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Google is ramping up its enterprise offering with the planned release of its paid-for email domain hosting service, potentially by the end of this year, to complement a suite of productivity tools.

And although Google claims it has already seen "tens of thousands" of small businesses opt for its beta service over rival offerings such as Microsoft Outlook and Exchange the big picture here is not Google v Microsoft, it claims – in fact Google wants, and needs, Microsoft to succeed with releases such as Office 2007.

Dave Girouard, VP and general manager of Google Enterprise, told silicon.com: "It's not really our intention to take a bite out of Microsoft. My belief is the real opportunity is there for companies to use both."

Girouard said even within Google that is the case, expressing the belief that businesses will find a balance that works best for them.

"There will be times when it makes perfect sense to use Google products and there are times when it makes perfect sense to use Microsoft products," he said, adding that Google's hosted apps will typically fit where greater collaboration is needed".

Full story: silicon.com