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Google Apps is 'Profitable and Growing'

Google's productivity software for businesses isn't supposed to contribute to the search giant's bottom line for at least another couple years, but enterprise president Dave Girouard, speaking at an investor conference on Thursday, said the company's enterprise offerings, which include Googel Apps, is already bringing in a "few hundred million" per year in revenue. "It's profitable and it's growing," Girouard said. "It's only in the context of Google's ... search advertising business that it looks small."

Google charges businesses $50 per user for its Google Apps tools, which include Gmail, Calendar, Talk, and Docs and Spreadsheets. Girouard said Apps "is very profitable" because it runs on the company's existing infrastructure. Adding users, he said, "costs us very little money." Girouard didn't comment on competitors like Microsoft, which recently won the battle to sign Proctor & Gamble. "We're not going to win every battle," he said. "We are very early in this thing."

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