Office 2.0

www.volzinnovation.com

Office 2.0

An analysis of new IT solutionsfor office productivity and collaboration

Volz Innovation GmbHAugust 2009


Agenda

Current situation Web-based solutions for office Web-based solutions for collaboration


Microsoft obtains 71% operating profit from the standard Desktop

Revenue Op. profit

35.803

25.410

71%

Source: Divisional reports in Microsoft annual report 2008Comment: In parantheses official divisional names

Windows (Client)

BusinessSoftware(MBD)

Office(90%)

EnterpriseRevenue(80%)

Microsoft income 2008 (in Mio. US$)


Google attacks the Microsoft Desktop

Google billboards advertising (August 2009)

Source: Photo of a billboard on a highway in New York, 4 th august 2009


This is just the latest episode of the “Office war“

Visicalc ('79)

MicrosoftMultiplan ('82)

MicrosoftExcel/Mac ('85)

Star DivisionStarWriter ('85)

MicrosoftExcel/PC ('88)

MicrosoftWord ('90)

Singleapps

Office packages

MailCalendarGroupware

OfficeOnline

Powerpoint(Web)mail

InstantMessenging

1979 2009

Lotus 1-2-3 ('82)- Spreadsheet- Database- Graphics

Ashon TateFramework ('84)

MicrosoftWorks ('85)

Lotus Smartsuite ('94)- Calendar- Organizer

LotusNotes ('94)

IBM buys Lotus ('95)

MicrosoftExchange ('96)

MicrosoftOffice 95

OEM bundlingof Microsoftdestroyscompetition

Office 97+ Web-Mail+ Outlook

ExchangeServer 2000

Office Live

Jabber/XMPPstandardised(1999-2004)

SUN attacsMicrosoft becauseof “Price Dumping“for server OS

SUN buysStar Division

StarOffice becomesOpen SourceOpenOffice.org

ThinkFree ('05)

Zoho Office ('05)

Google Apps ('06)

Open GOO ('07)

Microsoft On Demand Services ('08)- Hosted Exchange- Hosted Sharepoint- Hosted LiveMeet

28 versions ofOpenOffice.org

Evolution of Office offer


Todays Office packages contain three fundamental functionalitiesFunctional groups

Office Text processing

Spreadsheet

Presentation

Note taking

Task management

Database

Project management

Formula

Publishing Drawing

(vector graphics)

Picture editing(raster graphics)

Layout(desktop publishing)

Web-Design

Collaboration Mail

Calendar

Chat / Messenger

File and Document Sharing

Wiki

Forum

Focus of this analysis


Agenda

Initial situation Web-based solutions for office Web-based solutions for collaboration


Zoho online office has richest functionality and is installable On PremiseA comparison between Online Office applications

ZOHO Mail / Chat

Calendar

Text processing

Spreadsheet(with Macros / Pivot)

Presentation

Document Sharing

Note taking

Wiki

File Sharing

Organizer

ThinkFree Text processing

Spreadsheet(without Macros)

Document Sharing

Desktop applications(Java with Server-Backend)

Google Apps Mail / Chat

Calendar

Text processing

Spreadsheet(without Macros / Pivot)

Presentation

Webpages

(Online) Forms

Document Sharing

Wiki

InstallableOn Premise

Only On Demand

Comment: OpenGoo.org not yet production ready


Both ThinkFree and ZOHO are midsize IT firms located in India and Asia

ZOHOThinkFree

Company: HaanSoft

Headquarter: Seoul, Southkorea

Founded: 1999

First focussed onJava-based office solutions

Since 2005 Office On Demand

Turnover: 365 mio €

Market leader “Office“ in Korea

Other business:

Asia Linux

Education Software

Prior name: AdventNet, Inc.

Headquarter: India / USA

Founded: 1996

First focussed onnetwork management software

Since 2005 Office On Demand

Staff: 400

60.000 customers and mio of users

Other business:

WebNMS

ManageEngine

Online Office vendors


Example: ThinkFree Writer

Comment: First installation of Java-Applet takes 5 min.Test over DSL connection unacceptable lead to response time


Example: ZOHO Writer

Comment: Pure web applicationFirst test over DSL connection acceptable answering times, interface different from Microsoft Office


Zoho requires comparatively few IT resources per user

Zoho installation on baihui.com is an On Premise installation of Zoho for the chinese market

Sizing: 30 server for 50.000 user, 1000 accesses per second at the same time

23 Grid-Server (64-Bit Intel Dual Core, 16GB, 500 GB Disk, 1 gbps NIC)

7 simple network server for general tasks (Load Balancer, Monitoring, ...)

