8. Lack Of Profitability Prompts Google Partners To Jump To Microsoft

Some channel pioneers who had bet big on Google Apps told CRN in August that they are adding a Microsoft Office 365 practice or even striking Google from their portfolios altogether.

One source with ties to Google estimated that as many as 80 percent of Google’s several hundred once-exclusive channel partners are now selling Office 365 as gross margins on Google Apps licensing and services combined have dropped by as much as 33 percent in the past two years. 

During that same period, Office 365 licensing and services combined margins have climbed by anywhere from 25 percent to 100 percent.