Google Shells Out $625 Million in Acquisition of Postini

SAN FRANCISCO - Google Inc. strengthens its safekeeping services for its clients as it purchases Postini Inc., an e-mail security specialist for $625 million. This is to reassure Google's big business customers with reliance on its software applications.

As Google reinforces as a strong alternative over Microsoft's dominating services, it offers users low cost and even free software applications that can be obtained online thus threatening Microsoft Inc.

With Postini, Google hopes to increase its average daily sign-ups of 1,000 from small businesses. Dave Girourard, who is the executive in charge of the Google's thrust into the corporate market, says that security matters have kept them from that sought after increase. The e-mail security specialist protects e-mail and instant messaging on the Web for almost 35,000 customers serving over 10 million users. Postini was created in 1999 and some of its customers at present are Dillard's Inc., Circuit City Stores Inc. and Sempra Energy and Pulte Homes Inc.

The partnership between Google and Postini began in April that eventually led to negotiations, which then resulted to the deal. Girouard finds a potential market in Postini with only a few of its customers included in Google's 100,000 clients. He adds that they look forward in enticing Postini users to try their own applications.

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