Domino vs. Exchange - Business, technical, and political considerations

Ed BrillSenior Manager,Lotus Solutions Marketing

July 24, 2002

Agenda

Marketplace update Understanding Exchange's Weaknesses

Understanding Domino's Strengths Q&A

Trends in the Messaging Market Messaging reaches the entire organization

24x7 operationIncreasingly used for operations, not just

communication User Segmentation

Knowledge Workers = CollaborationProductivity Workers = Rich messagingTraveling Users = Mobile access

Focus on cost as well as value

Typical Decision Criteria Total Cost of Ownership Best of breed enterprise messaging capabilities

Scalability, reliability, manageabilityChoice of platforms and deployment

architecturesWide array of client support, including mobility

Value beyond pure e-mailCollaborative applications built-in or buildableIntegration with existing business applications

Vendor strength and expertise

IDC, June 2001: Worldwide Integrated Collaborative Environment Software -- Revenue

9.0%5.0%

36.0%

50.0%

Others

Novell

Microsoft

Lotus

IDC Market Share report, June 2001

Claim many of Domino's competitive differentiators as their ownScalability, availability, security, enterprise integration and

workflow, web application development, ad-hoc teams Outlook is a better client than R5 R5 migration just as expensive as move to E2K Lower TCO Enterprise Agreement covers all you need for mail and

collaboration Domino's dead, Notes is dead, Lotus is dead and

Exchange is the market leader

Microsoft's competitive positioning

Exchange customer's grass isn't necessarily greener.... Less than 20% of Exchange 5.5 customers upgraded in

first 18 months (Ferris, Radicati)Gartner says it's even less -- 5%! (April 2002)This is why Microsoft is after Lotus customers!Active Directory is an expensive deployment challenge

Server consolidation needed to drive down costswith lots of cheaper "mail only" solutions in market

Exchange 2000Huge technical deficiencies in messaging aloneNot a collaboration platform$400+ per user to upgrade!!!! (Ferris 2002)

Wondering about Exchange's future in a .NET world

May 2001

"If Microsoft plans to make Yukon the back end of the future, should we bother expending considerable time and effort building on the WSS today?"

"[T]he future of Exchange and the WSS appears to be too unstable for us to make long-range plans for systems and applications based on these technologies."

"[T]he current state of migrating apps to .NET doesn't bode well for our future. "

"Clarifying the Fuzzy Future of WSS" [Web Storage System]

Key Exchange 2000 Technical Deficiencies

Reliability

Clustering requires shared disk, no "hot site" config.

Clustering model recommends <1500 users per server or active/passive configuration

No individual mailbox backup and recoveryScalabilit

y

Shared data store is a single point of failure

Limited by Windows32 architecture -- MS internal deployment only 3000 users per server

Security No integrated PKI -- two additional servers

required, few users API open to "Outlook Transmitted

Diseases" No concept of an execution control list

Mobility 20-80% more bandwidth required Doesn't do true replication No offline browser support

Applications

No dedicated tools for apps Distributed public folders almost never

used No deployment model Write separate for web and Outlook

"From a quality-of-life perspective, puttingtechnology like Domino on the ships is the

best thing we've done in the last 100 years"

Sam KatzInformation Technology DirectorAtlantic Fleet, US Navy

So why does Domino beat Exchange?

Unsurpassed Reliability AvailabilityScalability

Consistent Architecture

Unmatched SecurityNo virus attacks

End-to-end encryptionLocal data protection

User FlexibilityEight server platforms

Rich clients or browsersFull range of mobilityand off-line support

Completely customizable

True CollaborationDeveloper friendly

Open and "integrat-able"Evolving with the market

Key Domino differentiators

Enterprise Strength

Comparing Total Cost of Ownership

Lotus Domino 5.05 vs. MS Exchange 2000 Radicati Group, December 2001

Per user per year Average costs Lotus Microsoft

Acquisition Costs $145.93 $148.40

Maintenance Costs $29.43 $32.72

Installation and Configuration

$17.94 $41.15

Administration $93.04* $25.54

Downtime $20.73 **

Comparing Total Cost of Ownership

Lotus Domino 5.05 vs. MS Exchange 2000 Radicati Group, December 2001

* Putting aside the study's assertion that Notes admins work 80 hours per week... "Lotus Notes is particularly tailored to support messaging-based applications, therefore, environments running Notes typically deploy a greater number of messaging-based applications than any other messaging environment. This accounts for the higher time spent by Notes administrators on managing messaging-based applications."

** "The fairly high amount of downtime for Microsoft was due largely to unscheduled downtime. Lotus downtime, on the other hand, was largely for scheduled downtime."

Comparing Total Cost of Ownership

Microsoft Exchange is More Expensive than Lotus Domino FERRIS INSIGHT BULLETINJanuary 25, 2002

"Our belief is that you could at least half the reported administration cost for a Lotus Domino deployment in orderto get a fairer comparison between the lifecycle cost of Exchange and Domino for e-mail. Overall, this change gives a per user saving of $4.80 per month with Domino vs. Exchange, making Domino 22% cheaper to run."

Overcoming common concerns Usability

Feature differences go both waysOnly Lotus offers a full-featured Web clientNotes 6 designed to conformUse iNotes Outlook if you have toOr check out OpenNTF.ORG's work on "Lookout"

Integration IBM is Microsoft's largest ISV!R5 features MAPI support, Office Doc Library, Wordmail, moreDomino can run with IIS, Domino 6 even more flexibleActive Directory and MMC management in Domino 6

Keeping Notes/Domino currentManage your deployment effectivelyStay current on releases

"Desktop clients: Lotus Notes vs. Microsoft Outlook" "The license for Outlook is included in the site license for Office, so it may seem

at first blush to be cheaper. But the license cost is generally 5 percent of the total cost of ownership. Enterprises should keep looking for the systems and people costs that make up the other 95%"

"The Notes client uses the same messaging API (MAPI) compatibility with Office ... so most interactions with the Office suite are, in fact, available in the Notes client"

"Synchronization of Outlook with Exchange is significantly less efficient than replication of Notes with Domino. No improvement to this situation is expected from Microsoft until at least 2003 (.8 probability)"

"Lotus does...provide a better base for development of a browser client, and is expected to maintain that lead for at least the next two years"

DF13-2894, May 2001

Migrating from Exchange to Domino Over 150 companies took advantage of our

Exchange/Groupwise buyback program in 2001 Easier for smaller organizations, of course Migration tool built into Domino R5 Admin iNotes Access for MS-Outlook available to ease the transition Coexistence tools available from MS Third party partner tools also available Specially enabled "Move2Lotus" business partners

Call To Action Understand Lotus' current and future strategy Be proactive at communicating the benefits of your

environment to your end usersNo viruses, less downtime, better offline productivity

"The Truth is Out There" - Be vigilant against false claims and conjectureVisit http://www.lotus.com/compare

Be friends with your Lotus and IBM sales teamsand don't feed the FUD!

Thank you!ed_brill@us.ibm.com

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