Google’s popular office software, Google Workspace, now boasts over 9 million subscribed organizations, the tech giant recently informed Insider. This represents impressive growth from 3 billion users in October 2021, and it comes off the back of aggressive expansion strategies under the guidance of Google Cloud CEO Thomas Kurian.
Google Workspace, formerly G Suite, is a suite of productivity tools, including Google Docs, Gmail, Google Meet, Google Slides, and more. Major organizations worldwide are now using Google Workspace, including recognizable names such as Korean Air, Wayfair, Airbus, and the US Army.
Google’s most recent innovation is integrating artificial intelligence (AI) features throughout Google Workspace. Users can now create documents or emails simply by entering basic commands. For instance, Google Docs can generate “a job post for a sales rep” on demand. Plans include using AI to generate backgrounds in Google Meet and create images, audio, and video in Google Slides.
Despite the software’s success, Google Workspace faces stiff competition, particularly from Microsoft Office and its Office 365 product. With 345 million paid commercial seats as of last year, Microsoft Office is popular among large enterprise customers. Indeed, insiders admit that Google Workspace struggles to win over businesses already loyal to Microsoft.
However, Google’s latest AI advancements and cloud-first approach could help it get a leg up in this competitive market. Interestingly, Microsoft plans to integrate the popular chatbot, ChatGPT, created by OpenAI, into its Office products.
As part of Google Cloud, Google Workspace has contributed over $7 billion in revenue in the last quarter of 2022. Despite this, the unit remains unprofitable, though losses have been reduced from $890 million last year to $480 million. Optimistically, Google Workspace’s subscription model could represent an opportunity to close the gap in profitability.
