Comparing the Cost of Email Systems Michael Osterman President, Osterman Research

1. Comparing the Cost of Email Systems Michael Osterman President, Osterman Research GWAVAcon Las Vegas January 25, 2010

2. About Osterman Research • Focused on the messaging, Web and collaboration industries • Practice areas include archiving, security, encryption, content management, etc. • Strong emphasis on primary research conducted with decision makers and influencers • http://www.ostermanresearch.com/survey_panel03.htm • Founded in 2001 • Based near Seattle

3. Comparing the Costs

4. Email is Critical • Duh! • Users send and receive 124 to 149 emails on a typical day • They spend a mean of 152 minutes per day using email • 45% of email users report that their use of email is increasing • 74% of outgoing content is sent through email • Outside of work: • 82% check work-related email from home on weekdays • 61% check work-related email when on vacation

5. Email Costs Email costs $15 to $50 per seat per month Much or most of the cost of an email system is the labor necessary to manage the system Do you take soft costs into consideration? What if you don’t know the cost of email?

6. Key Considerations Labor is the largest email-related expense and should be a key issue in selecting a system Migrating email systems can be expensive Hardware requirements can be a significant cost of the TCO for email (but rarely are) Downtime is a major cost component

7. The TCO of Email

8. Most Don’t Know Their Email TCO Estimated Cost of Email Per Seat per Month Confident in the Ability to Estimate Costs Do you know what email costs? Most don’t

9. We Studied the Costs • Methodology • Osterman Research conducted 132 surveys in Fall 2008 and Spring 2009 • Focus was on GroupWise, Exchange and Domino • 132 surveys were completed • Contacts came from the Osterman Research survey panel • Goal was to determine two things: • How many users can be supported per FTE administrator • How many minutes of unplanned downtime are experienced in each environment during a typical month

10. A Caveat Exchange, Notes and GroupWise are all solid systems from reputable vendors The goal is not to bash any vendor We aren’t taking sides in this analysis!

11. Survey Results (across all surveys) • Median users • GroupWise: 1,000 • Exchange: 1,300 • Domino: 13,815 • Median users per FTE admin • GroupWise: 3,000 • Exchange: 854 • Domino: 2,301

12. Survey Results (for orgs with 1,000+ users) • Median users • GroupWise: 3,700 • Exchange: 4,000 • Domino: 18,415 • Median users per FTE admin • GroupWise: 10,000 • Exchange: 1,625 • Domino: 2,779

13. FTE Staff Required to Support Users

14. Conclusions from the Survey • The data we found is consistent with other Osterman Research surveys • GroupWise requires less admin time per user than Exchange or Notes/Domino • However: • Your mileage may vary • There can be scenarios in which Exchange and Notes/Domino can have lower admin requirements

15. Calculating TCO • Assumptions • Fully burdened salary for an IT admin: $80,000 • Annual wage growth: 5.0% • Mean hourly labor cost • Year 1: $28.47 • Year 2: $30.29 • Year 3: $31.80

16. Hardware (1,000-seat deployment)

17. Software (1,000-seat deployment)

18. Labor (1,000-seat deployment)

19. Downtime (1,000-seat deployment)

20. Total TCO (1,000-seat deployment)

21. Distribution of Costs (1,000-seat deployment)

22. Summary and Conclusions The use of Windows Server does not have a dramatic impact on the TCO for GroupWise Labor represents a smaller proportion of total overall costs for GroupWise than for Exchange or Domino Hardware has minimal impact on TCO – hardware costs could triple or quadruple and have little impact on TCO

23. For More Information Osterman Research, Inc. +1 253 630 5839 info@ostermanresearch.com www.ostermanresearch.com twitter.com/mosterman