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Aug 10
2006

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Microsoft does not rain clouds on small businesses – a comprehensive evaluation of Microsoft's online services

Microsoft is SAASy

Flashback

Used to be the undisputed leader in the early days of computing, Microsoft has never been easier since the advent of the Internet. Whatever the hot new Internet technology, Microsoft has never taken by surprise. It has never been the innovator and continues to behind in terms of success. Google is broke and looking for online advertising, Yahoo IM and e-consumers, Blogger, WordPress, and Typepad are much better at blogging software, has never appeared on the battlefield networks MySpace and Facebook social decision perch.

But some markets, especially business markets, where Microsoft has continued to have a strangle hold, which has maintained its cash registers jingle, and a frenetic pace in the archive. They were the market Series PC with Windows OS, MS Office Office, and cows Prize – MS Exchange and MS Sharepoint enterprise messaging and collaboration.

Now, the above are essential software for any company, and 5-10 years ago, Microsoft has, without doubt, provide the best available solutions. In those days, because everyone was looking at the profitable segment of large enterprises with thousands of users and implementations of the entire IT budgets to crack, was for the public of these software packages have been developed. Thus, even if Exchange and Sharepoint implementations need dedicated servers and complex dedicated to man and maintain the system, nobody bothers me, because these companies mega money and staff had to spare.

Present

But there was a segment in mind, the small and medium enterprise (SMEs), the segment had neither the staff nor the resources nor the desire. Since not many alternatives are available, they had to carry the load, or without such technologies together. But recently, things began to change. In the last three years a new approach has emerged, driven by technology and increased bandwidth – the software as a service approach. And its primary market is the small business segment.

In a recent survey by Cutter Consortium SaaS, almost three quarters (72%) of respondents said they use Web-based solutions to meet unmet needs. More than one quarter of respondents (28%) expect that these solutions to reduce their costs by 20% -30%.

It is true that there is some skepticism about the viability of first SaaS, as it involves letting go and allow a certain control critical data of the organization on the basis of a third party provider of SAAS servers. But the benefits of this approach have been so overwhelming, due to suppliers as HyperOffice SAAS salesforce.com and effectively deliver solutions over the years, as organizations in general, companies from small to very large, have been converted.

Microsoft plays catch

With the market saturated with the company, Microsoft also has been looking for small market and relatively undeveloped medium-sized companies in recent years. Saas Given the success of this segment, Microsoft has launched a series of software features that are offered as a service, makes recently, under the banner of Microsoft Office Live. But the real success in this sector has been "Hosted Exchange" and "Hosted SharePoint" solutions offered by independent suppliers, many of them certified Microsoft partners. First, a little refresher:

What is Hosted Exchange (And how it differs Exchange Server)?

Each company has dedicated employees and business email solutions based on productivity to lubricate daily work (task management, calendars, address books). To meet these universal needs, Microsoft Exchange Server developed with major Features include email, calendar, contacts and tasks. The Exchange client front end that allows all employees access this information is often Outlook, Exchange, but also supports mobile and web-based (called Outlook Web Access or OWA for short). But the implementation of Exchange is not easy, it includes the establishment of a dedicated server to perform a complex implementation change, the more additional anti-spam and anti-virus deployments for the server insurance. In addition, a dedicated staff should be hired to oversee the system and operate and manage a large number of complexities that can arise, because Exchange is a solution very large.

Hosted Exchange, however, all aspects of the implementation and maintenance of applications are outsourced Exchange servers in an expert "Hosted services" provider. The customers always get the best features of Microsoft Exchange – email dedicated shared calendars / contacts Assignments and premium features such as mobile and Internet access to information (usually an additional cost). But unlike a house of the application, where everyone has access to Exchange on the LAN, in this case, it can be accessed online. This approach is especially beneficial for small and medium which are registered the enormous costs of implementation in the home, but have to pay a reasonable monthly fee.

What is hosted Sharepoint (and in what differs from SharePoint Server)?

