What to Make of Google's Acquisition of Postini?
Google's decision to acquire Postini for $625 million makes sense for both companies: Google benefits by acquiring robust technology to protect its messaging and Apps infrastructure, and Postini benefits by expanding its reach to a potentially much broader audience.
That said, how will Postini's customer base view the acquisition? One of Postini's strengths has been that it processes messages in memory and doesn't maintain a copy unless the customer turns spooling capabilities on, which was a key reason that Postini did so well early on in the legal vertical. An individual with whom I spoke this morning suggested that the Google acquisition might be perceived as changing the level of security and privacy that Postini customers have enjoyed given that Google is perceived, perhaps wrongly, of mining data quite aggressively.

2 Comments:
Mike, I really have a hard time with the frame that, "Google is buying Postini because of its spam filtering technology."
What Google needs is a way to round out its Google Apps. story. It doesn't have home-grown solutions for its customers' policy, compliance, and archiving/e-discovery needs.
Google was already partnering with Postini to provide this for Google Apps. customers. Presumably the experience was a positive one and Google simply wanted to own the technology and people.
More at richij.com
July 9, 2007 3:59 PM
I agree with you, Richi. I believe that the acquisition of Postini is much more strategic than just acquiring good anti-spam technology.
On one level, this can be viewed as a way of bolstering Google Apps. However, while I believe that the acquisition of Postini is designed to improve Apps, its goal is to improve Google's enterprise messaging story with the ultimate goal of helping Apps to penetrate the enterprise more effectively.
July 12, 2007 4:36 PM
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