IDC Study Reveals Microsoft Exchange Gaining an Edge Over Lotus Domino/Notes in New Users of Groupware Worldwide in 1H98

FRAMINGHAM, Mass., September 29, 1998 — Microsoft Exchange bared its teeth in the market for integrated collaborative environment (ICE) software, commonly referred to as groupware, as it captured 5.7 million new users worldwide to narrowly edge Lotus Domino/Notes (5.3 million new users) for top honors in 1H98. New research from International Data Corporation (IDC), Network/Web Integrated Collaborative Environments Software Market Midyear Update, 1998, depicts this market as entering into an era of increased competition and strategic positioning among its top players.

According to IDC's research, Lotus Domino/Notes maintained its market dominance with total worldwide users reaching 21.9 million by June of 1998, well ahead of its nearest competitors: Microsoft Exchange (15.0 million), Novell GroupWise (12.4 million), Netscape SuiteSpot ICE (5.2 million), and SoftArc FirstClass (4.2 million). Please note that these figures do not include licenses distributed but not actually deployed and used, or licenses sold to ISPs and other service providers to host subscribers.

"The increase in bundling of ICE software licenses with other software and hardware products is having a tremendous effect on market dynamics," said Mark Levitt, research director of IDC's Collaborative and Intranet Computing research service. "In the first half of this year, there were millions of ICE user licenses and hundreds of thousands of ICE server licenses distributed in product bundles. Not surprisingly, vendors tend to count all of these licenses. The challenge that IDC and the rest of the industry faces is to accurately estimate the percentage of bundled ICE licenses that is actually deployed and used for collaborative purposes during a specific time period." The study also showed that enterprise groupware products continue to dominate the market, with team groupware from vendors such as ChangePoint, Instinctive, IntraActive, Netmosphere, and NexPrise just beginning to pick up steam after emerging as a new segment in late 1997 to meet the flexible collaborative needs of project teams spanning multiple organizations.

IDC's Network/Web Integrated Collaborative Environments Software Market Midyear Update, 1998 (IDC #17043) quantifies both enterprise and team groupware vendor and product shares by region (U.S., Europe, Asia/Pacific and Rest of World) in

terms of users, servers, and revenues from January through June 1998. It also shows the split between the enterprise and team groupware segments and profiles vendor and product related activities during that period. IDC projections for new users of the top four products from 1996 through the end of 1998 are also included.

This study is available for purchase at www.idc.com or by contacting Cheryl Toffel at 508-935-4389. For additional information on IDC's Collaborative and Intranet Computing program, contact Patrick Gorman at 508-935-4369

About IDC

Headquartered in Framingham, Massachusetts, International Data Corporation provides IT market research and consulting to more than 3,900 high-technology customers around the world. With a global network of 375 analysts in more than 40 countries, IDC is the industry's most comprehensive resource on worldwide IT markets, products, vendors, and geographies.

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