student Edition can be purchased for as little as $89.99.

He then speculates on the reasons for this “Crazy Eddie”  pricing, with percentage of likelihood:

  • “It’s end of the back-to-school buying season, when Microsoft and retailers often discount consumer Office (50 percent).
  • Microsoft is seeding the consumer market with the Home and Student Trojan horse for supporting Web services such as Office Live Workspace (25 percent).
  • The low pricing is way of psychologically preparing the consumer market for $69.95 Office Equipt, which packs 12-month subscription versions of Office 2007 Home and Student Edition, Windows Live OneCare, Mail, Messenger and Photo Gallery. (20 percent).
  • Microsoft is shoring up marketshare as proactive response to freebees like Google Docs. (5 percent).”

I strongly believe in the last one, which is way underrated at 5%.  With freely available OpenOffice, Google Docs and the Zoho Suite, people have little reason left to purchasing Microsoft Office.  I’ve said this before, while discussing the perfectly rightful clampdown on piracy:

The danger for Microsoft is not the direct financial impact of these users turning away from their product, since the never paid in the first place. It’s losing their grip; the behavioral, cultural change, the very fact that millions of people – students, freelancers, moonlighters, small business workers,  unemployed – realize that they no longer need a Microsoft product to work with MS file formats.  Microsoft shows these non-customer users the door, and they won’t come back – not even tomorrow when they are IT consultants, corporate managers, executives.  That’s Microsoft’s real loss.

But this post is about commoditization, and there’s more to it than putting price-pressure on Microsoft. Yes, SaaS disrupts the traditional software market, but there’s another equally important trend happening: some of the early pioneers who evangelized SaaS but retained a 1.0 business model are being squeezed by more nimble competitors. 

Days after my post on SaaS and the Shifting Software Business Model I received an email from Salesforce.com, announcing new, promotional pricing for Salesforce Group Edition.  The promo was supposed to end July 31st, but I suspected this would become a permanent price cut.  Why?  Group Edition is where Salesforce.com feels intense price pressure – see the comparative matrix here.  Today I checked again, and what a surprise (not really) –  the promo deadline is now gone, Salesforce.com silently turned the promotion into a permanent price-cut. 

No wonder there wasn’t much fanfare: price cuts are a red flag for the Street.  Commoditization can be a death-spiral to businesses – except for the few that drive it. But it is beneficial to customers, and in the end, that’s what matters.

(Disclaimer: I am an advisor to Zoho, the company with a mission of Deflating IT).

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Let’s Meet on CloudAve, the New Cloud Computing / Business Blog

Posted on September 10, 2008 ·

My regular readers no doubt noticed that I’ve been blogging less recently. I’m not about to give up ( although that’s a fashionable trend nowadays), in fact I’ve increasingly felt dissatisfied not being able to talk about everything I wanted here… be it industry trends, opinion pieces or product reviews.

I enjoy writing longer, thoughtful pieces, but often don’t have the time, and the quickie “fillers” I do in the meantime tend to become more popular then the deep, analytical ones.  Fellow blogger Louis Gray contemplates the same this morning. I’ve especially hit the wall with reviews: after a few popular ones I got inundated with requests to review this and that…but I don’t reprint vendor PR, and simply don’t have the bandwidth to do them justice, spending days on research before writing them up.  (Need to focus on activities that… well, pay the bills).

“Oh, no, he’s gone crazy… starting another pro Blog network, when pageviews and ad revenues are drying up for all but the few best…”

Don’t worry, I am not about to launch another TechCrunch- ReadWriteWeb- Mashable- wannabe blog.  But I am launching a new blog, Cloud Avenue where, working with a few like-minded bloggers we’ll focus on the intersection of Cloud Computing, especially SaaS and Business, ranging from small business to enterprise.

Our blogging team is as diverse as it gets: fellow Editor Ben Kepes is from New Zealand, Krish is in the Seattle area, other contributors are from the US, Europe, Australia and India. (Long nights and extensive use of Web collaboration tools are in store for us – eating our own dog food.)  Our writing styles are equally diverse, so we’ll have a mix of “quickies” and longer analysis, and as for reviews, we’ll have our own CloudLab that will from time to time venture into a series of comparative reviews.

