Google Piloting Chromebooks Channel Sales
Updated with Corrections: pricing model, extended partnerships and app store
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After six months in direct and retail sales, Google Chromebooks are finally coming to the channel through a pilot program that will enable select solution providers to resell, integrate and support the subscription-based netbooks to businesses.
As first reported by CRN yesterday, Google quietly launched a pilot program to select Google Apps resellers. The move has been anticipated since the launch of Chromebook last July.
“The channel is tremendously important to us. We’ve been very deliberate about how we extend our reach since Chromebooks represent a new way of thinking about computing. Over the past several months we have been selling the product direct from Google and our next step is to involve some of our existing Apps resellers to open up the channel,” Google told CRN.
CRN reports excitement among Google partners who say demand for the devices is actually higher than many suspect. Cloud Sherpas, one of Google’s largest and most progressive Google Apps resellers and integrators, is making a big splash about participating in the pilot by promoting its integration capabilities.
“Chromebooks represent a big opportunity for organizations that have already gone Google with Google Apps,” said Chris McGarry, vice president of Strategic Solutions. “For the first time CIOs can deploy, manage, store and secure all users, data, applications and infrastructure in the cloud, from a Chrome-based device. That’s a powerful statement, with major cost and efficiency benefits. Our unique ability to guide clients through this process will ensure they get maximum value for their Chromebooks investment.”
Google is looking to disrupt the conventional OS paradigm by offering a low-cost device in which the customer must buy a subscription for the Chrome OS . The subscription includes all updates, continual updates and maintenance. While the exact pricing varies, the total cost of ownership is comparable, if not less than, a typical Windows deployment.
So far, Chromebooks haven’t fared well in the general market. Consumer sales have been reportedly disappointing as initial devices, manufactured by Samsung and Acer, haven’t produced much traction amid the consumer excitement for tablets. Although, manufacturers tell Channelnomics they’re seeing strong interest in Chromebooks in the education channel, as schools need affordable and easy-to-maintain devices.
Google was forced to change its sales model in October to accommodate the accounting and budget constraints of business buyers. Rather than selling on a recurring monthly subscription, Google now offers businesses the ability to buy a full-year subscription up front with the option to renew for years two and three. This helps businesses essentially purchase Chromebooks as a capital rather than operational expense.
>> CHECK OUT: Google Changes Chromebook Model
Google is also working with its manufacturing partner Samsung to extend Chromebook sales through select Samsung resellers. Google tells Channelnomics that resellers of Acer, its other manufacturing partner, are not participating in the pilot at this time.
A new addition to Chromebook is the integration of the Chrome Web Store, which makes applications built for the Android/Chrome OS available to users. Google is looking to replicate the early success of Amazon and its Kindle Fire tablet in after-market subscriptions and application sales.
Google’s introduction of the Chromebook to the channel is a good sign that it won’t retreat the way Hewlett-Packard did with the TouchPad tablet. Google has a tough road ahead if it wants to disrupt both the Microsoft Windows-dominated PC operating system market and conventional sales model. Enlisting channel partners will definitely help bring more attention and adoption to the Chromebook.
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