Microsoft Hosted Exchange - Market Quadrant 2011

. THE RADICATI GROUP, INC. The Radicati Group, Inc. 1900 Embarcadero Road, Ste. 206 Palo Alto, CA 94303 Phone: (650) 322-8059 Fax: (650) 322-8061 www.radicati.com Microsoft Hosted Exchange - Market Quadrant 2011.......... An Analysis of the Market for Microsoft Hosted Exchange, Revealing Top Players, Mature Players, Specialists and Trail Blazers. September 2011 Radicati Market Quadrant SM is copyrighted September 2011 by The Radicati Group, Inc. Reproduction in whole or in part is prohibited without expressed written permission of the Radicati Group. Vendors and products depicted in Radicati Market Quadrants SM should not be considered an endorsement, but rather a measure of The Radicati Group s opinion, based on product reviews, primary research studies, vendor interviews, historical data, and other metrics. The Radicati Group intends its Market Quadrants to be one of many information sources that readers use to form opinions and make decisions. Radicati Market Quadrants SM are time sensitive, designed to depict the landscape of a particular market at a given point in time. The Radicati Group disclaims all warranties as to the accuracy or completeness of such information. The Radicati Group shall have no liability for errors, omissions, or inadequacies in the information contained herein or for interpretations thereof.

TABLE OF CONTENTS RADICATI MARKET QUADRANTS EXPLAINED... 3 MARKET SEGMENTATION... 5 EVALUATION CRITERIA... 7 MARKET QUADRANT - MICROSOFT HOSTED EXCHANGE PROVIDERS... 10 KEY MARKET QUADRANT TRENDS... 11 MICROSOFT HOSTED EXCHANGE PROVIDERS - VENDOR ANALYSIS... 14 TOP PLAYERS... 14 TRAIL BLAZERS... 29 SPECIALISTS... 36 MATURE PLAYERS... 47 =============================================================== Please note that this report comes with a 1-5 user license. If you wish to distribute the report to more than 5 individuals, you will need to purchase an internal site license for an additional fee. Please contact us at admin@radicati.com if you wish to purchase a site license. Companies are never permitted to post reports on their external web sites or distribute by other means outside of their organization without explicit written prior consent from The Radicati Group, Inc. If you post this report on your external website or release it to anyone outside of your company without permission, you and your company will be liable for damages. Please contact us with any questions about our policies. =============================================================== Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 2

RADICATI MARKET QUADRANTS EXPLAINED Radicati Market Quadrants are designed to illustrate how individual vendors fit within specific technology markets at any given point in time. All Radicati Market Quadrants are composed of four sections, as shown in the example quadrant (Figure 1). 1. Specialists This group is made up of two types of companies: a. Emerging players that are still very new to the industry and have not yet built up much of an installed base. These companies are still developing their strategy and technology. b. Established vendors that offer a niche product. 2. Trail Blazers These vendors offer cutting edge technology, but have not yet built up a large customer base. With effective marketing and better awareness, these companies hold the power to dethrone the current market leaders. Trail blazers often shape the future of technology with their innovations and new product designs. 3. Top Players These are the current leaders of the market, with products that have built up large customer bases. Vendors do not become top players overnight. Most of the companies in this quadrant were first specialists or trail blazers (some were both). As companies reach this stage, they must fight complacency and continue product innovation, or else they will be replaced by the next generation of trail blazers. 4. Mature Player These vendors have large, mature installed bases of customers, but no longer set the pace for the rest of the industry. These vendors are no longer considered movers and shakers as they once were. a. In some cases, this is by design. If a vendor has made a strategic decision to move in a new direction, it may slow development on one product line and start another. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 3

Low Market Share High Microsoft Hosted Exchange - Market Quadrant 2011 b. In other cases, a vendor may simply become complacent as a top vendor and be out-developed by hungrier trail blazers and other top players. c. Companies in this stage either find new life and revive their R&D, moving back into the top players segment, or else they slowly fade away as legacy technology. Figure 1, below, shows a sample Radicati Market Quadrant. As a vendor continues to develop its product, it will move horizontally along the x axis. As market share changes, vendors move vertically along the y axis. It is common for vendors to move between quadrants over the life of a product, as their products improve and market requirements evolve. Radicati Market Quadrant Mature Players Top Players Company L Company Z Company Y Company J Company H Company A Specialists Low Company B Company D Company C Functionality Company E Figure 1: Sample Radicati Market Quadrant Company F Company G Trail Blazers High Functionality is rated from 1 to 10, with 10 being the highest, and 1 the lowest. Market Share is assigned according to the company s ranking in our latest annual reports, based on its user Installed Base (e.g. the company with the largest installed base market share is number 1, the one with the second largest installed base market share is number 2, etc.). Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 4

MARKET SEGMENTATION This edition of Radicati Market Quadrants covers the Microsoft Hosted Exchange market. The Microsoft Hosted Exchange market is a sub-set of the Hosted Business Email market. o Microsoft Hosted Exchange Providers: offer cloud-based Microsoft Exchange services in a wide range of configurations from multi-tenant to single tenant configurations for businesses of all sizes. Well-known Microsoft Hosted Exchange providers include: AppRiver, Apptix, Ceryx, Intermedia, Microsoft, NaviSite, Rackspace, USA.NET, and others. The Microsoft Hosted Exchange market currently accounts for approximately 25% of worldwide Hosted Business Email mailboxes. While many providers in this market also offer standard POP/IMAP services in addition to Microsoft Hosted Exchange, this Market Quadrant looks only at the Microsoft Hosted Exchange part of their business. Microsoft Hosted Exchange providers can offer Microsoft Hosted Exchange in a variety of different mailbox types to subscribers, including POP, IMAP, and MAPI. This report evaluates market share as a provider s total installed base, including all POP, IMAP, and MAPI Microsoft Hosted Exchange mailboxes. Figure 2, below, shows the Microsoft Hosted Exchange installed base as a percent of the total Hosted Business Email market. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 5

Microsoft Hosted Exchange vs. Hosted Business Email (%) Installed Base, 2011 Hosted Exchange, 25% Hosted Business, 75% Figure 2: Microsoft Hosted Exchange vs. Hosted Business Email IB (%), 2011 Note: This Market Quadrant deals only with Microsoft Hosted Exchange providers in North America. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 6

EVALUATION CRITERIA Microsoft Hosted Exchange providers are positioned in the quadrant, according to two criteria: Market Share, and Functionality. Market Share is based on the installed base published in our Hosted Email Market, 2011-2015 report. The Microsoft Hosted Exchange provider with the largest installed base has a market share of 1, the one with the second largest installed base has a market share of 2, etc. In order for a provider to be positioned in the Top Player or Mature quadrants, they need to have a market share of 1 to 5. Microsoft Hosted Exchange providers with smaller installed bases are positioned either in the Trail Blazer, or Specialist quadrants. Functionality we assess each Microsoft Hosted Exchange provider s solution based on a number of key service differentiators. In order for a Microsoft Hosted Exchange provider to be on the right side of the quadrant (Top Player or Trail Blazer), their solution should have the following capabilities: Enterprise Version of Microsoft Hosted Exchange 2010 Microsoft Hosted Exchange providers should be offering the full Enterprise version of Microsoft Exchange Server 2010, not the limited Hosting Mode Microsoft offers as part of Microsoft Exchange Server 2010 Service Pack 1. Hosting Mode is missing key features such as the Exchange Management Console (EMC), Public Folders, Unified Messaging Server role, Federation, Business-to-Business features (crosspremises message tracking and calendaring sharing), Information Rights Management (IRM), Managed Folders, Outlook 2003 Support, Edge Transport Server Role, Resource Forest Topologies, and others. Active Directory (AD) Synchronization Microsoft Hosted Exchange providers should offer Active Directory (AD) synchronization services. This allows customers to synchronize their Active Directory (AD) with their hosting provider s Active Directory (AD) for simplified provisioning of users and groups. For the end-user, Active Directory (AD) synchronization allows for single sign-on capabilities. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 7

