Small Organizations Don’t Invest in Exchange Administration Utilities

Whenever we speak with a vendor of Exchange administration products, we usually hear that their target customer is "medium-size to large" companies. That typically means organizations with 1,000 or more mailboxes. Why is it that smaller organizations don’t purchase these Exchange administration products, many of which can be quite useful for any size organization?

Three reasons that stand out:

  • First, Exchange has less market share in small companies. While it’s dominant in large enterprises and well-represented in medium-size companies, with up to a 50% market share, its overall market share in small companies is much less. Perhaps 20% to 25% of small companies use Exchange.
  • Second, vendor pricing schemes often use a per-server approach. While this is economical for customers with large numbers of users per server, customers with 100 or 200 users on a server may feel it’s too expensive.
  • Last, customers with just one server and a few hundred mailboxes may believe they can easily manage the server manually, as opposed to using automated tools. While this is often not the case, vendors have to work harder to sell their value proposition to small customers.

Chris Williams

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