Apart from the basic functions of messaging, companies also need the ability to manage business information stored in documents and the ability of employees to work together on this information. Is SharePoint, collaboration based on Microsoft's browser and platform management Document ago. It can be used to host a website and create a company that includes shared workspaces and documents, as well as specialized applications such as making lists, discussion forums, wikis and blogs. But the power of SharePoint is coupled to its complexity. This implementation is no less complex and more expensive than Exchange. Furthermore, no end user friendly. experts can not directly share their knowledge, they must always go through it, or brokers, or training specialized time-consuming and distracting attention skills. Knowledge is not dispersed freely throughout the organization, but is stifled by having to go through the neck collar bottle information.

As with Hosted Exchange, Sharepoint allowed in all aspects of the implementation of Sharepoint and Management have entrusted to outside suppliers. Customers can access the online features of SharePoint, but for a reasonable monthly fee.

Microsoft Services takes plunge Large

Until the market has not important, Microsoft has been content to sell products such as Exchange and Sharepoint software, and let their partners and independent non-housing providers. However, given the growing SaaS market lately, and its future prospects, along with strong competition "alternative" collaboration and messaging offerings like Google Apps, Gmail and HyperOffice, MS, and in October 2007, Microsoft has finally made the move when he announced Hosted Exchange and Sharepoint companies with more than 5,000 seats – known as Exchange Online and SharePoint Online. In February 2008, went further in opening its services to all organizations, regardless of their size.

The News – from "Hosted Service Packs Microsoft"

According to its rapid movement in recent years, the July 8, 2008, Microsoft has made another announcement, the introduction of a novel, if not contested strategy. In addition to its unique offering hosted services, announced that from 2009, also offered that "a lot", a combination of services at a lower total cost.

Microsoft has created two "packages" Deskless Suite style workers and employees of private information. The following Deskless worker is priced at only $ 3 per month per user and includes the exchange of online services as well as read-only access to SharePoint Online Services. This is supposed to be targeted at workers who generally spend a very small part of their day on the computer. Information Workers Next is priced at $ 15 per user per month and includes a full range features, including Exchange Online, Online Share and Live Meeting, Microsoft's software for Web Conferencing.

Assessment

Great Solution?

At first glance, it appears that Microsoft has launched a great offer. All the best range of Microsoft business applications race, united in a very affordable price per month. Exchange Online for email, calendars, notebooks Address, task management and Web access and online collaboration, Sharepoint mobile and personalized portals for teams and sponsors, and LiveMeeting to conduct audio and video conferences with several participants, regardless of location. All available to customers in a single offering, an amount soon reach 15.

A good opportunity to validate the parties – and where they have the right idea messagin, project collaboration, document management, Outlook exchange, a couple of meetings with Online.

ThinkAgain

Every time something seems so perfect, it still makes sense creation of the guards, and look closer. The first sentence is again – "together in one" or "all in one." Does this mean that all the great deals Microsoft's integrated into a single unified all aspects of communication with others? Or does it mean something else.

Well, that is otherwise. Although referred to as a "one price." The services remain exactly as they were, only cost less when purchased together. Individually, Hosted Microsoft Exchange Online sells for $ 10, $ 7.25 SharePoint Online, Office Communications Online for $ 2.50, and Office Live Meeting Online for $ 4.50. Therefore, a set $ 15 price represents a savings of $ 9.50 per user per month.

Moreover, even the separate components of new offers Microsoft, are a solution skeleton, which requires the implementation and configuration, before a viable solution implementation. It is the effort of companies smaller average size are not equipped to do than not do. Although prize packages from Microsoft can be very tempting, one of the majors reasons go to "hosted service" providers, first, is that in addition to your accommodation also offer managed services. All aspects of configuration, integration and maintenance are concerns. If all components – Exchange, SharePoint, Office Communications and LiveMeeting; be integrated into a simple and uniform, which will require scale application.

So while Microsoft offers seems attractive from afar, there is no end to the final, ready to use business solution really looking. Microsoft provides all the pieces, but remain separate parts that go together. Even the price of miserable workers following Deskless has attracted much criticism. The verdict is that it refers to an imaginary class of workers who only need access read-only information the company. While workers real life in this sector have no access to company information systems as they often interact with the gravity system. An example is a nurse who may need to keep stocks of medicines to the hospital daily.

