Firms are consolidating their messaging systems

How many messaging systems will your organization have in two years? In a recent survey of Fortune 500 and Forbes 100 companies, Creative Networks, Inc. found that 70% of organizations will have only a single messaging system within two years, 27% will have two systems, and only 3% will have three or more systems in place. This is consistent with past CNI research that shows the continuing trend among large organizations to reduce the number of messaging systems.

Why the consolidation of messaging systems? Managing a single messaging system is significantly less expensive than managing multiple systems, since administration and management training costs are lower, there are fewer points of failure in a single system, and help-desk and end-user technical support costs are lower. In addition, there are fewer problems in the day-to-day management and use of the system, since there are fewer messaging conversion and related problems in a single system.

What will the future hold for messaging system vendors? As organizations consolidate their messaging systems, look for a corresponding consolidation in messaging system vendors. Expect Microsoft Exchange and Lotus Notes/Domino to become the two primary messaging system vendors, with all others vying for a distant third place behind these two market leaders.

We expect many of the smaller vendors to remain in business, but to fight for the remaining 10 to 15% of the messaging seats not accounted for by Microsoft and Lotus. The result will be that smaller vendors will win seats among smaller organizations, while the larger organizations will be the domain of the big two.

Michael D. Osterman is the principal of Osterman Research, 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.

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