PostiniGoogle had Google Apps (among other things) in mind when they went after Postini to acquire them. The acquisition for Postini, a communications security and compliance company was announced today for $625 million.

The announcement mentioned that more than 1,000 small businesses sign up for Google apps daily, (wow!) but that larger businesses and enterprises are often times hesitant or unable to sign-up for the service because they have security needs that need to be met. The Google Blog says that they’re required to support “complex business rules, information security mandates, and an array of legal and corporate compliance issues” which Postini will be able to help them with.

Postini over the years has gone from “small and obscure” to a “significant company with international operations and multiple data centers supporting over ten million users across 35,000 businesses” according to Ryan Mcintyre, a Postini investor. Their services will protect email, instant messaging, and other web-based communications.

I think Google has some big plans in mind for Google Apps, and because they were already licensing technology from Postini for Gmail, this purchase makes complete sense. They’re already well-known in the Corporate World as offering great anti-virus and anti-spam solutions, blocking over a billion spam messages every day, and they were just headed for an IPO.

Another smart purchase from Google, and congratulations to Postini!

Thanks for the tip Cory!

  1. I also hear a Google docs redesign is in the works! Looks like Microsoft better watch out! :twisted:

  2. You’re absolutely right, Phillip. In fact, the redesign was [tech.cybernetnews.com] Google Docs & Spreadsheets looks much better now, if you ask me!

  3. I think postini forced Google’s hand into buying them. Since they hold several patents that are used in Google Docs and Spreadsheets it would have been a huge setback for Google if Microsoft, Yahoo, or ZOHO had purchased them.

  4. Looks like a no-brainer really considering their affiliation already with Postini. I have used Google docs little but will keep a closer eye now. I do appreciate GMails virus and spam detection. Beats other web-based email apps (are you listening Yahoo?).

  5. CoryC wrote:
    I think postini forced Google’s hand into buying them. Since they hold several patents that are used in Google Docs and Spreadsheets it would have been a huge setback for Google if Microsoft, Yahoo, or ZOHO had purchased them.

    That’s a good point Cory, and I bet you are right. Google would have had a lot of rethinking to do if someone else had purchased Postini before they did. I wonder if there were any other companies that were using the Postini technology though, and are therefore in a similar situation.

  6. Ryan wrote:
    CoryC wrote:
    I think postini forced Google’s hand into buying them. Since they hold several patents that are used in Google Docs and Spreadsheets it would have been a huge setback for Google if Microsoft, Yahoo, or ZOHO had purchased them.

    That’s a good point Cory, and I bet you are right. Google would have had a lot of rethinking to do if someone else had purchased Postini before they did. I wonder if there were any other companies that were using the Postini technology though, and are therefore in a similar situation.

    Looking at [postini.com] it looks like there are couple of big name security companies including McAfee, Trend Micro, and Symantec. I wouldn’t think they would be concerned though.