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and they lost a lot of people who are pinching pennies when they start but would be hooked into the system by the time they needed the upgrade.


I would have (read: I did) assume that, but do we really have any data on whether or not this actually was the case? Google presumably considered this and made a decision based on the data available to them. Now that this decision was announced, it seems that this assumption is false. Google must not be hooking nearly enough businesses into using this system for money or they would not have made this decision. Of course, this assumes Google Apps is run by rational people.




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