Now, what about that craziness factor?  Well, we have a No Ads sign at CloudAve, and we mean it: none of those flashy boxes, banners that make content hard to find…   but how do we survive?  An old friend comes to help.  I’ve been a long-time Advisor to Zoho, and increasingly a fan – not simply for the services they offer, but the longer term impact and their business philosophy.  I better let The Economist explain.

Zoho stepped up as exclusive Sponsor of CloudAve, allowing us to focus on content, without Creative Commons Licenseworrying about revenue generation.  In fact since we’re not dependent on page-views, we can afford to give our content away: everything on CloudAve will be available under a Creative Commons licence.

The sponsorship does not turn CloudAve into a Zoho PR outlet – we retain full editorial independence.  Then what’s in it for Zoho?  In CEO Sridhar Vembu’s words:

First, CloudAve’s mission jives with our own, which is to advance cloud applications. Second, the community tools we provide are the same ones that Zoho customers need for their own businesses. So we get to sharpen our own applications by providing them to CloudAve.

Of course the the proof of the pudding is in the eating, so I’m offering you the first bite: sign up for our feed here, and you’ll catch that first bite before we launch next Monday.smile_wink

See you in the Clouds!

Update (9/15). CloudAve launched.

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Benchmarking the Benchmarkers

Posted on August 22, 2008 ·

I’ve repeatedly praised Web-based Invoicing service FreshBooks for being innovators, unveiling the hidden business model enabled by SaaS: benchmarking.   But who’s benchmarking the benchmarkers?

Competitor Xero has just issued a call looking for benchmarking partners comparing metrics like:

  • Customer acquisition rates
  • Teaming model and allocation of spend
  • Sales and marketing spend
  • Sales quotas
  • Google spend
  • Pipeline conversion

CEO Rod Drury is looking for 5-10 partners, communicating either directly, or through a trusted third party.  Either way, its quite a challenge, as unlike the aggregate anonymous data Freshbooks provides to their customers, this level of sharing requires quite a level of trust.

Interestingly I contemplated similar ideas just a few days ago when Zoho CEO Sridhar Vembu published his margin analysis of Google, SAP, Oracle, Microsoft and a few others.  He drew a conclusion that since Google’s current revenue and profit per employee metrics were much higher than even the best players in the application space, Google has little incentive to move into this space forcefully. (He then followed up with a What’s in it for Zoho? post)

Specific conclusions aside, I thought it would really be interesting to expand this spreadsheet buy including Zoho and comparable companies as well as additional metrics.  Needless to say I ran into a similar dilemma that Xero is facing now: these are private companies that don’t typically publish their financial results, to get them participate we would need a relatively larger sample and it would still require a leap of faith.

Rest assured I’ll be watching Xero’s experiment with great interest.

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Macros For Dummies

Posted on August 13, 2008 ·

I’ve never made a secret of the fact that my spreadsheet skills are somewhere at the level of what I learned using Lotus 1-2-3🙂  so the recent addition of Macros and Pivot tables to Zoho Sheet was really not my piece of cake.  Not that I would not recognize the techological feat when both Google and Editgrid said they couldn’t / wouldn’t do it…

Now I have to admit I occasionally tinkered around with Excel macros: not that I know Visual Basic, all I ever did was record the sequence I needed, then tinker with the resulting VB code.  That’s the capability Zoho just announced today: with a few clicks record, edit, re-run your macros, in the original Zoho Sheet or in any others you have access to.  Finally, Macros For Dummies like me 🙂 Here’s a summary video:

To the best of my knowledge no other spreadsheet can do it (other than GrandDaddy Excel)

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What Are a Million Users Worth? Zoho Thinks a Lot.

