Serena Software expects to save $750,000 per year by shedding Microsoft Exchange Server in favor of Google's Gmail application for its 800 employees, officials of the Web development software maker told eWEEK Nov. 12.

The move, slated to be completed by the end of 2008, is a coup for Google. The search engine provider has been struggling to entice customers to switch from the Microsoft Outlook e-mail client and Exchange Server on-premises application to its SAAS (software as a service) Web mail, word processing, spreadsheet and other applications.

These applications and data associated with them live on Google's hosted servers, which customers access through the Internet. This method, also called cloud computing, is becoming more popular for cost-conscious companies, which may also be tired of maintaining the servers that house their data.

Ron Brister, senior manager of global IT operations at Serena, told eWEEK Serena has subscribed to Google's GAPE (Google Apps Premier Edition) service, the paid version of Google Apps, for $50 per user, per year. 

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