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Indian MSMES Express Concern with Google Workspace’s Revised Pricing

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Last Updated on February 29, 2024 by Kanakkupillai

Several Indian Micro, Small and Medium Enterprises or MSMEs expressed worry about rising expenses following a recent modification to pricing for Google Workspace solutions. In an open letter to Google India’s senior management on August 17, one of the businesses claimed that such pricing practices would add an extra Rs. 2,000 to Rs. 5,000 crores in annual costs for Indian MSMEs for services they would never utilise.

Key Takeaways

  • Indian MSMEs Express Concern with Google Workspace’s Revised Pricing – Several Indian Micro, Small and Medium Enterprises or the MSMEs expressed worry about rising expenses following a recent modification to pricing for Google Workspace solutions.
  • 5,000 crores in annual costs for Indian MSMEs for services they would never utilise.
  • Google understands that small MSMEs can’t have data of 100 TB (50 users with 2 TB each) and won’t be able to use it or avail it.
  • The process of exporting email data from Google Workspace is complicated.
  • Global technology MNCs typically craft a particular strategy for India that includes offering goods at the most affordable prices and services initially either free or at a very minimal charge with several add-on facilities, said Praveen Khandelwal, Secretary General, Confederation of All India Traders or the CAIT.

Sanjay Gupta, the head of Google India, Mayoori Kango, the head of industry—agency partnerships, and Amit Kumar, director of sales for Google Cloud India, were the recipients of the letter from Synersoft Technologies. Additionally, copies of the letter were forwarded to the Indian Competition Commission, MSME, IT and broadcasting, science and technology, industry and commerce, finance and various other recipients.

The CEO of Synersoft Technologies has explained the myth by stating that, in the past, each enterprise user would pay about Rs. 2,500 on a per annum basis for the G-Suite Basic 30 GB storage space plan. If, for example, two senior team members require more storage capacity, only those two individuals may upgrade their plans to receive 100 GB of extra space for a fee of Rs. 1,300 per user per year.

However, they were informed of a new pricing strategy as of June.

Then Google declared that G-Suite would be rebranded as Google Workspace with specified policy adjustments. We’ve been told the extra 100 GB storage is no longer accessible. The “Business Standard” category, which has a minimum storage requirement of 2 TB and costs Rs. 10,000 per user yearly, must be upgraded. They also stated that you must upgrade all of your accounts to 2 TB storage if you require more than 30 GB in a single account, according to Shah.

It was also stated that there is a force to upgrade all 50 accounts (of staff) to a 2 TB storage at a 400% greater cost because I just require 130 GB for a few individuals. From Rs. 1,20,000, there is a yearly outflow of Rs. 5,00,000.

Google understands that small MSMEs can’t have data of 100 TB (50 users with 2 TB each) and won’t be able to use it or avail it. This is what was stated by an MSME registration. Therefore, it does not need to provision 100 TB on its cloud and can still charge for 100 TB, according to Shah.

It was also stated that, in the past, the cost of using Google email accounted for about 7 to 10 per cent of the overall amount spent on digital operations expenses, including Software as Service (SaaS) subscriptions, Internet prices, and other expenses. According to experts, the cost for Google email accounts now only accounts for up to 30% of total digital spending because of the pricing shift and the necessity to upgrade it for all the entity’s employees.

In case someone wishes to download data and move to another provider, Google has also limited the amount of data that can be transferred at once, according to an expert from Synersoft.

The process of exporting email data from Google Workspace is complicated. The majority of MSMEs cannot comprehend them, and their only option is to download all emails sent to the new service provider from Google. Google has a rule that I can’t simultaneously download all of my emails to another service provider if I wish to. Every hour permits a set quantity of emails before waiting for the following cycle. It requires days. And now, emails have stopped.

Global technology MNCs typically craft a particular strategy for India that includes offering goods at the most affordable prices and services initially either free or at a very minimal charge with several add-on facilities, said Praveen Khandelwal, Secretary General, Confederation of All India Traders or the CAIT. Once customers or businesses gain accustomed to their services and raise costs. Initially, these businesses use AI and ML to track the data and purchasing power of every individual or business using their services. Later, however, as users grow accustomed to these services, they start charging exorbitant fees, making it impossible for users to refuse to use them.

Google provides customised services.

Based on certain enquiries, a Google representative clarified that, with each customer’s particular collaboration and security needs in mind, we have been assisting our clients with transitioning to our new editions since we introduced Google Workspace in 2020. When switching to Google Workspace solutions, most of our customers will experience little to no change, and we are assisting all of our customers in making the switch.

The representative also added that from smaller businesses wishing to make quick, self-service purchases to larger enterprises with more sophisticated requirements, Google Workspace offers customised alternatives that align with how clients want to acquire our integrated suite of apps. Additionally, they are heavily investing in Google Workspace’s value for all customers, including those in consumer, enterprise, SMB, non-profit, education, and other sectors.

Conclusion

In India, any business or enterprise that falls under the category of micro, small, or medium-sized enterprises (MSME) can apply for MSME registration. The eligibility criteria for MSME registration are based on the investment in plant and machinery or equipment for manufacturing or service enterprises. MSME registration offers several benefits to businesses, such as easy access to credit, tax exemptions, and government subsidies.

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