IDC Reports Microsoft Nudged Slightly Ahead of Lotus and Novell in a Strong 1Q 1999 U.S. Groupware Market

FRAMINGHAM, Mass., June 7, 1999 — The 1999 U.S. market for integrated collaborative environment software, commonly referred to as groupware, saw its three leading vendors in a close heat (within 1 million new users of one another) during the first calendar quarter of 1999. According to International Data Corporation (IDC) estimates, Microsoft Exchange took an early lead with 1.9 million new users, followed very closely by Lotus Domino/Notes with 1.4 million new users and Novell GroupWise with 1 million new users in the United States.

"A strong showing in Q1 after such a tremendous Q4 1998 defies traditional market wisdom," said Mark Levitt, research director of IDC's Collaborative Computing research program. "A key factor driving Q1 sales was Y2K. For organizations that had not yet replaced older e-mail and groupware solutions, the first quarter was the time for deploying Y2K-ready solutions. We expect Y2K to continue driving sales through the second quarter."

"Microsoft's bundling strategy with BackOffice and enterprise licensing puts Exchange in a strong position as we move into the rest of the year," said Ian Campbell, vice president of IDC's Collaborative Technologies group. "We expect Lotus to benefit from its shipment of Domino/Notes R5 in April, the only new product to ship in recent months, while Novell GroupWise will continue benefiting from the strength of NetWare 5.0. Overall, we expect the market to remain closely competitive among the top three vendors for the rest of the year. Within vertical markets, we expect a greater variation between these vendors."

These estimates may differ significantly from vendor reported numbers due to IDC's estimates including only licenses of software actually deployed by organizations for internal users in 1Q 1999, and not including licenses distributed but not actually used or licenses sold by these and other vendors to ISPs and other service providers to host subscribers.

For information on IDC's Collaborative Computing program, contact Patrick Gorman at 508-935-4369 or Mark Levitt at 508-935-4482.

About IDC International Data Corporation is the information technology industry's most comprehensive resource on worldwide IT markets, trends, products, vendors, and geographies. IDC provides data, analysis, and advisory services to the world's leading IT suppliers as well as IS professionals in finance, insurance, entertainment, advertising, consumer goods, and publishing. IDC's research and opinions are based on the results of more than 300,000 end-user surveys, in-depth competitive analysis, broad technology coverage, and strategic analysis. IDC is committed to providing global research with local content through its 500 analysts in more than 40 countries worldwide. Additional information on IDC can be found on its Web site at http://www.idc.com.

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