Data Center Certification SAS 70 Type II certified data centers are preferred. Microsoft Hosted Exchange providers should also be looking to ensure that their data centers are compliant with the successor to SAS 70 Type II, SSAE 16. Service Level Agreement (SLA) Microsoft Hosted Exchange providers should offer at least a 99.9% SLA. Management Console Microsoft Hosted Exchange providers should provide an ease-of-use management console that allows administrators to perform basic mailbox provisioning tasks with a high degree of granularity over user services. Support Microsoft Hosted Exchange providers should offer an easy-to-reach team of support experts that is available 24/7 to answer questions and help troubleshoot any problems that may occur via phone or email. Migration Support Microsoft Hosted Exchange providers should offer migration tools as well as a professional service team to help new customers migrate to their services. Key Additional Features Microsoft Hosted Exchange providers should provide two key additional features; email security and mobile support. Email Security Microsoft Hosted Exchange providers should offer premium email security services to protect against anti-virus and spam filtering protection. Mobility Microsoft Hosted Exchange providers should offer two-way over-the-air (OTA) email synchronization services via services such as Microsoft Exchange ActiveSync (EAS) or BlackBerry Enterprise Server (BES). Additional Features Additional features and capabilities that Microsoft Hosted Exchange providers may offer include: Microsoft SharePoint Email Archiving Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 8

Productivity Suite Email Encryption Secure Instant Messaging (IM) VoIP Web Conferencing Unified Communications (UC) Customer Relationship Management (CRM) Strong Track Record Microsoft Hosted Exchange providers should have a strong track record in keeping up with new technology and rolling out new features. Note: On occasion, we may put a player on the right side of the quadrant by giving them a higher than typical Functionality Score, even if they are missing one or two of the features mentioned above, if we feel that the other aspects of their solution are particularly unique and innovative. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 9

Low Market Share High Microsoft Hosted Exchange - Market Quadrant 2011 MARKET QUADRANT - MICROSOFT HOSTED EXCHANGE PROVIDERS Microsoft Hosted Exchange Market Quadrant, 2011 Mature Players Top Players Microsoft Intermedia USA.NET Apptix Rackspace SherWeb mindshift NaviSite Go Daddy AppRiver Ceryx Specialists Trail Blazers Low Functionality Figure 3: Microsoft Hosted Exchange Market Quadrant, 2011 High Note: This Market Quadrant deals only with Microsoft Hosted Exchange providers in North America. It only ranks Microsoft Hosted Exchange providers by their Microsoft Hosted Exchange installed base (i.e. seats), not any alternative POP/IMAP mailboxes the provider may also offer. Radicati Market Quadrant SM is copyrighted September 2011 by The Radicati Group, Inc. Reproduction in whole or in part is prohibited without expressed written permission of the Radicati Group. Vendors and products depicted in Radicati Market Quadrants SM should not be considered an endorsement, but rather a measure of The Radicati Group s opinion, based on product reviews, primary research studies, vendor interviews, historical data, and other metrics. The Radicati Group intends its Market Quadrants to be one of many information sources that readers use to form opinions and make decisions. Radicati Market Quadrants SM are time sensitive, designed to depict the landscape of a particular market at a given point in time. The Radicati Group disclaims all warranties as to the accuracy or completeness of such information. The Radicati Group shall have no liability for errors, omissions, or inadequacies in the information contained herein or for interpretations thereof. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 10

KEY MARKET QUADRANT TRENDS Microsoft, Intermedia, USA.NET and Apptix rank as Top Players in the Microsoft Hosted Exchange services market. o Microsoft has found much success with its Business Productivity Online Suite (BPOS). In June 2011, the company extended its commitment to this market by releasing Microsoft Office 365. Microsoft Office 365 is an upgraded version of BPOS, which includes the latest features from Microsoft s 2010 server technologies. The suite also includes Microsoft Office Web Apps and Microsoft Office Professional Plus, services that its partners can not currently offer. In addition, Microsoft has also expanded the value of its cloud email and collaboration offerings this year by announcing a free hosted BlackBerry Service for all its BPOS and Office 365 customers. o Intermedia has done a great job of marketing their services, and continues to be a leader in the Microsoft Hosted Exchange providers in the market. The company offers a full range of services, including email, voice, instant messaging (IM), document management, backup and mobility. Intermedia also has a strong development team, which has helped it to quickly rollout new solutions and features. Unlike most Microsoft Hosted Exchange providers that rely on third-party management and provisioning platforms, Intermedia has developed its own management and provisioning platform, HostPilot Control Panel, which provides account administrators with greater control over features and functionalities. o USA.NET is a security software as a service (SaaS) provider that offers a broad range of email and collaboration services, including email security, email encryption, email archiving, wireless email synchronization, Microsoft SharePoint, Microsoft Office Communications Server (OCS), as well as multi-tenant and dedicated Microsoft Hosted Exchange solutions. The company has differentiated itself from other providers by serving the highly demanding mid-market with highly secure and complex Microsoft Hosted Exchange services. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 11

o Apptix is a leading Microsoft Hosted Exchange provider, and has found much success in offering a broad range of hosted communications and collaboration services to SMBs, including business VoIP, Microsoft SharePoint, Web Conferencing, and Secure Instant Messaging. The company has a strong development team, and is currently one of the few providers that offers a comprehensive unified communications (UC) solution built around Microsoft Hosted Exchange, but also includes Microsoft Office Communications Server (OCS) 2007 R2, Microsoft SharePoint Foundations, and Apptix s own hosted VoIP services. AppRiver and Ceryx rank as Trail Blazers. These companies offer a comprehensive range of services and are innovators in the Microsoft Hosted Exchange market. However, these companies do not yet have the large market share that would position them as Top Players. As these companies build momentum and grow their installed base, they are likely move into the Top Player quadrant. o AppRiver offers a secure Microsoft Hosted Exchange solution for the SMB market that comes wrapped with its proprietary email security services. The company s Microsoft Hosted Exchange employs a unique IP acceleration technology from Akamai that speeds up network connection for an enhanced email performance that is on par with on-premises Microsoft Exchange Server deployments. In July 2011, AppRiver expanded its Software as a Service (SaaS) portfolio by becoming Microsoft s partner for Microsoft Office 365. o Ceryx is a business-class email specialist with over 18 years of experience in the email market. The company has found success offering dedicated and multi-tenant Microsoft Hosted Exchange solutions targeted at midsized organizations that have highly sophisticated email and collaboration needs. SherWeb, mindshift, NaviSite, and Go Daddy are in the Specialist quadrant. These companies have a loyal client base, but have been less aggressive in coming out with new features and functionality. Moreover, their overall market share is also somewhat limited. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 12

o SherWeb offers a wide range of email and collaboration services, including Microsoft Hosted Exchange, Microsoft SharePoint, Microsoft Dynamics CRM, and Microsoft Office Communications Server (OCS). The company differentiates itself from other Microsoft Hosted Exchange providers, by offering a simple, but powerful off-the-shelf Microsoft Hosted Exchange service that is primarily targeted at the SMB market. o mindshift offers a wide breadth of cloud and managed IT solutions, which include services for virtualization, security, storage, VoIP, hosting, customer relationship management (CRM), as well as email and collaboration services. The company has found success in offering Microsoft Hosted Exchange directly to customers via its 123Together brand, and indirectly as a white-label service via its groupspark brand. o NaviSite is a managed service provider that places a strong emphasis on email and collaboration services, particularly Microsoft Hosted Exchange. The company offers multi-tenant and dedicated Microsoft Hosted Exchange services that feature cutting edge technology. Most of NaviSite s success has come from building out complex, dedicated Microsoft Hosted Exchange environments for the mid-market. o Go Daddy is a leading provider of Web hosting, domain names, SSL security certificates, as well as a number of online business services for individuals and organizations. The company has found success offering its simple Microsoft Hosted Exchange Server 2010 service to individual subscribers and very small organizations, which also subscribe to its other Go Daddy services. Rackspace is ranked as a Mature Player. It has a large installed base but does not offer highly innovative solutions. o Rackspace offers a wide range of email, collaboration, file sharing, and online backup services. The company offers a reliable Microsoft Hosted Exchange service, and has differentiated itself from other Microsoft Hosted Exchange providers by offering strong customer support. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 13

