The future of Business Email for SMEs

A Cloud Email Service Provider offers web-based email services with which they can send and receive emails, inbuilt spam-protection, calendars-contacts and typically ad-supported are provided free for the consumer. As of 2020 a report says, 306.4 billion emails are sent and received daily and this figure is expected to increase to over 376.4 billion daily mails by 2025. By 2025, the number of global e-mail users is expected to reach a total of 4.6 billion (an approximate six hundred thousand increase in users, up from 4 billion in 2020).

A Cloud Business Email Service provider on the other hand is provided on a domain via an admin control panel that allows it to create domain-based email IDs for its employees and groups with which they can send and receive secure emails across their enterprise, their network of distributors and the entire outside world. For Businesses, more than 80% of the business data resides in the email and no wonder email has become the backbone of all business communications. The Business email hosting services market is poised to grow by $ 30.98 bn during 2021-2025, decelerating at a CAGR of 18.84% during the forecast period.

The journey of Email for Google started in 2004, when it introduced its free consumer email service called Gmail on an invitation-only basis. In 2007, Google offered domain-based business email service for the SMB’s, with a limited number of users. The free tier of accounts was available for users to sign up from 2007 until 2012 at which point, they were changed to a legacy status. In 2012 Google discontinued their G-suite legacy free edition, stopped any further development, stopped any new signups on the same but allowed the existing users to continue to use the service.

On Jan 19, 2022, Google announced that any "G-Suite legacy free edition" business accounts must be upgraded to a paid tier by May 1, 2022 or else the account will be automatically upgraded. If a user does not manually upgrade to a paid tier and if no payment information is entered in the account admin page, the account will be suspended starting Jul 1, 2022. There is a strong reaction from SMEs, as the SME market segment is a price sensitive one, and the Gsuite legacy free edition offer was a boon for them so far. After the announcement by Google to charge all the business users of G Suite legacy free edition email services, SMEs can feel the pinch. For them It is not about paying for it, but the price to upgrade to Google workspace is now not-so affordable. Several SMEs have already started looking to migrate to other cloud business email service providers who provide just the right kind of features required by them.

Experts raises concern on various factors that SMEs must keep in mind while selecting an alternative business email service provider. Yes, they don’t need all the features in the world bundled into an edition. CIOs are seriously considering shifting from Google to other email service providers.The challenge is, who will be the best replacement to G Suite Legacy free edition. There are more than a few email providers that have the potential to become the alternate email service provider for G Suite Legacy edition users. Let’s wait and watch who will be the Cloud business email provider that will solve the challenges faced by the small and medium size businesses in India.