When hosted e-mail goes gangbusters, companies will see savings
April 22, 2008 by Shane BorerPosted in: Cost cutters, In this week's e-newsletter, Latest news & views, Technology
If there was a way to cut certain tech spending by 80% while reducing IT’s workload, you’d jump on it in a heartbeat, wouldn’t you?
Get ready to pounce: The latest research from Gartner, Inc. says hosted e-mail services’ rapidly falling cost will make it a staple for businesses.
Many companies have already passed on the opportunity to roll it out — the number of businesses using hosted e-mail is only 1% of the total e-mail market — but Gartner expects that number to balloon to 20% by the end of 2012.
There are two reasons for the expected growth:
- The cost of hosted e-mail is projected to drop from an average of $10 per user per month down to $2 per user per month, and
- Off-site e-mail spam filters and storage centers are becoming as secure as an Exchange server managed in-house.
Hosted e-mail software as a service (SaaS) means a company can spend far less on necessary communication while freeing valuable IT time for other tasks. It brings the same level of service, but companies no longer need to worry about staffing or monitoring an e-mail system — everything’s outsourced to a third-party vendor.
Companies in certain industries or with heightened message-storing needs may resist moving to a hosted e-mail model, but Gartner notes the change will be from bottom-up. The demand to outsource e-mail will start with small- to mid-sized businesses and eventually move onto larger companies.
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Tags: e-mail, Gartner, outsourcing, SaaS