Hosted Services provider perspective

With Microsoft jumping into the fray, and competitive prices to traditional suppliers (Microsoft Solution Providers) for Microsoft Exchange and Sharepoint hosting is certainly feeling the heat. Building infrastructure Microsoft's servers, and then sell it to a service offers a permanent and stable source. But Microsoft is offering these services will cut directly into their pockets and can hardly hope to compete with the price of Microsoft.

Microsoft is well aware the last announcement pinched partners stay skinny, and have no intention of cutting the image completely, another ad designed to keep your interest. Members can sell Microsoft delivers new hosted services and pocket a percentage of revenues. Members receive a 12 percent per month per user, for a contract before the first year and 6 per cent per user per month subscription fee in place. Thus, in the first years, resellers of hosted services will receive 18 percent margins on the amount of subscription, and 6 percent for subsequent years. But despite this nucleus, the partners are still smarting from the resale of Microsoft will not be as profitable as to eliminate the premise deployments.

Some manufacturers are concerned that Microsoft gets in the way of all or nothing to try to find the next project to generate revenue from consulting rather than recurring revenues associated reception and SharePoint servers running Exhange.

There is Hope

While hosted service providers that provide skeleton Microsoft Hosted products will feel the competition of new offerings from Microsoft, but there is only providers who do. An essential part of what these companies has been always an added value of integration, consulting and management services on top of the base host the Microsoft products for its customers. And this need for integration, management and consultation is that Microsoft only the basic provision of accommodation for their products, while end-users need ready products without the hassle of implementing and managing demand.

Therefore, these companies can continue doing what they have done over and attract more customers – Exchange and SharePoint hosted on their servers, and build solutions on top of it and offer their services to customers. Alternatively you can resell Microsoft hosting services, adding value added services on top of this, and attract a surcharge. Example is the provision of support for e-mail on the iPhone and Blackberry depriving Hosted Exchange does not work. Or a company able to integrate all components of the Microsoft – Sharepoint, Exchange and Office Communications LiveMeeting, in a simple and uniform with a centralized console.

The search for truth "complete" solutions

Although this announcement, Microsoft is not fully deliver what appeared to provide the need that has tried to address is still very relevant. Need a real end to end messaging integrated collaboration and web conferencing solution, with each connection seamlessly across components and communicate with other components. The solutions do not require no hardware, downloads or maintenance and are ready for use from day one. The solutions come in a very affordable monthly subscription.

Thus, customers must wait until the end for a couple years before anyone else had this challenge? The answer is a resounding "definitely is not!". Although Microsoft may believe it was the first to respond to this urgent need (not really meet the need), which was for the exact reason for the pressure of the products of competition that Microsoft "accommodation supplied" dive. Google to offer credible alternatives to many Microsoft Exchange and Sharepoint with Google Apps, Google Pages, Gmail and everything. But even Google's flagship products are fragmentary, and not reached a truly integrated end to end solution. Furthermore, no web conferencing solution for all, which is crucial in a solution completely full.

But there is another category of solutions providers that can not be as big as Google and Microsoft, or get that kind of time occupied antenna solutions, but they have proposed for years very convincing small and medium enterprises companies. Many of these solutions would embarrass the biggies, and they are in intimate contact with the real needs of small medium enterprises segment. To present my case, I will discuss the HyperOffice Web applications. HyperOffice has been exploited in the exchange and SharePoint Alternative "field for years, and they built its fundamental solution in place, based on experience. It would be wrong to say that they have done for years that Microsoft has promised to do before, and not even do that.

Now, to evaluate HyperOffice on the basis of the parameters we set for a true end-end solution.

Exchange Features

HyperOffice includes e-mail from the company, management shared contacts, shared calendars and shared management. It also includes integration Outlook and Outlook can be used to power the accounts of its employees if Exchange is running in the background, only that its not. Users can access their accounts on their computers using Outlook or online using any browser Mac or PC and all information is automatically kept in sync. In addition, users also can access their accounts and synchronize mobile devices like iPhone, Blackberry, etc.