2 Switches, server twice patched

Comparable alternatives: Roll out to 50.000 PC installations

Citrix MetaFrame Presentation Server(~30 User / Server >>> ~ 1600 Server)

Source: Sizing Zoho, comparison based on own analysis

Sizing Zoho(Example baihui.com)


Online Office reduces costs while modifying functional capability

Zoho is a viable alternative for most corporate users

(So far) no full substitution for Microsoft Office

Users need to adapt to new user interface and functionality

Added functionality improves collaboration and reduces versioning chaos

Chances

Reducing costs for Office

Simplifying deployment

Centralising “Office“ with comparatively few hardware requirements

Risks

No local support office in most countries, support only in English

Unfamiliar working environments

Summary Web-based solutions for office


Agenda

Initial situation Web-based solutions for office Web-based solutions for collaboration

Comment:The analysis is reduced

on the main providers withdocumented big

deployments


Web frontends improved in the latest versions ofIBM Lotus Domino / Notes and Microsoft Outlook / Exchange

Last release 8.5 in January 2009

iNotes = Lotus Notes Web Access(old name before 2003 / new name)

iNotes is a simple/reduced version of the Notes Desktop Software

Parallel service to installed Desktop clients possible

Functionality (iNotes 8.5)

Mail

Calendar

To-do list

Contacts

Note taking

Release Exchange 2010 (version 14)in autumn 2009

Adds of “Google Mail“ features

Conversation View(summary of mail threads)

Extended storage space per user(up to 25 GB)

Unified communications(integration chat and mail)

Functionality (Exchange 2010)

Mail

Shared Calendar

18.8.09: Exchange 2010 Release Candidate freely available for testing

Microsoft Exchange/Outlook

Leading commercial providers

Lotus Domino/Notes


Lotus iNotes 8.5 = Domino Web Access


Outlook Web Access in Exchange 2010


Squirrelmail and HORDE are established Open Source webmail alternatives

Well known deployment:1.65 Mio. webmail users(ISP SAPO, Portugal)

Sizing

11 webmail+imap proxy servers

2 MySQL servers

6 Dovecot IMAP servers (dual 3.0GHz Xeon P4, 4GB RAM)

Squirrelmail Well known deployment:

35.000 mail users(University HEC, Montreal)

Architecture:IMAP, SMTP, LDAP, Cyrus, SquirrelMail

Sizing

11 IBM x305/x335 servers

IBM FAST 700 SAN (storage)

Established Open Source webmail alternatives

HORDE / IMP


Numerous ISP replace Notes/Exchange through Yahoo!Zimbra and Open-Xchange

Focus: large corporation for companies

Zimbra offers commercial version and maintains Open Source version

Company Zimbra by Yahoo! bought out for 310 mio $ in year 2007

Today: only sizable enterprise-oriented division of Yahoo!

March 2009: 40 mio paying users

Known customers:

Raytheon

Banco Promeica

Focus: hosting providers / ISP

Open-Xchange offers commercial version and maintains Open Source version

Financial situation:

2007: 1.7 mio € cumulated loss

2008: increase of 12 mio € venture capital in total

Known customers:

1&1

Versatel (1.3 mio users)

Open-Xchange

Open Source solutions for groupware provider

Yahoo! Zimbra


Yahoo Zimbra!


Open-Xchange


ZOHO also supports collaboration within corporations

Calendar

Note taking

Webmail

Task management


Another alternative is expected to be released next year by Cisco: PostPathPostPath acquisition through Cisco

Source: www.postpath.com (access 21th august 2009)

http://www.postpath.com/


XMPP ( Jabber) allows to build an own secure chat infrastructure

Standard XMPP (Jabber) established in 1999 – 2004 Numerous freely available Jabber servers

(part of every Linux distribution) Secure communication adjustable to own

requirements Transport encoding client / server and server / server

over SSL/TLS is possible, additionally possible end-to-end security with PGP

Highly scalable free messaging bus, known use as ESB, for voice over IP, video chat ...

Chat / Messaging with XMPP (Jabber)


Web 2.0 forms the new image of collaboration software

5 commercial software providers offer alternatives for groupware

Domino/Notes and Exchange/Outlook currently leading providers

updated their offer to meet competitors functionalities

particulary responded to challenges by On Demand providers

Zoho/Open-Xchange/Zimbra successfully penetrate market

Provider selection is only possible with detailed requirements and elaborated business case

Chances

Reducing costs for groupware licences

Risks

Difficult migration paths between providers

Summary


Dr. Raphael VolzVolz Innovation GmbH

Phone: +49 177 / 73 71 137Mail: [email protected]

Get in touch to discuss!