Google Apps started with the simple idea that Gmail could help businesses and schools work better together without the hassles of managing software and servers. As we grew from a handful of customers to a few hundred, we expanded to offer a premium business version of Google Apps. Fast forward to today and Google Apps is used by millions of businesses. We’ve also added versions for governments, universities and schools.

When we launched the premium business version we kept our free, basic version as well. Both businesses and individuals signed up for this version, but time has shown that in practice, the experience isn’t quite right for either group. Businesses quickly outgrow the basic version and want things like 24/7 customer support and larger inboxes. Similarly, consumers often have to wait to get new features while we make them business-ready.

With this in mind, we’ve decided to make things very straightforward. Starting today for all new customers:

  • Individuals wishing to use Google’s web apps like Gmail and Google Drive should create a free personal Google Account, which provides a seamless experience across all of our web services on any device.
  • For Businesses, instead of two versions, there will be one. Companies of all sizes will sign up for our premium version, Google Apps for Business, which includes 24/7 phone support for any issue, a 25GB inbox, and a 99.9% uptime guarantee with no scheduled downtime. Pricing is still $50 per user, per year.

Source: http://googleenterprise.blogspot.ca/2012/12/changes-to-google-apps-for-businesses.html