Posted on August 6, 2008 ·

The first time I wrote about Zoho – the “Safer Office” they had less than 50 thousand users – not a lot for a web service. Today they announced having a million users – and that’s just direct Zoho users, not including those served by Baihui in China, or any other white label providers.  Back then they had 3 products: Writer, Sheet and CRM – today the list includes 17 Applications, 5 Add-ons and 4 Utilities.

The chart below shows steady growth in monthly new registrations – the sudden spike in May is the effect of opening Zoho Apps to users with Google and Yahoo accounts.

Now, you may ask, what are a million users worth in the world of freebies?   Web startups do go out of business not being able to monetize their popularity.  Zoho’s story has been that Adventnet, the parent company with “boring” but reliable, cash-cow network management products is financing the “Zoho experience”.  Well, here’s an update to that story: the Zoho brand itself has been self-sustaining for a while now.

While Zoho does not disclose numbers – it’s their prerogative, being a closely held private company – they apparently have paying users.  The number one revenue generator is Zoho CRM, that they were asked to abandon in order to be allowed to join Salesforce.com’s  Appexchange.  Apparently they made the right decision, and instead of being relegated to providing an Office Suite only, they keep on adding business applications like Projects, Invoice, People, Meeting..etc.  Incidentally, these apps are where Zoho makes their money.

The free Office and other apps with the million-or-so users are Zoho’s main marketing vehicle.  As we often discussed here, they don’t have a Sales force, in fact they don’t “sell” as such: the products sell themselves.  This trend will likely increase as Zoho now increasingly focuses on integrating existing services rather then just pumping out new ones.

That is not to say that the Office Suite can’t became a source of significant revenue, but perhaps from a less expected source: while Zoho strives to become the outsourced IT department for small businesses (SMB) they have seen a flurry of large enterprise inquiries recently.  I am aware of ongoing projects with customers that even enterprise software giants SAP or Oracle would consider strategic, key accounts – let alone Microsoft. smile_wink

As for the one millionth user: Zoho CRM user Dean Detton of Prestige Automation Inc has been invited to celebrate at the Zoho Party during the Office 2.0 Conference on September 4th.

The address for the party is: 1 Cloud Avenue.  See you there! martini

(Disclaimer: I am an Advisor to Zoho)

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Life After Outlook: Gmail. But is it Becoming Oopsmail?

Posted on August 1, 2008 ·

Bernard’s title @ ReadWriteWeb, Breaking Free of Outlook perfectly matches my own sentiment: in fact I called the MS Client Outlook-prison repeatedly.

Unlike Bernard, I escaped from prison in stages:

I’ve never looked back, and am definitely more productive than in my desktop-bound life.  I could see first-hand a lot of people move in the same direction: my How to Import All Your Archive Email Into Gmail guide become an all-time classic, probably approaching 100,000 hits by now.  Gmail’s IMAP support changed everything, so I issued a  Simplified Guide to Importing All Your Archive Email Into Gmail.  A while later Google woke up, and started to offer a migration tool to subscribers of the paid Google Apps version. (Oh, and they are being sued by LimitNone, who claims Google basically stole their gMove product).

But the love-affair with Gmail was not without trouble: I first documented some glitches last spring: Gmail, I Love You – Don’t Let Me Down, then real trouble started a month ort so ago.

Formerly rock-solid Gmail has been ill a lot lately.  The “Oops…the system encountered a problem (#500) – Retrying in 1:30” error message has became a daily occurance… in fact several times a day.

I somewhat jokingly called “retry now” Gmail’s Penalty Button, when I noticed every time I hit it the wait counter increased by a minute.

Now I have an update: you don’t need the penalty button, the counter increases by itself.  Every time, “reliably”. Basically as soon as you see the Oops error, you might as well close the browser tab (or browser itself), as it won’t recover on its own.  This annoying  error has become the most frequent “feature” of Gmail, to the extent that it really undermines productivity.

I hope Google will fix it.  They MUST.  It’s the crown jewel of Google Apps. In fact without Gmail and Calendar there wouldn’t be Google Apps at all.

Update:  Oops: apparently there’s a real service by the name of Oopsmail.  Obviously I am not referrring to them in the title. (Although… ? 🙂 )

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