BPOS Update, New Pricing

Microsoft’s SaaS versions of Exchange/SharePoint/OCS have been out for a year. Here are some updates:

  • BPOS (the bundle of Exchange, SharePoint, OCS, and Live Meeting) has a million paid seats.
  • Largest customer is Glaxo Smith Kline, with 100,000 seats.
  • Microsoft continues to prefer to deliver via business partners. They get 12% of the initial sale, and 6% of ongoing revenues.
  • Currently sold into 20 markets. In addition, it’s being trialed in 15 new countries (e.g., Czech, Greece, Malaysia, Taiwan, Chile, Brazil).
  • A new data center will open in Brazil in 2010. That will make a total of seven data centers throughout the world.
  • Every 90 days substantial enhancements are added.

Pricing:

  • Hitherto, the bundled mix of Exchange/SharePoint/OCS and Live Meeting was priced at $15/seat/month. The price is now reduced to $10/seat/month. However, there was a semipermanent 30% promotion in place, so the reduction isn’t as material as it might appear.
  • Exchange Online Standard has gone from $10/seat/month to $5/seat/month, a big reduction. This will have material impact on competition.
  • Office SharePoint Online Standard has gone from $7.25/seat/month to $5.25/seat/month.
  • Office Communications Online has gone from $2.50/seat/month to $2/seat/month.
  • The Web-browser-only Exchange/SharePoint version is still $3/seat/month.

These online offerings are very strong and very attractive. We continue to be impressed. Sales are still in their very early days. The main competitors for the foreseeable future are:

  • On-premises versions of Exchange/SharePoint/OCS
  • Cisco and Google

The SaaS offering from IBM/Lotus is some way from being a major threat; we look forward to this situation changing.

David Ferris

Post a comment

You must be logged in to post a comment. To comment, first join our community.