Microsoft’s Problem(s)

Everyone knows Microsoft has lost its vision and direction in the consumer market and is years behind most industry leaders, with the Xbox as the possible exception.  But few know that Microsoft is facing the same loss of vision and direction with its server and enterprise business.

Microsoft is losing the battle of the Web

Microsoft's IIS is in red

Lets start with a little shock value: At the start of 2009, Microsoft’s IIS software was responsible for hosting about 35% of the websites on the Web. As of March 2012, Microsoft is now at approximately 13.5%. This is a 62% drop in the last 3 years and has had, and will continue to have, a significant impact on Microsoft’s future. This drop is even more dramatic when you consider the history of the Web and Microsoft IIS. As a former hosting provider myself, I remember starting my hosting business back in 1995 running Windows NT 3.51. It’s true that over the last 17 years, IIS suffered a number of issues. Today, however, it is a VERY solid and stable Web server platform. So why is Microsoft becoming as obsolete in the hosting industry as it has in the mobile phone and tablet industry? (Yes, Windows 8 shows some promise for tablets, but when it is released it will still be years behind iOS and Android in terms of availability and adoption – those are years it can’t make up). Microsoft has done a number of things to make Microsoft a viable platform and has overcome a lot of obstacles. However, in many cases each change for the better seems to precipitate a change for the worse.

Changes for better and worse

  • While Microsoft was slow to adopt open source development technologies such as PHP and Perl, they DID adopt them into the IIS/Windows realm, which is something you can’t say of the open source community with relation to Microsoft technologies like .NET.  (The MonoProject does exist but has not been well supported).
  • They introduced the Service Provider Licensing Agreement (SPLA), which made all hosting and service providers pay monthly royalties versus one-time expenditures. SPLA itself isn’t bad but there were some pricing blunders, like one in 2009 that could have doubled the costs for hosting providers (anyone remember the authenticated/non authenticated license fiasco?), that really put the fear of God into many Microsoft hosting partners. Some proposed upcoming changes may have an even greater effect on the viability of hosting Windows products, like changing SQL Server 2012 SPLA pricing to be based on the number of processor cores a server has versus the number of physical processors.
  • They had security vulnerabilities that made it difficult to isolate many customers on one web server for shared hosting. Over the last several years they have solidified the Windows server OS through the ability to set .NET permissions on app pools and made it easier to manage multiple single app pools sites on a a single server as well as mange resources by site, thereby increasing security and performance in higher density environments.
  • They were initially slow to respond to hosting companies and the hosting model. They tried to force their own ideal of Windows hosting onto the community without listening to existing Windows hosts. For a few years, however, they actually made an effort to start a conversation with Windows hosts. Nevertheless, I get the impression from talking to partners that his conversation is, once again, turning a bit one-sided.
  • And more recently, they started competing against their hosting partners with Office Live, Azure, Office365 and more. Microsoft always had a semi-contentious relationship with hosting partners. On the one hand they did what they could to make it easier on hosting providers but, all the while, many providers knew that Microsoft was going to benefit most from whatever changes were made. Whatever positive change Microsoft made for partners was closely followed by some other announcement, like when they announced that with every Office Live sign up users received a free website and free hosting for it, that was in direct competition to what partners were offering.

Many of these obstacles still exist but what Microsoft really seems to lack is a hosting division that really wants to commit to winning the “website count” battle. At one time the hosting division at Microsoft was VERY focused on this goal and we were often told that was how funding for the division was determined. I get the impression that this is no longer the case.

Hosting as a channel to the SMB

The hosting industry is an important channel for Microsoft as it allows them to access small and medium sized businesses, web developers and designers, and a number of enterprise customers. With a continued drop off in website count there will be a transition from not only IIS-based web servers but also many other server roles that are crucial to the hosting industry. This includes things like mail servers, application servers, cloud servers, virtualization servers and more. With the drop off, the impact on revenue for Exchange Server, .NET and Visual Studio, Hyper-V and Windows Server is clear but, bigger than that, will be the lack of a channel to reach the small and medium sized businesses and the design and development community, which is huge.