MICROSOFT HOSTED EXCHANGE PROVIDERS - VENDOR ANALYSIS TOP PLAYERS MICROSOFT CORPORATION, MICROSOFT OFFICE DIVISION 1 Microsoft Way Redmond, WA 98052-6399 www.microsoft.com Released in June 2011, Microsoft Office 365 is the next evolution for Microsoft Business Productivity Online Suite (BPOS), and will include Microsoft Office Web Apps and Microsoft Office Professional Plus. The comprehensive business productivity suite replaces Microsoft Business Productivity Online Suite (BPOS). Microsoft Office 365 leverages the features of the 2010 versions of Microsoft s server technologies. All services provide 99.9%, financially backed, Service Level Agreements (SLAs) and offer disaster recovery (DR) features via replicated, geo-redundant data centers located on a worldwide basis. Microsoft Office 365 includes the following key services: Microsoft Office Professional Plus - is a subscription-based service which includes Microsoft Word for word processing, Microsoft Excel for spreadsheets, Microsoft PowerPoint for presentations, and more. Also included with Microsoft Office Professional Plus is the new Microsoft Office Web Apps. Microsoft Office Web Apps includes cloud-based versions of Microsoft Word, Microsoft Excel, Microsoft PowerPoint, and Microsoft OneNote for light edits to documents, spreadsheets, and presentations. Microsoft Exchange Online - is a cloud-based version of the Microsoft Exchange Server 2010 platform. It includes newly added features from Microsoft Exchange Server 2010, such as email archiving and MailTips, as well as enhancements from Microsoft Exchange Server 2010 Service Pack 1, such as built-in auditing reports. All Microsoft Exchange Online mailboxes are protected with anti-virus and antispam technologies, and come with 25 GB of email storage. For accessing email, Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 14

calendars and contacts, end-users can use Microsoft Outlook or Microsoft Outlook Web App (OWA). Email can also be pushed to the phone using Microsoft Exchange ActiveSync (EAS). BlackBerry devices can connect to Microsoft Exchange Online via the BlackBerry Internet Service (BIS). A hosted BlackBerry service for Office 365 is being launched later this year by Research in Motion (RIM). Microsoft SharePoint Online - is a cloud-based version of Microsoft s popular Microsoft SharePoint Server 2010 platform. It is a team collaboration platform that can be used within an organization, as well as externally with partners and customers. The platform comes with 10 GB of base storage and 500 MB of pooled storage for each user. SharePoint Online includes My Sites to share and manage personal documents and information, Sites to keep teams in sync and work with trusted business partners, and Intranet sites to share news and information. Microsoft Lync Online replaces Office Communications Online in Microsoft Office 365, and allows end-users to start IM conversations, as well as voice and video conferencing using the Microsoft Lync 2010 client. Microsoft Lync Online also support federation with Windows Live contacts. Microsoft has partnered with RIM to make Hosted BlackBerry Service available free of charge for Microsoft BPOS and Office 365 customers. FUNCTIONALITY: 6 MARKET SHARE: 1 KEY STRENGTHS: Microsoft s strong brand name helps reassure many organizations that may still be on the fence about cloud computing. These organizations prefer to purchase a cloud computing service from a large well-known provider, rather than a smaller service provider they have not heard of before. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 15

Microsoft Office 365 services share a similar code-base with their on-premises counterpart. This ensures that organizations are deploying a proven technology, and hybrid deployments are more easily realized. Microsoft Office 365 adds Microsoft Office Productivity Plus Online, which allows organizations to access Microsoft s latest productivity suite on a subscription basis. Microsoft has partnered with RIM to make its Hosted BlackBerry Service available free of charge for all Microsoft Business Online Productivity Suite (BPOS) and Office 365 customers. Microsoft is also making it easier for organizations to move to the cloud with their new licensing model. Microsoft s Enterprise Agreement (EA) is a single agreement that allows for on-premises and hosted deployments of Microsoft s server technologies. This allows customers to gradually transition to the cloud at their own pace. Microsoft is transparent with its unplanned downtime. The company provides customers with detailed information about the status of their services with the Microsoft Online Service Health Dashboard. This dashboard delivers information on the current service status, as well as a 35 day history of past service status. KEY WEAKNESSES: Microsoft Office 365 does not offer as much flexibility compared to other Microsoft Hosted Exchange providers. The suite may not be suitable for organizations that have substantial customization requirements. Small organizations may have some concerns about the amount of attention they will receive from Microsoft. These smaller customers may get lost in the crowd to Microsoft s larger customers. Microsoft Office 365 is available in two forms; Standard and Dedicated. Standard offerings are hosted on a multi-tenant server, while Dedicated offerings are hosted in a dedicated server. However, for Microsoft Office 365, Microsoft has increased Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 16

the minimum requirement for dedicated offerings to 30,000 users. In the past, Microsoft Business Productivity Online Suite (BPOS) only required 5,000 users for dedicated offerings. For the first time, Microsoft s 2010 versions of their messaging and collaboration server technologies (Microsoft Exchange Server 2010, Microsoft SharePoint Server 2010, and Microsoft Lync 2010) were designed specifically for the cloud. This should provide a better experience for organizations that subscribe to Microsoft Office 365 compared to Microsoft Business Productivity Online Suite (BPOS). However, several features available from on-premises deployments of Microsoft s server technologies are not supported in hosted environments. For example, Public Folders, are not supported by Microsoft Office 365. In addition, Microsoft Lync Online only supports federation with Windows Live contacts. It currently does not support federation with any other popular Instant Messaging (IM) networks, whereas on-premises deployments of Microsoft Lync do support federation with other IM networks. Microsoft Office 365 is limited mainly to only hosted Microsoft products. Microsoft Office 365 may not be suitable for organizations with Apple Mac OS X and Linux as their desktop operating systems. Microsoft Online Services was meant to function best in a Microsoft Windows environment. Currently, Microsoft Online Services (MOS) does not even offer Microsoft s latest productivity suite for Apple Mac OS X; Microsoft Office 2011 for Mac, as a subscription service. Microsoft Office Professional Plus is a subscription-based service. If an organization were to decide to move off of Microsoft Office 365, it will also lose access to the Microsoft Office Professional Plus suite. Microsoft Office 365 does not support Microsoft Office 2003, so organizations on legacy versions will need to upgrade to the latest version of Microsoft Office. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 17

INTERMEDIA 156 West 56 th Street, Suite 1601 New York, NY 10019 www.intermedia.net Intermedia offers full service email, voice, instant messaging, document management, backup, security, and mobility solutions. This includes 24x7 certified technical support, as well as expert migration from Intermedia s Cloud Concierge team. Administrators can manage and provision all Intermedia services, including mailboxes, mobile devices, and other add-on services via the company s proprietary management platform; HostPilot Control Panel. End-users can also manage their own settings via Intermedia s My Services control panel, which is available within Microsoft Outlook. Service is backed by a 99.999% service level agreement. For email, Intermedia offers Microsoft Hosted Exchange 2010. Organizations have the option of choosing between 25 GB of email storage or unlimited storage. All Microsoft Hosted Exchange services are protected with the company s SpamStopper and Virus Stopper technology, which includes premium anti-virus and anti-spam protection powered by Commtouch, SpamAssassin, ClamAV, as well as Intermedia s own proprietary technology. End-users can access their Microsoft Hosted Exchange inbox from Microsoft Outlook, Microsoft Outlook Web App (OWA), or their mobile device. Intermedia also includes Microsoft Exchange ActiveSync (EAS) standard with its Microsoft Hosted Exchange 2010 service for over-the-air (OTA) synchronization of emails, contacts, and calendars. Additional standard features include remote mobile device management for setting password policies, wiping lost devices, and setting other controls; mail retention policy management; and Intermedia s proprietary Outlook Backup, a way to upload and download backups of each user s Outlook data that is offered in addition to Intermedia s account-wide automated backups. Other optional Microsoft Hosted Exchange services include: UserPilot Active Directory (AD) synchronization tool for a single sign-on experience with Microsoft Hosted Exchange. Compliant Email Archiving Email archiving solution for retention purposes. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 18

Company Disclaimer Feature that adds a company disclaimer to outgoing email messages. MessageMirror Email retention service that creates a copy of all incoming and outgoing messages. Policy-based Encrypted Email Email encryption service that allows users to securely send confidential and sensitive information over email and allows companies to apply standard policies and secure their email communications. User-level Encrypted Email Email encryption service that is applied at the user level, instead of at the administrative level. Hosted BlackBerry Mobile email support for RIM BlackBerry devices. Public Folders Shared access of files and other information within Exchange. Intermedia supports public folders in Microsoft Hosted Exchange 2010. Microsoft SharePoint Foundation 2010 Team collaboration and business social networking platform. Microsoft Office Lync Instant Messaging (IM) Instant messaging (IM) and presence awareness platform. Fax Via Email A Service for receiving faxes and auto-forwarding them to a user s email account. For voice, Intermedia offers Hosted PBX. Hosted PBX is a VoIP-based phone service that can integrate with Microsoft Hosted Exchange. The service includes support for hunt groups, voice menus, direct phone numbers, unique extension and extension dialing, unlimited calling inside the United States and Canada, caller ID, call waiting, call transfer, call forwarding, 3-way calling, find me follow me, and voicemail-to-email. Full unified communications are also optionally available, such as click to call from Microsoft OCS and Outlook address books. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 19

