Google announced today that all future signups after May 10th for Free Google Apps accounts, which includes Google mail for Apps (i.e. Gmail at your own domain name), will be required to upgrade to Google Apps for Business ($50 per year per user) if they require more than ten (10) users.  This is a departure from their former policy that allowed an initial limit of as much as 100 users (and upon request, more) for free.  Google sent email informing all current Google Apps (free) customers that Google would honor whatever limits were in place on currently existing accounts, and allow the adding of new users to those accounts at no additional charge.

This represents the next step on the march towards a more predictable monetization of Google's largely free Cloud-based services.  Currently "free" accounts are subsidized by advertising.  As not much advertising is presented, presumably this not a big profit center for Google (actually, it's more likely a loss leader).  Paid accounts permit the domain administrator to choose whether or not advertising is presented through the web-based mail interface.  Users of desktop or mobile email applications do not see Google's advertising in either paid or free accounts.  While their services are extremely well-priced and remains available for free to individuals and small organizations, this move is likely to upset at least some users who expected Google Apps to always be available for free at all levels.