Google ups security in Microsoft battle

Google has stepped up the fight against Microsoft with the $625m (£311m) acquisition of an online security company aimed at making its web applications more attractive to large businesses.

Privately-owned Postini provides security and encryption tools, which protect instant messaging and email. Its customer base spans more than 35,000 businesses and 10m users worldwide. Google hopes the acquisition will make its Google Apps product more secure. Google Apps is a package of applications available online, such as email, word processing, and instant messaging, aimed at small businesses.

The package is in direct competition with Microsoft Office. It is supported by advertising revenues but companies can pay $50 a month for an ad-free version.

Dave Girouard, vice president and general manager of Google Enterprise, said: "The response to Google Apps has been tremendous, with more than 1,000 small businesses signing up for the service every day.

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