Email Seats Based on Cloud by 2014: Gartner

By SiliconIndia   |   Wednesday, December 28, 2011
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By the end of 2014, penetration of cloud email and collaboration (CECS) services will stand at 10 percent and will have passed the "tipping point" with broad scale adoption under way.

Though the time is right for some enterprises - particularly smaller ones and those in industries with long underserved populations such as retail, hospitality and manufacturing to move at least some users to CECS during the next two years, analysts warned that readiness varies by service provider and urged caution.

It is expected that CECS to become the dominant provisioning model for the next generation of communication and collaboration technologies used in enterprises. Analysts predict that most enterprises will not begin the move to CECS until 2014 when growth in the market will take off, before leveling off in 2020 as it exceeds 55 percent.

It is believed that 10 percent of the enterprise market will use cloud based or software as a service (SaaS) email from year end 2012 to year end 2014. Analysts said organizations are moving more slowly than anticipated for three primary reasons.

While most enterprises that have adopted CECS appear to have moved everyone to CECS, reveals that they often retain small, dedicated, on premises systems to maintain greater control over the content created and consumed by C-level executives whose communications are almost always subject to legal and regulatory scrutiny at semi-regular intervals.

"However, cloud-based collaboration services appear to be forward priced and, the cost of CECS to follow a cost-learning curve, the motive for much of the investment in CECS appears to be cost reduction. Thus, if CECS makes sense for an enterprise, it would be far better off, while requiring that the CECS supplier guarantees to continue to reduce prices as prices in general fall in the market."

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