SharePoint Features

As an alternative to Sharepoint, HyperOffice includes a tool for the editor that can be used to establish dedicated intranet and extranet sites for employees, departments, partners or customers. The editor allows you to fully customize workspaces to the needs of users. Users can manage in good condition, design, pages interconnection of these workspaces. You can also choose from a range of collaboration tools add to each workspace – document management, calendars, address books, task lists, task management, forums, chat, polls, etc.

HyperOffice also includes an online tool for rich document management. Allows Easy online storage and organization of all types of files and allows people to collaborate on documents with features such as version control, notification, blocking, protection against crushing, etc.

Web Conferencing

Of According to the price increase and increased travel businesses to remain open to Web conferencing as a means of communication, recently introduced HyperMeeting HyperOffice, its web conferencing tool. There are as robust as any web conferencing solution, with the ability to conference with up to 125 participants, file sharing, presentations, applications and desktop sharing, whiteboard, etc.

Integratedness

The best of a solution like HyperOffice is that all pieces fit perfectly with the whole. This makes sense because even in a company, all parties are always interacting with each other, and so should be with collaboration solution. Consider the following scenario – A conference on the Web must be established. As is invited to a meeting should be sent to all participants. Therefore, an automatic tool of invitation to participate. Invitation tool needed to talk with address books so that recipients are selected right. Furthermore, to ensure that participants did not strike schedules, times should be compared. Before the meeting started some of the documents may be needed to distributed to participants, and has worked on. Therefore, the document management tool would be involved. The conference may be related to a milestone in a project. Thus, the project would cause management tool. This is just a situation where we can explore different parts of the system has to interact with each other; may have a myriad of other situations. The synergies to be had in this system are enormous.

With HyperOffice, the different components to meet system simply logical and efficient. No wonder he was nominated for several awards in the "design" category. The solution allows users to create workspaces for people with tools such as email, document libraries personal address books, calendars, lists, links, etc. Level Workspaces of seconds you can set reminders for groups such as document management and collaboration, shared calendars, shared address book, task groups, conferences web, forums, polls, chat, etc. an excellent example of meeting messaging, collaboration and Web conferencing.

In addition, HyperOffice includes a series other features that can only come after years of experience working with clients. It is the ability to integrate the solution with Outlook, access devices phones like the iPhone and Blackberry, and the ability to manage documents and drag and drop upload documents directly from office.

Another important aspect of a administrative point of view, is the ability to handle everything from a central console. All aspects of collaboration are in HyperOffice and users do not have to look at different directions and discover a wealth of software for different applications.

Adapted to SMEs

Big names like Microsoft and Google eye remains the large customers a range of about 5,000 seats due to the press in order to benefit from these clients. Therefore, the products and services about these products is formed with this segment in mind. Small companies like HyperOffice, but have been developed specifically for small businesses segment medium-sized and refined through years of experience. The burden of proof in the development of products ready for use with the "easy" functionality.

HyperOffice has only one list and can be put in place almost instantly. It is a user tool Finally, as everyone can move through the system and publish the information or use tools. No technical knowledge is necessary to implement or use. In addition, they also offer free training and support services help companies on the road. If a customer wants, you can easily reduce the solution, and choose a subset of the tools available, according to their needs and comfort level, rather than more.

Conclusion

In conclusion, although Microsoft has opened its hosting solutions all, they are still appropriate for organizations that are large enough if not great. Sellers can also sell packages of Microsoft with the release integration and management, but then ask for a surcharge and the price tags do not stay down. Frankly, even at its headquarters avatar, Microsoft tools have not are suitable for small businesses, because they never developed for this segment, and the effect always try to get a big foot in a small shoe size.

Clearly, the lesson for growing organizations is that even if Microsoft and other big names have a little bit late "for medium-sized enterprises train, you must cut through the hype, and look in all directions to the best solution. And most often the best solutions will be those who come elsewhere.

About the Author

The author has 5 years experience working with web based technologies. His expertise lies especially in collaboration applications for the SMB segment.

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