NETWORK WORLD NEWSLETTER: MICHAEL OSTERMAN ON MESSAGING
10/26/04
Today's focus:  Why managed e-mail services are likely to do 
well

Dear [EMAIL PROTECTED],

In this issue:

* Managed e-mail services have several pluses in their column
* Links related to Messaging
* Featured reader resource
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Today's focus:  Why managed e-mail services are likely to do 
well

By Michael Osterman

There are three basic ways to manage e-mail security defenses, 
such as anti-virus, anti-spam, secure messaging and other 
services: deploy software on your own hardware and operating 
system; install appliances that combine hardware, software and 
operating system in a single, rack-mounted box; or use a 
third-party managed service in which all of your messages are 
first routed through an off-site data center for processing and 
cleaning before delivery. Today we'll focus on this last option.

Companies that offer managed services are doing very well. 
Providers like Postini, FrontBridge Technologies, MessageLabs 
and a host of others are gaining new customers and mailboxes, 
and this segment of the market is growing rapidly.

There are two key reasons for the success of the managed 
services market. First, the services are extremely easy to 
deploy. All that is necessary to initiate service is to modify 
the MX records of a domain, which can be completed within a few 
hours. There is no hardware or software to install, no 
significant IT staff investments have to be made, and the 
providers can eliminate the vast majority of viruses, spam, 
worms and other unwanted stuff quite effectively.

Second, if you examine the total cost of ownership for managed 
services vs. in-house solutions, a managed service can be less 
expensive to operate, although that is not always the case.

Another advantage of the managed-service approach is that these 
services can act as a sort of rudimentary disaster recovery 
system in the event of a failure of your messaging system - if 
your messaging servers go down, e-mail simply spools on the 
service provider's servers until your messaging servers are back 
online. Those who send e-mail to your domain won't encounter 
bounce-backs when your servers are down.

Obviously, the entire messaging security market is going to 
continue to grow - but I believe we may see the strongest growth 
in managed service providers over the next 12 to 18 months. A 
significant part of the market is warming to the idea of managed 
services. Although there continue to be (often unfounded) 
concerns over the long-term financial viability of some 
providers and there tends to be resistance to letting a third 
party have access to corporate message stores, very often this 
resistance can be overcome. Further, in a growing economy, IT 
staff are more difficult to find and retain, so many companies 
may simply decide that the best use of their IT staff members is 
in areas that provide additional value to the enterprise.

I'd like to get your thoughts on the future of managed service 
providers, particularly your attitudes toward using them. Please 
drop me a line at <mailto:[EMAIL PROTECTED]>

RELATED EDITORIAL LINKS

IM helps connect healthcare company
Network World, 10/25/04
http://www.nwfusion.com/news/2004/1025imuser.html
_______________________________________________________________
To contact: Michael Osterman

Michael D. Osterman is the principal of Osterman Research 
<http://www.ostermanresearch.com/>, a market research firm that 
helps organizations understand the markets for messaging, 
directory and related products and services. He can be reached 
by clicking here <mailto:[EMAIL PROTECTED]> 
_______________________________________________________________
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Archive of the Messaging newsletter:
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