This past year, Intermedia added an online backup service called Intermedia Online Backup to its cloud-based service portfolio. Powered by Mozy, Intermedia Online Backup automatically backs up selected files and folders. In June 2011, Intermedia acquired Zlago, a cloud service provider, which offers hosted desktop, hosted email, hosted PBX/VoIP, and other cloud-based business applications services. FUNCTIONALITY: 8 MARKET SHARE: 2 KEY STRENGTHS: As one of the first providers of Microsoft Hosted Exchange, Intermedia has built up a great deal of experience managing Microsoft Hosted Exchange, as well as migrating users to it. Intermedia has a data center infrastructure that features Dell, EMC, and Cisco hardware and multiple connections to Tier 1 Internet providers. This infrastructure allows Intermedia to offer a 99.999% financially backed uptime SLA for its Microsoft Hosted Exchange services. Instead of relying on third-party management and provisioning platforms, Intermedia has developed its own proprietary platform; HostPilot Control Panel. This provides Intermedia with more control over what features and functionality it can offer its customers. Intermedia was the first service provider to offer Microsoft Exchange Server 2010, which has provided the company with a head start in working with the new platform. Today, it is still one of the few service providers that offers Microsoft Hosted Exchange 2010. Microsoft s own Office 365 cloud based service based on Microsoft Exchange Server 2010, was not fully released from beta until late June 2011. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 20

Intermedia offers the Enterprise version of Microsoft Exchange Server 2010, not the Hosting Mode Microsoft offers as part of Microsoft Exchange Server 2010 Service Pack 1. This allows Intermedia to offer the full Microsoft Exchange Server 2010 experience. This is particularly noteworthy since the Hosting Mode Microsoft offers in Exchange Server 2010 Service Pack 1 is missing some key features, such as public folders. A 50 MB Hosted Microsoft SharePoint Foundations 2010 site is provided free of charge for all organizations that purchase one of the company s Professional, Enterprise and Enterprise Professional bundles. Other Microsoft Hosted Exchange providers do not include a free SharePoint site with the purchase of Microsoft Hosted Exchange. Intermedia assigns a personal Cloud Concierge team for any new customer s first 60 days. The Cloud Concierge team is available 24x7 and is dedicated to help new customers migrate their email, contacts, calendars and other resources to their new Microsoft Hosted Exchange services, as well as provide other technical support. In addition, Intermedia offers numerous online wizards and tools to help new customers migrate. Intermedia offers a broad range of cloud-based services, which include hosted Microsoft SharePoint, Microsoft Lync, hosted VoIP, email encryption, email archiving, and others. KEY WEAKNESSES: Compared to other Microsoft Hosted Exchange providers, Intermedia generally charges more per mailbox than some of its competitors. Although Intermedia has offered dedicated Exchange services in the past, the company no longer promotes this, and instead focuses primarily on offering multi-tenant Hosted Exchange services. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 21

USA.NET, A PERIMETER E-SECURITY BRAND 7900 E. Union Avenue Suite 800 Denver, CO 90237 www.usa.net/perimeter USA.NET, a brand of Perimeter E-Security, is a security software as a service (SaaS) provider that also offers email and collaboration services. All services guarantee 99.999% availability, are SAS 70 Type II audited, and are backed by 24x7x365 Tier I, II, and III support. Each account comes with a dedicated technical account manager (TAM) that helps serve as a private IT consultant. All services can be managed under a web-based administrative console. USA.NET offers the following email services: SaaS Email Security USA.NET s email security service comes with SPAM filtering, anti-virus and anti-malware protection. Content filtering is also included in SaaS Email Security, which allows or blocks incoming and outgoing email messages based on predefined rules. SaaS Secure Hosted Email USA.NET offers Microsoft Exchange Hosting for their SaaS Secure Hosted Email solution. Based on Microsoft Exchange Server 2010, Microsoft Exchange Hosting is a secure email and collaboration platform for accessing email, calendars, contacts and more from multiple locations or various devices. End-users can access their email accounts using Microsoft Outlook or Microsoft Outlook Web Access (OWA). All of USA.NET s Microsoft Hosted Exchange mailboxes are protected using a multiple-layered approach featuring technology from Cloudmark, Symantec, and Trend Micro. SaaS Email Encryption An email encryption service that allows users to securely send sensitive data over email. Organizations can also enforce email encryption policies to ensure confidential information will be sent securely over email. SaaS Email Encryption is in compliance with GLBA, HIPAA, California Disclosure Law, and FFIEC guidelines. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 22

SaaS Business Continuity Services A continuity service that securely stores all inbound and outbound email messages off site in USA.NET s data centers in case of any downtime. When downtime does occur, users can access their emails using a webmail interface. Archive retention periods can range from 30 days to multiple years, depending on the customers needs. SaaS Archiving and Compliance This service archives all incoming and outgoing email messages to help organizations meet government rules and regulations, as well as ediscovery requests. SaaS Archiving and Compliance provides the tools necessary for customers to achieve compliance with SEC, FINRA, HIPAA, SOX, and the Federal Rules for Civil Procedures (FRCP). SaaS Secure Collaboration Based on Microsoft Office Communications Server (OCS) 2007, SaaS Secure Collaboration is a secure instant messaging (IM) and presence awareness platform. SaaS Secure Collaboration also supports audio and video chat, as well as desktop sharing and PC-to-PC file transfers. Microsoft Hosted SharePoint - Based on Microsoft SharePoint Foundations 2010, it is a collaboration platform that allows teams to create workspaces where members can interact, coordinate calendars, track tasks, and share documents. Hosted Mobile Messaging Provides mobile support for both Microsoft Exchange Hosting and Commercial Messaging Service (CMS). It supports Microsoft Exchange ActiveSync (EAS) and BlackBerry Enterprise Server (BES). Email Content Filtering Allows organizations to create policies that ensure only approved email messages are sent to recipients. Email Content Filtering is in compliance with government rules and regulations such as GLBA, HIPPA, and SOX. Organizations can also create their own policies for compliance with their own internal corporate policies. USA.NET also provides dedicated environments for organizations with highly regulated or complex requirements such as financial institutions, multi-national enterprises and government agencies. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 23

FUNCTIONALITY: 9 MARKET SHARE: 3 KEY STRENGTHS: USA.NET guarantees 99.999% availability for all their services. In addition, the company also includes 100% SLAs for email delivery and 100% SLA virus-free guarantees. USA.NET places more of an emphasis on security and compliance compared to other service providers on the market. USA.NET s parent company Perimeter esecurity provides the company with greater credibility with organizations that require secure hosted services. USA.NET is one of the few service providers on the market that primarily focuses on the mid-market. This has allowed the company to build up expertise in deploying highly scalable and customizable Microsoft Hosted Exchange solutions. All of USA.NET services are backed by 24x7x265 Tier I, II, and III support. This guarantees that there is someone there for the customer if any help is needed. In addition, each Microsoft Hosted Exchange customer receives a free dedicated technical account manager (TAM), who serves as a private IT consultant. KEY WEAKNESSES: In the past, USA.NET was sometimes perceived as slower than its competitors in rolling out new features and functionality. However, the company has been addressing this and is increasingly picking up the pace of new releases. USA.NET currently offers Active Directory (AD) password synchronization as a standard service for all customers. However, more advance directory synchronization and directory federation services are only available to customers through its professional services team as a custom development. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 24

