Alphabet
’s
GOOGL
division Google renamed its G Suite – a package of online business tools namely Gmail, Drive, Docs and Meet — as Google Workspace.
Further, the company added latest features that facilitate integration with different services.
Google launched a feature, which enables video chatting with colleagues and displays it in a small box at the corner of a document-editing window. Further, it integrated Meet, Chat and Rooms across its applications with Gmail.
Notably, customers,who utilize Gmail, Google Docs and the other tools free of cost, will get access to these new features in the coming months.
The latest move of enhancing business tools will strengthen Google’s key offerings to individual as well as enterprise customers.
This, in turn, is expected to bolster the adoption rate of Google Workspace in the near term, which will likely drive the company’s top-line growth.
Google to Gain Momentum
Strengthening business tool offering holds promise for Google in this coronavirus outbreak-hit world.
An uptick in the demand for Internet-based services and products as a result of the current work-from-home trend remains noteworthy. Moreover, the practice of social distancing in a bid to contain the virus has bolstered the usage of online business services globally.
We believe that Google is well-poised to capitalize on the growing proliferation of video conferencing tools, cloud computing services, infrastructure monitoring applications and employee collaboration tools among others on the back of its robust package of business tools.
This, in turn, will strengthen the company’s footprint in the online business tool space.
Currently, Google has 2.6 billion accounts, which include both paid and unpaid. Further, its business customer base for underlined tools stands at 6 billion.
Competitive Scenario
Given the upbeat scenario, owing to the coronavirus pandemic, not only Google but also its strong contender Microsoft
MSFT
is leaving no stone unturned to capitalize on the rapidly increasing demand for business tools, thus, intensifying the competition.
Notably, Microsoft recently revamped its Office 365 software suite to Microsoft 365, with the addition of the latest features and capabilities, which include the launch of Microsoft Teams for everyday customers, and improved AI capabilities in Microsoft Editor for Word and Outlook.
Further, the company upgraded PowerPoint with voice recognition and Edge browser with better security.
Apart from Microsoft, Apple
AAPL
with iWork and Dropbox
DBX
with Dropbox Business are there in the fray.
Moreover, companies like Zoom Communications and Cisco are gaining strong momentum among business customers on the back of their well-performing video conferencing tools —Zoom Video and Webex, respectively.
Nevertheless, solid momentum across Drive, Gmail, Meet and Docs is likely to continue strengthening Google’s competitive position against the above-mentioned companies.
Currently, Google’s parent Alphabet carries a Zacks Rank #2 (Buy) at present. You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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