BizCom has a new hosted Exchange/OCS/SharePoint offering.
Summary of Capabilities
- Hosted email, instant messaging, teamspace using Microsoft Exchange/OCS/SharePoint.
- Also provides integrated archiving, BlackBerry/Goodmail support.
- Available since July 2007.
- Based on Microsoft's code.
Illustrative Pricing
- $10 to $15/user/month for Exchange.
- $9.95/user/month for BlackBerry.
- Current promotional offer: archiving plus 500MB storage for $19.95/user/month; normally would be $25/month.
Main Types of Prospective Customer
Company expects growth to be driven by archiving and compliance, as follows:
- Companies with 10 to 50 POP accounts, who want the richer Microsoft set of services (shared calendar, mobile support, etc.).
- Firms with on-premises messaging solutions that are currently not in compliance with major regulations, and are concerned about such lack of compliance.
- Very small businesses with up to 10 employees, using ISP/ASP mailboxes; e.g., joe.smith@aol.com, joe.smith at bellsouth.net.
Competition
- Major competitors are AppRiver and Intermedia.
- Low-cost providers, such as 1&1.
Competitive Strengths as Perceived by Company
- Against firms such as AppRiver and Intermedia:
- Faster, better, more flexible service.
- Better consulting services relating to compliance.
- Against low-cost providers:
- Better installation and support services.
- Better consulting services relating to compliance.
Finances
- Privately held; company doesn't disclose revenues.
- Funded by principals.
- Profitable.
- Ferris Research estimates a current run rate of $2M annually, with perhaps a run rate of $500K annually for the Exchange/OCS/SharePoint element.
- Firm is contemplating a substantial round of financing.
Miscellaneous Comments
- Company founded in 1997 to do business and technology consulting for SMEs.
- Quick impression is that the company has a good handle on the hosted messaging business, is focused, and well-run.
- Loads of competition in the hosted Exchange/OCS/SharePoint space.
- Like its competitors, BizCom must pay a substantial part of its revenues to Microsoft. Microsoft will have great pressure on it to reduce these fees. Otherwise competitors such as Google have a massive cost advantage.
- Company anticipates longer-term growth will come via channel sales.
... David Ferris
One Comment
“Loads of competition” — including Microsoft itself, of course. I wonder what that realization will do to the “substantial round of financing”?