APPTIX 13461 Sunrise Valley Drive, Ste 300 Herndon, VA 20171 www.apptix.com Apptix offers enterprise-class hosted communications and collaboration services. Apptix s services are hosted in Tier IV, SAS 70 Type II audited, and geographically dispersed data centers. In addition, the company s services are delivered on an advanced infrastructure built with 64-bit HP servers, Cisco switches, and routers anchored to EMC SAN disk arrays. The company provides 24/7 fully US-based customer support, as well as a dedicated account representative to manage the customer on-boarding process. Administrators can manage and provision all of Apptix s services from Apptix s Control Panel, which also includes a robust Active Directory (AD) sync tool. Apptix offers the following hosted services to customers: Microsoft Hosted Exchange A comprehensive email and collaboration solution, based on Microsoft Exchange Server 2010, which supports POP, IMAP, and MAPI protocols. Multi-layered anti-virus and spam filtering protection powered by Symantec MessageLabs is included with each Microsoft Hosted Exchange mailbox. Apptix offers mailboxes that range in size from 5 GB to 25 GB, with an option for unlimited email storage. Microsoft Hosted Exchange can also be accessed from Microsoft Outlook or Microsoft Outlook Web Apps (OWA). Each Microsoft Hosted Exchange account also comes with 1 GB of storage for online backup through a partnership with Mozy. Additional Microsoft Hosted Exchange related services offered by Apptix include: o Apptix Secure Mail A comprehensive email encryption solution for sending sensitive information over email. o Apptix Advance Exchange Compliance & Archiving Services An email archiving service powered by Global Relay for the retention of emails. Apptix Advance Exchange Compliance & Archiving Services also supports ediscovery, monitoring, and enforcement of company policies and procedures. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 25

o Mobile Email A mobile email solution for over-the-air (OTA) synchronization of emails, calendars and contacts. Mobile Email supports BlackBerry Enterprise Server (BES) for BlackBerry devices, as well as Microsoft ActiveSync for Apple iphone and ipad, Palm, Android, and Windows Mobile-based devices. o Outlook Voice Access (OVA) Email inbox access from an analog, digital or cellular phone. Hosted Microsoft SharePoint 2010 An enterprise content management (ECM) and team collaboration platform that offers features for document libraries, workspaces, discussion boards, surveys, as well as shared calendars and contacts. Apptix offers all three versions of Microsoft SharePoint 2010, including Microsoft SharePoint Foundations, Microsoft SharePoint Server, and Microsoft SharePoint Enterprise in shared or dedicated environments. To help new customers get started on Hosted Microsoft SharePoint, Apptix includes an extensive library of online tutorials, 40 industry specific templates, and numerous Web Parts from Bamboo for adding functionality to SharePoint sites. Apptix also provides Microsoft SharePoint Professional Services for design, initialization, configuration, and customization for an organization s unique needs and requirements. Apptix Web Conferencing and Secure Instant Messaging Based on Microsoft Office Communications Server (OCS) 2007 R2, Apptix Web Conferencing and Secure Instant Messaging offers web, audio and video conferencing, as well as desktop and application sharing. In addition, this service includes support for secure instant messaging (IM) and presence awareness. Apptix Web Conferencing and Secure Instant Messaging can be integrated with Apptix s Microsoft Hosted Exchange service. Apptix VoIP A hosted VoIP service from Apptix that provides standard telephony features, such as voicemail, caller ID, extension dialing, find me/follow me, call forwarding, and music on hold. The service also offers advanced features such as auto attendant, multi-office support, and voicemail-to-email. Apptix Unified Communications A hosted unified communications service, which combines multiple forms of communications into one infrastructure. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 26

Apptix Unified Communications comprises Microsoft Hosted Exchange for email, Hosted Microsoft Office Communications Server (OCS) R2 for instant messaging (IM) and web conferencing, Hosted Microsoft SharePoint for collaboration, and Apptix Hosted VoIP for voice services. In addition to these services, Apptix also offers Website Hosting, Domain Registration, Virtual Private Servers (VPS), as well as Online Backup through a partnership with EMC. FUNCTIONALITY: 7 MARKET SHARE: 4 KEY STRENGTHS: All Apptix services are hosted in Tier IV, SAS 70 Type II audited, and geographically dispersed data centers. Apptix s services are delivered on an advanced infrastructure built with 64-bit HP servers, Cisco switches and routers anchored to EMC SAN disk arrays. All of this helps Apptix deliver a 100% scheduled uptime SLA. Apptix uses Parallel s provisioning and management platform to deploy the Enterprise version of Microsoft Exchange Server 2010, instead of the Hosting Mode which comes with Microsoft Exchange Server 2010 Service Pack 1. With this version, Apptix can offer the full Microsoft Exchange Server 2010 experience, while Microsoft s Hosting Mode is missing key features, such as Public Folders. Apptix offers a powerful Active Directory (AD) Sync tool that helps simplify the management of all Apptix services and end-users. This is essential to mid-market organizations, since many have already invested in Active Directory (AD). Apptix is one of the few providers that offer Outlook Voice Access (OVA) for their Microsoft Hosted Exchange solutions. This feature allows individuals to access their email inbox from an analog, digital or cellular phone. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 27

Apptix is a leading Hosted Microsoft SharePoint provider. The company includes an extensive library of online tutorials, 40 industry specific templates, and numerous Web Parts for adding additional functions to SharePoint sites. Last year, Apptix released a Hosted Unified Communications (UC) platform built on Microsoft Hosted Exchange, Hosted Microsoft Office Communications Server (OCS) and its Hosted VoIP service. Few other Microsoft Hosted Exchange providers can offer a complete Microsoft-based Hosted Unified Communications service to their customers. KEY WEAKNESSES: Microsoft Exchange ActiveSync (EAS) and Hosted Microsoft SharePoint are not included for free with any of Apptix s Microsoft Hosted Exchange plans. Many competitors offer both these services for free as part of their standard email plans. Although Apptix has offered dedicated Microsoft Hosted Exchange in the past, the company prefers to host most of its customers on multi-tenant deployments of Microsoft Hosted Exchange. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 28

TRAIL BLAZERS APPRIVER 1101 Gulf Breeze Parkway Suite 200 Gulf Breeze, FL 32561 www.appriver.com In the hosted business email market, AppRiver offers Secure Exchange Hosting. Based on Microsoft Exchange Server 2010, Secure Exchange Hosting is a comprehensive email and collaboration package that comes with unlimited email storage and is embedded with AppRiver s proprietary spam filtering and virus protection technology, SecureTide. AppRiver s Secure Exchange Hosting solution also features a unique IP acceleration technology from Akamai for improved network connection. This allows for faster download speeds, as well as greater mobility connectivity for optimized email performance. For accessing emails and collaboration services, AppRiver provides end-users with a choice of Microsoft Outlook 2007, Microsoft Outlook 2010, or Microsoft Outlook for Mac 2011. End-users can also access their email and collaboration services via Microsoft Outlook Web App (OWA). For mobility, AppRiver includes Microsoft Exchange ActiveSync (EAS) for over-the-air (OTA) synchronization of emails, contacts, and calendars with Apple ios, Android, and Windows Mobile based devices. Other optional services from AppRiver include: BlackBerry Enterprise Server (BES) for over-the-air (OTA) synchronization of emails, contacts and calendars with RIM BlackBerry devices. Global Relay Message Archiver for hosted email archiving and compliance. AppRiver is also planning to release hosted versions of Microsoft SharePoint Foundations 2010 and Microsoft Lync 2010 in the near future. AppRiver s Secure Exchange Hosting can integrate with AppRiver s proprietary cloudbased security services: Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 29

CipherPost email encryption for securely sending confidential and sensitive information. Message Sniffer email scanning engine that detects email malware, such as spam and viruses. Digital Disaster Recovery Program a plan to ensure business continuity during unplanned downtime. SecureSurf a new web security service from AppRiver that protects an organization s network from malware and viruses. All AppRiver s services, including AppRiver s Secure Exchange Hosting and SecureTide solutions, can be managed from AppRiver s Customer Portal. In addition, all AppRiver services are backed by the company s Phenomenal Care service, which provides 24x7 hour support by a US-based team of professionals. In addition to these services, AppRiver is also a syndicated partner for Microsoft Office 365. As a syndicated partner, Microsoft will host Microsoft Office 365, while AppRiver supports it with their Phenomenal Care service. FUNCTIONALITY: 6 MARKET SHARE: 7 KEY STRENGTHS: AppRiver offers unlimited mailbox storage with its base plan. Most Microsoft Hosted Exchange service providers do not offer unlimited mailbox storage. AppRiver implements technologies from Akamai to help speed up network connections, which makes AppRiver s Microsoft Hosted Exchange services perform comparably to an on-premises Microsoft Exchange Server solution. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 30

