home
NEWS       BLOGS       FORUMS       NEWSLETTERS       RESEARCH       EVENTS       DIGITAL LIBRARY       CAREERS  
Network Computing Network Computing Powered by InformationWeek Business Technology Network

IMMERSE YOURSELF:

SOA

  |

Data Center

  |

802.11n

  |

Data Privacy

  |
APO  |

Virtualization

  |

NAC

  |

Security

  |

Network Mgmt

  |

Enterprise Apps

  |

Storage & Servers






Messaging Migration: It Pays To Do Your Homework

Research the Subject
Because data is so scarce, some businesses rely on research houses to get a handle on TCO. The two most frequently cited general analyses are from Creative Networks Inc. (CNI) and the Gartner Group. CNI bankrolled its own study, while Gartner's research was funded through a joint agreement with key messaging providers. Both studies rely on extensive user interviews.

CNI estimates that businesses pay more than $1,370 per user annually for highly economical, but feature-poor, open systems; more than $3,355 for feature-rich client/server systems; and more than $4,178 for older, less reliable and harder-to-maintain file-sharing systems. The analysis, which assumes 3,000 users and a three-and-a-half-year system life, prorates desktop functionality devoted to e-mail (27 percent of each system) and incorporates assumptions for productivity and revenue lost to system downtime (an average of $5.35 per hour of downtime). CNI's downtime metric is especially interesting in that it can also be used to measure uptime value.

In contrast, Gartner puts the annual per-user range at $72 for a 5,000-person organization over three years, acknowledging that this figure probably accounts for only about 40 percent of actual TCO. The study is geared primarily to the staffing costs for planning, implementing and operating messaging systems. Even in this smaller slice of overall TCO, the pain of trying to generalize shows through. When those with the highest and lowest TCO are excluded to address the middle 50 percent, the annual per-client range swings from a low of $24 to a high of $528.

Why are CNI's numbers considerably higher than Gartner's? Primarily, it's because CNI attempts to derive metrics for areas that are difficult to quantify--including the cost of server and desktop upgrades, and revenue and productivity losses associated with system downtime.

Meanwhile, another study, conducted by the Radicati Group and funded by Lotus Development Corp., puts first-year administration and management costs (including configuration, maintenance and salaries) at about $388 per user for Notes and about $403 for Exchange. Fifth-year costs rise to about $1,532 for Notes users and $1,765 for Exchange. Further muddying the statistical waters, companies that attempt their own TCO analyses come up with equally wide-ranging results, primarily because there are no uniform metrics to evaluate TCO. Also, while messaging system costs should be projected out over three to five years, it's important to remember that their typical life span extends to about seven, says Tony Ioele, CEO of I/G OpenWare, a turnkey messaging system provider for a wide variety of systems.

So, should businesses simply toss up their hands and discard these divergent findings? No, because the studies confirm at least three important points. First, it's extremely difficult to generalize about TCO--the costs and business value of a messaging system hinge on individual business type, traffic, geography, existing infrastructure and other differentiators. Second, generalized studies can provide valuable guideposts and metrics to help a business determine not only TCO, but the best messaging value proposition. Third, while older Notes products may have sucked up administrative resources, most studies show that later versions have similar TCO as Exchange when similar application sets are compared. Businesses may commit more administrative support to Notes, but this typically relates to the larger number of applications the businesses run on it.

Ioele says Exchange probably still enjoys an annual $30 to $60 per-user cost advantage over Notes, but he expects the two platforms to reach "a dead heat" by year's end when Exchange carries many of the add-ons and collaborative features already in Notes. Similarly, many products that run native Internet-standard protocols currently lack rich features. When new functionality arrives in these products, servers, networks and administrators all will face greater demand, raising overall TCO, Ioele says.


Print This Page







Ready to take that job and shove it?

Function:

Keyword(s):

State:
SPONSOR
RECENT JOB POSTINGS
CAREER NEWS
Go beyond Google and get vertical. These specialized search sites will help you find the business information you need -- fast.

Ari Balogh was named to the post of chief technology officer as the companys for a "realignment" of employees.










InformationWeek U.S. IT Salary Survey 2008
Salaries for business technology professionals are falling. Here's what you need to know in order to make good hiring decisions and personal career choices. Download Today
 
ROLLING RIGHT ALONG
Follow key Network Computing Reviews from conception to completion. This Week: Holistic APM.



Network Computing Reports Emerging Enterprise Podcast Series: Secrets to Success








TechSearch


Microsite of the Week


Powerful Information at Your Fingertips



InformationWeek Business Technology Network
InformationWeekInformationWeek 500InformationWeek 500 ConferenceInformationWeek AnalyticsInformationWeek CIO
InformationWeek EventsInformationWeek ReportsInformationWeek MagazinebMightyByte and SwitchDark Reading
Digital LibraryIntelligent EnterpriseInternet EvolutionNetwork ComputingNo JitterPlug Into The Cloud
space
Techweb Events Network
InteropVoiceConWeb 2.0 ExpoWeb 2.0 SummitEnterprise 2.0 ConferenceMobile Business ExpoSoftware ConferenceCSI - Computer Security Institute
Black HatGTECEnergy CampMashup CampStartup Camp
space
Light Reading Communications Network
Light ReadingLight Reading EuropeUnstrungLight Reading's Cable Digital NewsConstantinopleInternet EvolutionPyramid Research
Heavy ReadingLight Reading Live!Light Reading InsiderEthernet ExpoOptical ExpoTeleco TVTower Technology Summit
space
Financial Technology Network
Advanced TradingBank Systems & TechnologyInsurance & TechnologyWall Street & TechnologyAccelerating Wall StreetBank Systems & Technology Executive SummitBuyside Trading SummitInsurance & Technology Executive Summit
space
Microsoft Technology Network
MSDN MagazineTechNetThe Architecture Journal
space


App Infrastructure   |   Messaging & Collaboration   |   Network & Systems Mgmt   |   Network Infrastructure   |   Security  |   Storage & Servers   |   Wireless   |   Enterprise Apps
About Us  |  Contact Us  |  Site Map  |  Technology Marketing Solutions  |  Advertising Contacts  |   Briefing Centers
Copyright © 2008  United Business Media LLC  |  Privacy Statement  |  Terms of Service  |  Your California Privacy Rights