The ability to communicate in real-time using instant messaging is increasing workers’ productivity and that in turn is driving IM adoption in the enterprise, according to a recent study by the Radicati Group.

Although corporate IM accounts are expected to reach 60 million in 2003, IM still hasn’t reached its full potential in terms of usage or functionality in the enterprise space, says Genelle Hung, market analyst at the research firm. Corporate IM accounts are expected to increase to 349 million in 2007.

Over the next 12 to 18 months users can expect to see the integration of IM with other enterprise applications such as CRM and ERP, officials from several IM vendors said during a panel discussion moderated Thursday by Radicati. The study results were also discussed during the conference call.

AOL, Microsoft, Sun, Bantu, Comverse, and WiredRed Software all participated in the call.

"Through the management server we’re going to let people tap into the (IM) service at an application program interface level and leverage presence, leverage messaging, and do all that stuff that leverages encryption," said Brian Curry, senior director of strategy development, Strategic Business Solutions Team at AOL.

He explained this would be for users to plug (IM) in for the "purposes of file transfer and for messaging value-add as well as for the creation of automated agents and adding front-ends to (users’) back office applications."

Users can also expect to see enhancements to security features, and identity management.

"As IM becomes more prevalent in multiple applications, it’s going to become more difficult for people to filter IM messages they get," said Patrick Dorsey, Group Manager for Sun ONE Communications and Collaboration Software at Sun.

"What we see going forward is a greater need for identity management software as well as the underlying profile or description," he said, explaining that these functions would be along the lines of allowing users to determine who can contact them, when and for what purposes.

Vendors of corporate IM products can expect to see their revenues almost triple by 2007, from $116 million to $344 million in 2007, according to Radicati’s report. That is the first type of vendor in the corporate IM market as defined by Radicati: the corporate IM vendors, who provide IM technology to clients deploying corporate IM, according to Hung.

The IDG News Service is a Network World affiliate.