The following
is based on information available to me, my observances over the last 3 years,
conversations I have had over the last 2 days with Renee in sales, Jill Jones,
David Karp, David Gregg of dgSoft Internet Services, the various posts and
comments on the list, and my opinions.
HARD
FACTS:
1. Any
company has the right to do as it sees fit. This is an underlying principle of
business in the US, if not also
elsewhere.
2. Ipswitch
has decided to focus their e-mail server product on the small to medium
business market.
3. Ipswitch
is intent on pushing AV into the product package.
4. John
Korsak chose to leave Ipswitch earlier this year to pursue a change in career
path. It appears that he is enjoying his chosen path, and I and others I have
spoken to wish him continuing success.
5.
Approximately 7 months ago, Ipswitch announced an upcoming add-on for Imail
called collaboration, with the biggest features being shared calendaring and
shared address books/lists.
6. On
October 25,
2004, Ipswitch
announced the end of live of Imail, and that EOL date being
October 25,
2004.
7. On
October 25,
2004, Ipswitch
announced a new/repackaged product called Ipswitch Collaboration Suite to
replace Imail.
8. All
current service agreements for Imail will be honored for the life of the
agreement.
9. There are
still active version 6.x Imail servers in use.
10. There are
still active version 7.x Imail servers in use.
11. The cost
for an ISP to upgrade with a current SA to the new product is
$3995.
12. The cost
for an ISP version yearly SA is $2295.
13. The cost
for ICS Standard unlimited with current SA (using BitDefender as the AV
product) is $4995.
14. The cost
for ICS Standard unlimited yearly SA is $2295.
15. The cost
for ICS Premium unlimited with current SA (using Symantec as the AV product)
is $5995.
16. The cost
for ICS Premium unlimited yearly SA is $4995.
17. I as a
small business owner can not afford $2295 for the annual SA for the ISP
version, let alone the $3995 for the upgrade.
SUBJECTIVE
FACTS: (These are purported facts by the reporter, but which I lack the data
to accept or reject fully.)
1. Per Jill,
the majority of cost for Imail support was in direct phone support to the ISP
market.
2. Per Jill,
the SAs that were purchased as well as purchases of Imail and its associated
products did not cover the cost of continuing development and
support.
3. Per Jill,
there was a major problem of SA expirations between Imail and the AV add-on
which was causing confusion/frustration with customers that had SAs for
both.
4. Per Jill,
there were more requests for the AV add-on than for new Imail
purchases.
5. Per an
Ipswitch source to remain unnamed, there have been problems in the marketing
department personal over the last several years.
6. Per Jill
and David Karp, Ipswitch performed marketing research into what customers and
potential customers of an Ipswitch e-mail server desired.
7. Per my
instincts, Ipswitch used to some extent data from an outside marketing firm
that was not directly derived from Ipswitch customers.
8. Per
reports on the Imail list, Ipswitch support of problems reported by Imail
users has been less than satisfactory on a whole.
9. Per David
Karp, there will be at least one more version of Imail within the next year
for those users with a SA for Imail, most likely 8.16 or
8.20.
10. Per my
instincts, there will be still active version 8.x Imail servers in use 2 years
from now.
11. Per an
Ipswitch source to remain unnamed, there were/are several people within
Ipswitch that do not agree with parts of what Ipswitch has done/changed to
Imail.
12. Ipswitch
is will fully abandoning a specific segment of their customer
base.
My
Opinions/thoughts/recommendations:
1. Marketing
surveys should be taken with a grain of salt. The outcome of the survey is
dependent on the questions asked, and the questions asked is subjective to the
one asking and/or under the direction of the entity desiring the
results.
2. Sales
should always be taken with a grain of salt, as they have a motive in selling
the product they are offering.
3. Ipswitch
should offer a basic ICS package for EXISTING ISP customers with a current SA
for Imail without AV included for around $1000.
4. Ipswitch
should abandon the flat yearly SA fee model, and instead adopt what other
software vendors have: A 2 level SA scheme, where by you can purchase a yearly
upgrade SA for say $250 and a unlimited yearly support SA for say $750. If you
do not have yearly support SA, a per incident support fee of say $250 would
apply. (Those prices would be for ISP versions. Business version would have
higher rates.)
5. Just
because a specific segment of a customer base does not result in good income
amounts is not reason to abandon them out right.
6. I have a
client who falls within the targeted market of the new ICS. For that client to
upgrade to receive the features they have been waiting for would cost them
$4995, a cost they can not afford.
7. ICS
standard 100 user new cost is $2495. Windows Small Business server 2003, which
includes Exchange, for 50 users costs about $4000, and that includes Exchange
and SQL servers. Therefore, from a value standpoint, Windows Small Business
Server 2003 standard makes more sense cost wise that does ICS standard 100
user. Of course you would need to add anti-spam and anti-virus to the server,
but the point is priced too high even for that market.
8. Instead of
using pricing levels of 25, 100, 250 and unlimited users, a more realistic
pricing level would be 50, 250, 1000 and unlimited users.
I am tired
and falling asleep, and I have to be at a client at 6:30
AM, so good
night for now.
John
Tolmachoff
Engineer/Consultant/Owner
eServices For
You
