New IDC Study Puts Lotus at the Top of the 50 Million Groupware User Market

FRAMINGHAM, Mass., May 6, 1998 – Users of groupware, also known as Network/Web Integrated Collaborative Environments (ICE) software, doubled in 1997 to more than 50 million users worldwide from a year earlier, according to new International Data Corporation research. Lotus Domino/Notes software led the market in new users worldwide followed by Microsoft Exchange, Novell GroupWise and Netscape SuiteSpot. In terms of total users, Novell held the second spot after Lotus, followed by Microsoft and SoftArc. IDC expects this segment to grow to more than $2.4 billion in revenues worldwide by 2002, up from $1.3 billion in 1997.

According to the report, broad product support for Internet standards and increasing reliance on groupware solutions chronicled in ROI and case studies of user organizations are fueling demand for integrated groupware software. The sales momentum of the top vendors and the rising prominence of bundled software will force lower-tiered vendors to carve niches and seek partnerships, strategic alliances, and acquisitions to survive an industry shake-out.

"The sun is setting on single application products that are still trying to compete directly against integrated solutions," said Mark Levitt, research manager of IDC's Collaborative and Intranet Computing research service. ?Vendors planning to be around at the turn of the century should follow the example of team-oriented groupware vendors, which position their offerings as complementary to traditional groupware solutions based on unique functionality, affordability, and flexible use and administration."

The report also presents a view of the declining market for Host ICE, E-Mail Only, and Information Sharing products that will continue to lose ground to network/Web ICE products. Two other segments, Group Calendaring/Scheduling and Electronic Conferencing, demonstrated double-digit revenue growth worldwide in 1997 and are expected to see decent user growth through most of the forecast period.

IDC's Collaborative Applications Software Market Review and Forecast, 1997-2002 (IDC #B15911) provides detailed market share information for collaborative applications software, also known as groupware software. The report quantifies 1997 revenues, users, and servers for each market segment by region (e.g.,United States, Europe, Asia/Pacific, and the rest of the world), as well as client software licenses for the E-Mail Only segment. In addition, the report contains vendor profiles discussing activities, strengths and weaknesses, and IDC Leadership Grids presenting IDC's opinion on companies and their position in specific market segments. Additionally, the report examines forecast, technology, and product trends for each market segment and provides worldwide and U.S. forecasts for each market segment through 2002.

This study is available for purchase on the IDC Web site (www.idc.com) or by contacting Cheryl Toffel at 800-343-4952. For additional information on IDC's Collaborative and Intranet Computing program, contact Elizabeth Freedman at 508-935-4764.

About IDC

Headquartered in Framingham, Mass., 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 300 analysts in more than 40 countries, IDC is the industry's most comprehensive resource on worldwide IT markets, products, vendors, and geographies.

IDC/LINK, an IDC subsidiary, researches and analyzes the home computing market, leading-edge technologies in telecommunications and new media, and the convergence of computing and consumer electronics.

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