Google to acquire 37Signals
by Gil Rosen

This is not a real news flash. It just makes sense. Here is why:

Its not long before we see these icons added to the www.google.com/a page

All that remains is to fill in the $__,___,____ for the figure.

On a more serious note. 37signals , the smallest-biggest SME SaaS provider released “Highrise” a new contact, lead management tool (see the most updated review on mashable).

My bet is that Google is already having talks with 37Signals. These companies are so compliant it just makes sense.

In a totally unrelated event (TheMarker’s Internet Convention) - Dr. Yoelle Maarek Director at Google’s R&D Center in Haifa-Israel, said Google does not aspire to compete with Microsoft. After repeating the mantra of “we organize the world’s information and make it universally accessible and useful” she went on to say Google is about moving data to the net (only to organize it and make it more useful, of course). Well, the recent launch of Google Apps its a definite “military march” as far as Microsoft is concerned.

If you run a small business (and this will apply to Fortune500 in 5 years as well) you have got to make a decision - how do you set up your communication infrastructure? how do you manage your enterprise? How do your workers, clients and suppliers collaborate? etc. etc.

Without dwelling into a long “KPMG type” of analysis, Aner’s recent experience of selecting an online provider for his business applications proves the point. The bottom line is that he is very close to running his business “Microsoft free”. True - this is not competition - its more like a brutal hijack!

As if taken out of a sci-fi movie - users are being snatched into a new parallel reality were ‘things’ are managed away from the desktop, where new software is not measured by the length of the feature list, where the interface is simple, prices are fair and the language is friendly.

Google Apps is a step in the right direction but it doesn’t deliver the 1-2-3 punch. And we all know that Google likes to knockout.

The 1G mail was a huge knockout.

Now let’s connect the dots. Out of all the good companies which provide SaaS today, which one, joining forces with Google, could deliver the 1G knockout or more like the 1MT (mega ton) punch? I believe its 37signals.

This is why I believe tomorrow’s headlines will read “Google to acquire 37signals”

Gil Rosen
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