Nemertes Impact Analysis

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Microsoft Moves To Build SaaS-based Collaboration

Microsoft (NASDAQ:MSFT) unveiled its strategy for "Microsoft Online
Services," hosted versions of Exchange, Office SharePoint, Office
Communications, and Office Live Meeting. Microsoft plans to deliver these
services directly to end-users as through a growing network of partners.

Microsoft's announcements underscore the growing enterprise interest in
hosted communications and collaboration applications. For example, 75% of IT
executives participating in the Nemertes' benchmark Advanced Communications
Services, say that they are using or planning to use hosted web
conferencing. Approximately 64% of participants in the Nemertes' benchmark
,Service-Oriented Architectures and Applications, say that they are using
at least one SaaS-based application.

Impacts:

Enterprises: Evaluate growing SaaS options as an alternative to on-premises
applications to potentially speed implementation and reduce up-front investment.
Look to both vendors and partners for SaaS applications.

Vendors: All application vendors should have a SaaS strategy. Hardware
vendors should look at growing opportunities to ensure SaaS performance via
application optimization capabilities.

Investors: Look at start-up hosted communication and collaboration vendors
including privately held ThinkFree and ZoHo, as well suites from Google
(NASDAQ:GOOG) and Cisco/WebEx (NASDAQ:CSCO)

http://www.nemertes.com/benchmarks/nemertes_benchmark_advances_communications_services http://www.microsoft.com/presspass/press/2008/jul08/07-08BOSGWPCAPR.mspx

Irwin Lazar, Principal Research Analyst and Program Director, Unified Communications and Collaboration