AppRiver has developed its own proprietary provisioning platform, AppRiver Customer Portal, which allows organizations to easily manage their AppRiver email security settings, in addition to their AppRiver Microsoft Hosted Exchange service. AppRiver is also a Microsoft partner for Microsoft Office 365. As a partner, AppRiver can bundle Microsoft Exchange Online, Microsoft SharePoint Online and Microsoft Lync Online to their customers. AppRiver has its roots in hosted security. The company places a strong emphasis on the security of its Microsoft Hosted Exchange services. AppRiver s Microsoft Hosted Exchange services are wrapped with AppRiver s proprietary email security services. Secure Microsoft Exchange Hosting comes with 24x7, US-based phone and email support. KEY WEAKNESSES: AppRiver s Office 365 services currently cannot be managed under AppRiver s provisioning and management interface. This means that IT administrators that subscribe to Office 365 and any other AppRiver services will have to manage both services under multiple control panels. However, AppRiver does have plans to integrate both management consoles by the end of 2011. AppRiver does not offer a lot of flexibility for organizations that have more demanding requirements for their email environment. The company cannot offer services yet, such as Active Directory (AD) integration, for its own internally developed Microsoft Hosted Exchange service. However, AppRiver does offer Active Directory (AD) synchronization with Microsoft Office 365 (through a tool that Microsoft has created for their customers). AppRiver does not currently offer Microsoft Hosted Exchange related services, such as Microsoft SharePoint or Microsoft Office Communications Server (OCS). Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 31

However, the company has plans to support Microsoft SharePoint Foundations 2010 and Microsoft Lync 2010 later in 2011. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 32

CERYX 65 St. Clair Avenue East, 7 th Floor, Toronto, Ontario Canada M4T 2Y3 www.ceryx.com All of Ceryx s enterprise-grade solutions are managed via Cloud Control, a proprietary developed SaaS platform, which extends enterprises ability to leverage cloud-based technologies beyond those of public cloud or on-premise solutions. Cloud Control also lowers support costs by enabling delegated administration without sacrificing compliance. Through its Cloud Control platform, Ceryx can deliver Microsoft Exchange Server, Microsoft SharePoint, Microsoft Lync, and related technologies on a Private Dedicated Cloud, Private Managed Cloud, and Enterprise Multi-Tenant environment. All of Ceryx s offerings include sophisticated security and multi-factor anti-spam, anti-virus scanning and gateway content filtering and encryption. Private Dedicated Cloud This service delivers Microsoft Exchange Server 2010, Lync 2010 and SharePoint 2010 on a private dedicated cloud that focuses on enterprise security, reliability, flexibility and cost-effectiveness. Ceryx can also adapt the solution for enterprises with sophisticated demands for security, compliance, integration and data residency. Ceryx s Private Dedicated Cloud is maintained in a secure, dedicated IT environment managed by Ceryx. In addition, Ceryx s Private Dedicated Cloud can also be integrated into the customer s IT environment providing native single-sign-on capabilities. Private Managed Cloud - Ceryx s Private Managed Cloud is suited for enterprises that have an in-house infrastructure for Microsoft Exchange Server, Microsoft SharePoint and/or Microsoft Lync, but need to increase their operational efficiencies and reduce costs. Enterprise Multi-Tenant - Ceryx s Enterprise Multi-Tenant solutions are targeted at organizations with fewer than 3,000 employees, and provide many of the same benefits as a private dedicated cloud solution. Using Ceryx s Cloud Control, Ceryx provides tailored configurations to adapt to the evolving needs of Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 33

enterprise clients. Other services offered by Ceryx include: Archiving and Compliance - Ceryx s archiving and compliance solutions integrate with any number of complementary technologies. This includes archiving products such as EMC SourceOne, Symantec Enterprise Vault, and Global Relay. It also includes compliance products such as Echoworx for gateway encryption, and Exclaimer for disclaimer policies. Mobility - Ceryx offers push email, over-the-air (OTA) synchronization of calendars and contacts, as well as provisioning of mobile devices for Apple ios, BlackBerry OS, Google Android, Microsoft Windows Mobile, and Symbian OS mobile devices. Unified Messaging - Ceryx s solutions can integrate with widely used telephony platforms, such as Cisco Unity and Avaya s solutions. FUNCTIONALITY: 9 MARKET SHARE: 8 KEY STRENGTHS: Ceryx has built their own proprietary provisioning platform. This allows Ceryx to provide a multi-tenant platform to customers, and unlock native features in Microsoft Exchange Server 2010 that are not available via the Hosting Mode in Microsoft Exchange Server Service Pack 1. Ceryx has a strong development team that can handle complex requirements for customers. This allows the company to provide greater integration between their Microsoft Hosted Exchange platform and their customers business critical applications. For example, the Ceryx development team can support integration with third party, custom or on-premise products such as CRM, HR applications, ERP applications, archiving, document management, portal integration, PBX Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 34

integration, as well as support for non-microsoft based UC systems. The company can also support features and functionality beyond the standard offering (i.e. public folders, advanced password management, advanced security, advanced reporting, organizational groups, etc.) Furthermore, Ceryx can also support special operation requests such as geographic requirements, custom data backups and schedules, data restores, monitoring integration, etc. Ceryx has a solid development team that can help new customers with migration or co-existence services from not only Microsoft Exchange Server, but IBM Lotus Notes/Domino, Google Apps, Novell GroupWise, as well as open-source platforms. The company s team of Technical Account Managers (TAM) that serve as a single point of contact to help customers with any issues with Ceryx s Microsoft Hosted Exchange services. KEY WEAKNESSES: Ceryx primarily targets the mid-market. SOHOs and SMBs may want to look elsewhere for a Microsoft Hosted Exchange solution. Ceryx does not offer pricing on their website, which may disappoint potential customers that are trying to get an idea of price points for their service. Although Ceryx targets the mid-market, the company has a limited portfolio of hosted services. Compared to other companies targeting the mid-market, Ceryx does not yet have a very broad range of services. Customers looking to subscribe to several services in addition to email and collaboration, such as desktop security, network management, server management, and CRM packages may be disappointed. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 35

SPECIALISTS SHERWEB 740 Galt Ouest, Suite 10 Sherbrooke (Quebec) Canada, J1H 1Z3 www.sherweb.com SherWeb s Microsoft Hosted Exchange is based on Microsoft Exchange Server 2010, and comes with advanced anti- virus and spam filtering protection powered by a combination of technologies from MailChannels and Cloudmark. Each Hosted Exchange account comes with a 100 MB Microsoft SharePoint site. SherWeb also provides optional licenses for Microsoft Outlook 2010 or Microsoft Entourage for Mac OS. For mobility, clients get to choose between ActiveSync (EAS) or BlackBerry Enterprise Server (BES). Other additional features include Active Directory (AD) Sync, company email disclaimer, custom transport rules, mail-enabled public folders, and email redirection. SherWeb s range of products comprises a number of optional email related services for both packages: SharePoint Foundation 2010 Hosting for document management and team collaboration. Hosted Microsoft Dynamics CRM 4.0, a customer relations management (CRM) solution that allows users to store information on customer service, leads, marketing, and sales. Archiving and Compliance for the retention and back up of emails. Hosted Microsoft Office Communications Server 2007 R2 that provides enterprise instant messaging, presence, and web conference capabilities. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 36

Many of SherWeb s services are available for resale through its affiliate and reseller programs. FUNCTIONALITY: 5 MARKET SHARE: 6 KEY STRENGTHS: SherWeb has developed its own internal provisioning platform that allowed the company to be one of the first hosting providers to offer Microsoft Hosted Exchange 2010. This proprietary provisioning platform also gives SherWeb greater control over all the hosted services it offers. SherWeb is currently offering the Enterprise version of Microsoft Exchange Server 2010, instead of the Hosting Mode available as part of Microsoft Exchange Server 2010 Service Pack 1. The Enterprise version of Microsoft Exchange Server 2010 includes many features not available in the Hosting Mode such as Public Folders. Each Microsoft Hosted Exchange account comes with a free 100 MB Microsoft SharePoint site. Many Microsoft Hosted Exchange providers do not offer this. SherWeb offers a variety of complementary Microsoft Hosted Exchange services, such as Microsoft SharePoint 2010, Microsoft Office Communications Server (OCS), and Microsoft Dynamics CRM. SherWeb offers ADSync, a tool for Active Directory (AD) synchronization. This allows administrators to easily manage and provision their organization s users. KEY WEAKNESSES: SherWeb has only completed its SAS 70 Type I audit. However, most of its competitors have already completed their SAS 70 Type II audits. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 37

Although SherWeb has had some Dedicated Microsoft Hosted Exchange customers in the past, the company does not actively market this option. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 38

