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Google acquires Postini for $ 625 million

Postini provides on-demand security services, archiving and security policy services, primarily for email and messaging systems, to a total of 35,000 clients in the corporate world. Google will use technology to increase the security of Google Apps productivity applications.

According to Google, 1,000 new business customers are added to the Google Apps offering every day; But the company indicates that large companies are somewhat reluctant to use such services due to doubts about security issues. Google hopes that the Postini purchase will help clear up these doubts.

Users of Google applications will be able to use Postini services for email scanning and encryption tasks, as well as for archiving messages in compliance with legal matters, as indicated by Dave Girouard, vice president and general manager of the business business of Google.

The economic deal is expected to be closed towards the end of the third quarter. Postini will become a subsidiary company of Google and will continue to support its current customers as well as invest in Postini products.

The acquisition takes Google a step further into the enterprise IT market and increases its rivalry with Microsoft, whose suite of Office applications are found in massive numbers in today’s business environment. Google launched the Premiere Edition of Google Apps last February 2007 at a price of $ 50 per user.