True. But many companies just think that they can install it [on a workstation-class 
PC] and let it hum in the corner. Some of them don't even suspect that there is 
Exchange-aware backup.

Also with Exchange 2000, Microsoft made hosting licensing more attractive than regular 
licensing.

-----Original Message-----
From: Roger Seielstad [mailto:roger.seielstad@;inovis.com]
Sent: Friday, November 08, 2002 2:15 PM
To: Exchange Discussions
Subject: RE: somewhat OT


Simple. Its not cost effective to outsourse at the levels they target. They
missed the boat from day one.

There is a relative break even point for having your own "IT" staff,
generally in the 25-75 user range, depending on what your company actually
does. More than 100 or so, and you really need someone. Once you've got
someone inhouse, they tend to have to be a jack-of-all-trades type, and do a
lot of fumbling through. But the job gets done.

Traditionally, an NT box with Exchange 5.5 Standard wasn't really that
expensive - you could probably do that for <$10k. Win2k with E2k has raised
the prices a bit, but not exhorbinantly such. With leasing options, that
server could be a few hundred a month.

Like any service provider, the good fruit is in the middle of the tree, not
the low hanging stuff. SO they tended to target 500 person plus orgs. This
600-ish person company has 8 sysadmins - we have enough time to manage
Exchange. Without it, maybe we'd have one less headcount, but I'd bet that
the headcount loss isn't drastically different than the cost of 600 users'
outsourced mail needs.

Now, the other side of this equation is that email is a core business need
for most companies, and isn't that hard to at least get running[1]. More
specialized things, like e-commerce and line of business apps make more
sense in a managed environment. Email never did.

------------------------------------------------------
Roger D. Seielstad - MCSE
Sr. Systems Administrator
Inovis - Formerly Harbinger and Extricity
Atlanta, GA

[1] Running well is a different question, but running and running well
aren't the issue here.


> -----Original Message-----
> From: Greg Deckler [mailto:greg@;infonition.com] 
> Sent: Friday, November 08, 2002 12:25 PM
> To: Exchange Discussions
> Subject: Re: somewhat OT
> 
> 
> You've hit the major players. The entire email hosting 
> business has pretty
> much flopped and consolidated. Critical Path handed over its hosted
> corporate messaging services to HP. United Messaging was acquired by
> Agilera. Commtouch sold its hosted Exchange business to TeleComputing.
> 
> USA.NET and Mi8 are still hanging in there, for now. But this entire
> market space has just been decimated of late. I still think that the
> business case is there for outsourced messaging, but 
> apparently not enough
> people have the same attitude that I do.
> 
> Anyone else care to comment on why they think that this 
> market space has
> flopped? One would think that in a time of economic hardship, 
> companies
> would really be looking to outsource anything and everything 
> they can in
> order to lower costs. If outsourced corporate messaging can't 
> make it in
> today's economy, I have serious doubts that it will ever make 
> it. But the
> question is why? Outsourced messaging holds the promise of 
> lower costs,
> flexibility and the ability to focus on one's core business. 
> In addition,
> many of the outsourced providers can put together systems 
> that have a mix
> of high-end and low-end mailbox services that are all tied 
> together as a
> single system. This means that companies can have Exchange 
> mailboxes for
> those that need it and low-cost IMAP/POP mailboxes for 
> everyone else and
> the outsourcer ties it all together to look like a single 
> email system. So
> why did this market fail?
> 
> > Who all is left in the Hosted E2K (asp-model) game?=20
> > 
> > USA.NET?
> > MI8?=20
> > Critical Path?
> > 
> > others?=20
> > 
> > j
> > Regards,=20
> > 
> > 
> > John Henley
> 
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