MINDSHIFT 309 Waverley Oaks Road Suite 301 Waltham, MA 02452 www.mindshift.com mindshift offers Microsoft Hosted Exchange and other SaaS services directly to SMBs via 123Together.com and also offers these services through its reseller channel to partners as a private label offering. mindshift s 123Together.com brand offers Microsoft Hosted Exchange 2010 and 2007. Other services offered by 123Together.com include: Hosted Microsoft SharePoint Foundation 2010 for document management and team collaboration. Email Archiving for e-discovery and email retention to meet government regulations. Premium Spam Filtering and Business Continuity Services powered by McAfee. Microsoft Exchange ActiveSync (EAS) and BlackBerry Enterprise Server (BES) for over-the-air synchronization of emails, contacts, and calendars with mobile devices. Desktop Data Backup for safeguarding business documents from accidental loss, corruption or theft. cloudshift Server: On-Demand to build virtual servers in the cloud. Hosted Microsoft Dynamics CRM (Customer Relations Management) for contact management. mindshift offers private-label and white label SaaS services, including Microsoft Hosted Exchange, via groupspark. groupspark uses a unique Private Label Application Delivery (PLAD) platform designed for resellers, who can brand the service as their own with their logo, URL and look-and-feel. This provides a complete private label experience. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 39

FUNCTIONALITY: 4 MARKET SHARE: 8 KEY STRENGTHS: mindshift offers a broad breath of IT services, which includes services for Virtualization, Security, Storage, Legal Applications, VoIP, Hosting, CRM, as well as Messaging and Collaboration. mindshift offers multiple hosting options for Microsoft Hosted Exchange, which includes multi-tenant, dedicated and managed. groupspark uses a unique Private Label Application Delivery (PLAD) platform designed for resellers. This delivery platform allows resellers to fully brand the service with their logo as well as look-and-feel 123Together includes a free 50 MB Microsoft SharePoint site with each Microsoft Hosted Exchange account. 123Together offers hosted services for Microsoft Dynamics CRM. Many Microsoft Hosted Exchange providers do not currently offer this service. KEY WEAKNESSES: 123Together s data centers have not completed SAS 70 Type II audits. mindshift claims this will change by the end of 2011. However, all other mindshift data centers are SAS 70 Type II certified. The Microsoft Hosted Exchange service offered by 123Together and groupspark is based on the Hosting Mode in Microsoft Exchange Server 2010 Service Pack 1, which is missing key features such as Public Folders. Most of their competitors offer the Enterprise Version of Microsoft Exchange Server 2010. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 40

123Together and groupspark do not currently offer Microsoft Office Communications Server (OCS). Most of their competitors have already been offering OCS for over a year. Premium email security protection and Microsoft Exchange ActiveSync (EAS) come at an additional cost. Most of 123Together s competitors include these services in their basic Microsoft Hosted Exchange package. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 41

NAVISITE 400 Minuteman Road Andover, MA 01810 www.navisite.com NaviSite offers hosted email and collaboration services as part of its Managed Messaging Application services portfolio. All Managed Messaging Application are hosted in SAS 70 Type II certified data centers, with built-in disaster recovery (DR) and business continuity capabilities. All Managed Messaging Applications are also deployed on the NaviCloud Managed Cloud Services (MCS) Platform, a virtualized infrastructure powered by Cisco System and VMware technologies. This virtualized infrastructure allows NaviSite to offer virtualized dedicated versions of both Microsoft Exchange Server at a price point that is comparable to multi-tenant versions of Microsoft Hosted Exchange. NaviSite offers up to a 99.99% SLA for all their Managed Messaging Applications. Microsoft-based email and collaboration services from NaviSite include: Microsoft Hosted Exchange NaviSite s Microsoft Hosted Exchange service provides email and collaboration functionality from both the desktop and the web browser. All mailboxes come with a free copy of either Microsoft Outlook 2007 for Microsoft Windows operating systems or Microsoft Entourage 2008 for Apple Mac OS. In addition, individuals can also access their emails using Outlook Web App (OWA). NaviSite leverages Postini for anti-virus and spam filtering protection, as well as Trend Micro technology for gateway and server-side antivirus protection. Each Microsoft Hosted Exchange mailbox comes with a Hosted Microsoft SharePoint Foundations 2010 site that includes 1 GB of storage. Microsoft SharePoint Based on Microsoft SharePoint Foundations 2010, NaviSite s Microsoft SharePoint services provide organizations with a team collaboration platform that allows users to create workspaces for coordinating schedules, document management, and interacting with one another. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 42

Optional services for NaviSite s email and collaboration services include: Email Archiving For email archiving, NaviSite offers Mimecast UEM or Global Relay Archiving. Mobility For mobile email, NaviSite offers BlackBerry Enterprise Server (BES) and Microsoft Exchange ActiveSync (EAS). NaviSite also offers dedicated Microsoft Exchange Server solutions for organizations that require more security, uptime, and customization. The company can build dedicated environments with additional options such as single sign-on, server clustering, geographic redundancy, and more. FUNCTIONALITY: 5 MARKET SHARE: 9 KEY STRENGTHS: NaviSite offers two flavors of their email solutions, dedicated and multi-tenant. Unlike other service providers, NaviSite has no minimum seat count for dedicated hosting environments. NaviSite s NaviCloud Platform is a robust proprietary platform, built with enterprise components from Cisco and VMware, which allows the company to deploy virtualized dedicated Microsoft Hosted Exchange solutions at a price that is comparable to a shared, multi-tenant Microsoft Hosted Exchange solution. The NaviCloud Platform allows the company to offer supportable 99.99% SLAs for both of their hosted messaging solutions. Each Microsoft Hosted Exchange account comes with a free Hosted Windows SharePoint Services (WSS) 3.0 site with 1 GB of storage. NaviSite serves the mid-market, and has a strong development team that has the ability to build and support complex environments for organizations with custom Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 43

requirements. For example, NaviSite can offer seamless integration with active directory (AD), as well as unified communications (UC) services. In addition to hosted email and collaboration solutions, NaviSite offers a comprehensive portfolio of IT and managed hosting services. This includes business applications for Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) from Oracle, Kronos, Lawson, Microsoft, and IBM. KEY WEAKNESSES: NaviSite primarily targets the mid-market. This may turn off smaller organizations, which may be afraid that they will get lost in the crowd. In addition, NaviSite s core business is their Dedicated Messaging services, not their Hosted Messaging services. This may also turn off organizations that just want an off-the-shelf solution. Currently only NaviSite s Dedicated Exchange solutions are based on the latest Microsoft Exchange Server 2010 platform. NaviSite s multi-tenant Microsoft Hosted Exchange solutions are still running on Microsoft Exchange Server 2007. NaviSite does not plan on offering multi-tenant versions of Microsoft Hosted Exchange Server 2010 until end-of-year 2011. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 44

GO DADDY 14455 N. Hayden Rd. Ste. 226 Scottsdale, AZ 85260 www.godaddy.com Go Daddy offers Microsoft Hosted Exchange, an enterprise-grade email solution based on Microsoft Exchange Server 2010. The company ensures 99.9% availability and redundancy on all their Microsoft Hosted Exchange plans. All mailboxes are protected with spam filtering and email virus protection. Each mailbox comes with a license to Microsoft Outlook 2010 or Microsoft Outlook 2011 for Apple Mac OS, as well as Microsoft Exchange ActiveSync (EAS) for the synchronization of emails, contacts, and calendars. Go Daddy s Microsoft Hosted Exchange plan is available in two plans: Individual Plan: An individual Microsoft Hosted Exchange mailbox that comes with 1 GB of email storage. Group Plan: A group Microsoft Hosted Exchange package that starts off with 3 mailboxes, each with 4 GB of email storage. A Microsoft SharePoint 2010 site is also included with the Group Plan for team collaboration and document management. Go Daddy also offers optional services for BlackBerry Enterprise Server (BES). FUNCTIONALITY: 4 MARKET SHARE: 10 KEY STRENGTHS: Go Daddy develops most of their services internally, which helps to reduce the overall costs to its subscribers. Go Daddy has built its own proprietary Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 45

provisioning platform, which makes it easier for customers to manage all their Go Daddy services in one location. Each Group Plan account comes with a free Microsoft SharePoint site. Many Microsoft Hosted Exchange providers do not offer this option. Go Daddy offers BlackBerry Enterprise Server (BES) for $2.95 per user/month. Most Microsoft Hosted Exchange providers offer this service for at least $9.95 per user/month. KEY WEAKNESSES: Go Daddy primarily works with individual subscribers and very small organizations. The company s Microsoft Hosted Exchange service is very basic, and may not be suitable for organizations beyond a certain number of mailboxes. Go Daddy does not currently offer any Hosted Email Archiving and Email Encryption services for its Microsoft Hosted Exchange solution. Go Daddy does not include Microsoft Office Communications Server (OCS), a service that most leading Microsoft Hosted Exchange providers currently offer. Go Daddy does not offer Dedicated Microsoft Hosted Exchange services. This may disappoint customers that have more complex requirements. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 46

