In December 2006 I penned: “How Google could bundle its products and launch a Salesforce Killer,” today they partnered instead.

I think this shows that bravado notwithstanding, Google is still in many ways scared - or rather, concerned - with Microsoft.  MSFT’s awesome cash hoard would scare anyone.  Point is: Google can’t

- necessarily launch just any product even if it can, Salesforce has a distribution channel and large user base in place.

- does not really have the financial wherewithall to buy Salesforce, with its $5B market cap.  Bear in mind that Google is set to part with $3.1B of its $10B to buy Doubleclick.

But given Salesforce.com’ SaaS model, this is one partnership that Google needs to have in its back pocket…

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