Google Seeks Expanded Software Sales

Google is betting cloud computing can help lessen its dependence on online advertising, which accounts for about 97% of its more than $20 billion in annual revenue.

With the expansion into business software, Google also hopes to siphon some corporate customers away from rival Microsoft (MSFT Quote), which depends on its suite of office software products for a huge chunk of its profits.

Google has been selling subscriptions to its business applications for nearly two years, relying exclusively on an internal sales team that is now approaching nearly 300 employees. Although the company has been cutting costs to counteract the effects of the recession, Girouard said Google has no plans to trim its own software sales unit even as it recruits more external vendors to sell the products.

"This is meant to supplement what we already have been doing," Girouard said. Google says more than 1 million businesses currently use its application, although most are signed up for the free version.

About 50 vendors have been approved to sell Google's software so far. Most of them are relatively small firms specializing in business software products.