MATURE PLAYERS RACKSPACE 9725 Datapoint Drive, Suite 100 San Antonio, TX 78229 www.rackspace.com Rackspace offers cloud-based services via its Email & Apps division. The company currently offers services for email, collaboration, file sharing, and online backup. All services can be managed using the Rackspace Control Panel, including spam filtering, email archiving, domain management, apps management, and other administrative functions. Email Hosting For Email Hosting, Rackspace offers Microsoft Hosted Exchange, an enterprise-grade email and collaboration solution based on Microsoft Exchange Server 2007 that comes with 2 GB of email storage. Rackspace allows sent attachments of up to 50 MB. All Microsoft Hosted Exchange mailboxes are protected with multiple layers of spam-filtering and antivirus technology powered by Cloudmark, ARM Research Labs, and ClamAV. Spam and virus definitions are updated near real-time throughout the day to block threats as soon as possible and feedback loops are available to ensure accuracy. End-users can access their emails on the desktop using Microsoft Outlook or Microsoft Outlook Web Access (OWA). Rackspace offers Microsoft Exchange ActiveSync (EAS) support for Android, Apple ios, and Windows Mobile devices. BlackBerry Enterprise Server (BES) is also available for BlackBerry mobile devices. In addition, each organization account comes with a free 250 MB Windows SharePoint Services (WSS) site for team collaboration. In addition, Rackspace offers its own proprietary email archiving solution called Email Archiving for the retention of an unlimited amount of emails. Rackspace also partners with Sonian and Global Relay for archiving services. File Sharing For file sharing, Rackspace offers Microsoft SharePoint. o Microsoft SharePoint Based on Windows SharePoint Services (WSS), Rackspace s Microsoft SharePoint solution integrates with Microsoft Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 47

Office, and provides organizations with tools for document management, team collaboration, and workflows. Online Backup For online backup, Rackspace offers Rackspace Cloud Drive and Rackspace Server Backup. o Rackspace Cloud Drive Rackspace Cloud Drive is a secure online file storage service for backing-up and sharing files. Other capabilities of Rackspace Cloud Drive include automatic backups, file restore, file synchronization, and anywhere access via a web-based interface for computers and mobile devices. o Rackspace Server Backup Rackspace Server Backup is a secure online storage service that can automatically backup both Windows-based and Linux-based servers. Rackspace Server Backup also supports data restore and remote management of backup data. FUNCTIONALITY: 3 MARKET SHARE: 5 KEY STRENGTHS: Rackspace offers a 100% Uptime Guarantee for their managed and hosted solutions. Rackspace has a strong reputation in the industry for its customer service. A dedicated Transition Team representative helps new customers migrate their service offerings. In addition, each customer is assigned a dedicated IT support team of experts that is always available 24x7x365, called the Fanatical Support Team. Rackspace Unified Control Panel allows administrators to manage Microsoft Hosted Exchange, spam filtering, archiving, domain management, and other administrative functions all in one location. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 48

Rackspace offers multiple hosted deployment options; Software as a Service (SaaS), Dedicated, Managed, and Co-location. This allows customers to choose from a variety of options that best suit their needs. Each customer account comes with a 250 MB Hosted Windows SharePoint Services (WSS) site. KEY WEAKNESSES: Compared to other Microsoft Hosted Exchange providers, Rackspace has been slow to add new services. Rackspace is still on Microsoft Hosted Exchange 2007. Many of the company s key competitors are already on Microsoft Exchange Server 2010. Rackspace does not currently offer a hosted version of Microsoft Office Communications Server (OCS). Many other Microsoft Hosted Exchange providers have been offering this service for years now. This may disappoint organizations also looking to deploy a secure instant messaging (IM) and presence platform for their organization. Compared to other Microsoft Hosted Exchange providers, Rackspace does not offer the most cost-effective Microsoft Hosted Exchange solution. For example, Microsoft Exchange ActiveSync (EAS) is not included for free with any of Rackspace s Microsoft Hosted Exchange plans. Many competing service providers, such as Intermedia and NaviSite, offer Microsoft Exchange ActiveSync (EAS) for free as part of their standard messaging plans. Rackspace does not offer an Active Directory (AD) sync tool yet, although it is on its development roadmap. This is a major problem for mid-size and larger organizations have already invested in Active Directory (AD). Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 49

THE RADICATI GROUP, INC. http://www.radicati.com The Radicati Group, Inc. is a leading Market Research Firm specializing in emerging IT technologies. The company provides detailed market size, installed base and forecast information on a worldwide basis, as well as detailed country breakouts, in all areas of: Email Security Instant Messaging Unified Communications Identity Management Web Technologies The company assists vendors to define their strategic product and business direction. It also assists corporate organizations in selecting the right products and technologies to support their business needs. Our market research and industry analysis takes a global perspective, providing clients with valuable information necessary to compete on a global basis. We are an international firm with clients throughout the US, Europe and the Pacific Rim. The Radicati Group, Inc. was founded in 1993, and is headquartered in Palo Alto, CA, with offices in London, UK. Consulting Services: The Radicati Group, Inc. provides the following Consulting Services: Management Consulting Whitepapers Strategic Business Planning Product Selection Advice TCO/ROI Analysis Multi-Client Studies To learn more about our reports and services, please visit our website at www.radicati.com. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 50

MARKET RESEARCH PUBLICATIONS The Radicati Group, Inc. develops in-depth market analysis studies covering market size, installed base, industry trends and competition. Current and upcoming publications include: Currently Released: Title Released Price* Hosted Email Market, 2011-2015 Aug. 2011 $3,000.00 Email Archiving Market, 2011-2015 June 2011 $3,000.00 Cloud Security Market, 2011-2015 June 2011 $3,000.00 Email Statistics Report, 2011-2015 May 2011 $3,000.00 IBM Lotus Notes/Domino Market Analysis, 2011-2015 Mar. 2011 $3,000.00 Social Networking Market, 2011-2015 Mar. 2011 $3,000.00 Corporate Web Security Market, 2011-2015 Mar. 2011 $3,000.00 Microsoft SharePoint Market Analysis, 2011-2015 Mar. 2011 $3,000.00 Microsoft Exchange Server and Outlook Market Analysis, 2011-2015 Mar. 2011 $3,000.00 Google Email and Collaboration Market Analysis, 2011-2015 Jan. 2011 $3,000.00 Inbox Management Solutions Market, 2011-2015 Jan. 2011 $3,000.00 On-Premises Email and Collaboration Market, 2010-2014 Dec. 2010 $3,000.00 Data Loss Prevention Market, 2010-2014 Dec. 2010 $3,000.00 Email Platforms for Service Providers Market, 2010-2014 Nov. 2010 $3,000.00 Wireless Email Market, 2010-2014 Oct. 2010 $3,000.00 Instant Messaging Market, 2010-2014 Oct. 2010 $3,000.00 ediscovery Market, 2010-2014 Oct. 2010 $3,000.00 * Discounted by $500 if purchased by credit card. Upcoming Publications: To Be Title Price* Released Unified Communications Market, 2011-2015 Aug. 2011 $3,000.00 Mobile Email Market, 2011-2015 Aug. 2011 $3,000.00 * Discounted by $500 if purchased by credit card. All Radicati Group reports are available online at http://www.radicati.com. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 51

MANAGEMENT STAFF Sara Radicati, Ph.D. President & CEO Dr. Sara Radicati is a widely recognized industry consultant and analyst expert in Messaging and Collaboration, Directory and Metadirectory Services, PKI/Security, Unified Communications, Wireless and Internet applications. Sara was one of the leading designers of the X.500 standards for directory services, and has played an active role in numerous major international standards organizations. She is a past Director of the European Electronic Messaging Association (EEMA). Her company, The Radicati Group, Inc., is an international consulting and market research firm with offices in Palo Alto, USA, and London, UK. The company assists corporate clients, vendors and network operators on planning, deployment and business strategies in all areas of messaging, directory services, unified communications, wireless and Internet applications. The company also performs due-diligence and advises investment firms in identifying new opportunities. Dr. Radicati is a widely published author and speaks frequently at industry events worldwide. Copyright September 2011 The Radicati Group, Inc. Reproduction Prohibited 52