Gmail Removes Invitation Restrictions

By Leo Blanco

TMCnet Contributing Editor

 

Google (News - Alert) has broadened the reach of it free e-mail service, Gmail, worldwide by removing its invitation-only restrictions. However, “beta” or test status remains to signify that it is still a work in progress.

This recent development is projected to alter the competitive landscape of free e-mail service and deliver major blows over leading competitors Yahoo! Mail and Microsoft’s (News - Alert) Windows Live Hotmail prepare for intensive competition with this recent development.

Since its inception in 2004, invitations are needed in order to avail Gmail’s free e-mail service and market is limited to US, Canada, Mexico and selected countries in Asia and Latin America.

The decision to remove invitation restrictions shows Google’s increased power in computing capacity to accommodate sizeable free storage. Capital expenditures in 2006 reached $1.9 billion with a chunk of the money directed towards expansion of computing capacity.

Current Gmail storage capacity is 2.8 gigabytes which is sufficient to save up to 1.4 million pages. With the increased computing capacity, Google can start selling extra storage capacity to interested users. Cost is speculated to be around $25 annually for 6.25 gigabytes and $500 annually for 250 gigabytes, similar to Google’s photo-hosting service.

Additionally, the increasing importance of other Google key products like calendar and instant messaging are deeply connected with Gmail, prompting Google to remove its invitation restrictions.

Despites its restrictions since 2004, Gmail was able to shake the market by offering relatively bigger storage capacity compared with existing competitors Yahoo! Mail and Windows Live Hotmail that have an e-mail storage capacity of less than 10 megabytes and no invitation restrictions.

With the entrance of Gmail, Yahoo and Microsoft improved their offerings by giving 1 gigabyte and 2 gigabytes of free e-mail storage respectively.

Furthermore, both competitors established upgraded versions that are also in the beta phase. Yahoo even imitated a Gmail feature by offering instant messaging chat within its e-mail service.

According to research firm comScore Inc, Gmail already outdid AOL (News - Alert) to become the third biggest e-mail service with 60 million unique visitors as of December 2006, equivalent to 71 percent increase over the prior year.

However, Gmail is very far behind market leaders Yahoo which had 249 million visitors and Windows Live Hotmail with 236 million. Google will have to combat the reluctance of many people to change their existing e-mail address.

Google co-founder Sergey Brin does not care if Gmail is not the largest e-mail service in the world.

“The trick isn’t getting more people to use the service. The trick is to get more people to use the service more effectively,” stated Brin in a press release.

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Leo Blanco is a contributing writer for TMCnet. To see more of his articles, please visit his columnist page.