And I don’t think that Microsoft can make up for this loss by transitioning their focus to services like Office365. Microsoft is having an incredibly difficult time reaching small and medium sized businesses through their online services. Many SMB’s like the ability to have choice and go to hosting companies that may be local and close to their offices (or at least in their same city), that speak their language, that offer professional services beyond just hosting a website, that offer live and accessible customer service and support, and more. These are areas that Microsoft can’t compete. By focusing on the hosting market and by focusing on their hosting partners, Microsoft was spreading their technology and not only securing and increasing revenues on the server end, but they were also protecting their phone, tablet and desktop prospects.

What happened to “developers, developers, developers“?

The developer also plays a huge role in this. Microsoft has always done a great job creating opportunity for developers to build businesses around extending Windows and its overall platform. As Microsoft dwindles in its popularity the desire to work with Visual Studio, .NET and Windows in general will also decrease. As it is, many developers want to make the shift to OSX and want to avoid having to code to multiple machines and platforms. By moving to open source technologies such as Ruby, PHP, Perl, etc. they have this flexibility.

What does this all mean for Microsoft? Well, they are losing from all angles. Although their enterprise division is reporting growth, these “website count” issues will start to impact that business over time. In addition, it will impact the development division and eventually their desktop and consumer divisions will feel the pinch. As it stands, Microsoft’s own online services are years away from replacing their hosting partners and the personal and customizable services that hosting providers offer to small and medium sized businesses.

That’s my take, anyway. What are your thoughts? What does Microsoft have to do to start regaining market share in the hosting business and avoid becoming obsolete?

SmarterTools 2012 Conference Meetups

Photo courtesy of the HostingCon Flickr feed.

As many of you know, the SmarterTools ownership team came from the Web hosting industry where we provided services to almost 100,000 businesses worldwide. In those days, it was difficult to find solutions that provided the features that small and medium sized businesses required while offering the high availability, security and ease of maintenance that our fairly large-scale enterprises required.

For example, the mail server options available were expensive and incredibly unstable and often resulted in daily downtime. In fact, at one point we had employees whose sole responsibility was pushing messages through our mail server spools.

As for help desks, we couldn’t find any that were able to handle the amount of data we pushed through them and besides, they only offered a single function – we had to have different solutions for call tracking, email tickets and internal tasks.

Plus, there weren’t any stable and reliable options for providing customers with analytics on how their online businesses were running. The products that were available provided very limited information. There was no single product that offered features like data mining, search engine optimization and analysis and limited server health reporting.

As a result of all this, SmarterTools was born. We decided to build our own applications that provided small to medium sized businesses with the tools they needed for business communication and analytics, but that also had the ability to be provided through hosting and service providers. Over the years, the products we created have grown to offer a variety of features that are important to enterprise organizations while keeping with our focus on the small and medium business. In addition, our philosophy of being able to install and set up any of our products within minutes and keeping management/administration of our products simple and convenient remains intact and is a key component of our success.

Photo courtesy of WorldHostingDays.

Although we are no longer in the hosting business, we are firmly embedded in the small and medium sized business community. We use every one of our own applications and continue to enhance them based on our needs, to solve problems we see in the SMB market and to address the needs of thousands and thousands of customers. We continue to communicate directly with our customers through social outlets such as our community forums, our Facebook page and our Twitter account, as well as via various focus groups. We also enjoy meeting face-to-face with customers at conferences and local industry events.

This leads me to the point of this blog post. In 2012, SmarterTools is making a concerted effort to make ourselves available to you — our partners, customers and potential customers across all industries, including hosting companies, service providers and small businesses. To this end, we’ve compiled a list of the conferences we’re attending this year, along with information on where they are and the dates we’ll be in the area. We’d like to set up face-to-face meetings with as many of you as possible, whether it’s at the conference or even at your place of business.

So don’t be surprised if you receive an email asking if you’d be interested in sitting down with SmarterTools CEO Tim Uzzanti, our Manager of Internal Development, Grady Werner, our Manager of SmarterMail Development, Bryon Grosz, or even me, Derek Curtis, the Vice President of Marketing and Communications, and other SmarterTools development staff. We’d love to talk about your business, your goals and how SmarterTools can help get you to where you want to be. If you’d rather not wait for us to contact you, simply send us an email at sales@smartertools.com and we’ll set up a place and time to talk.

We look forward to meeting you all and hope to see you at one of the following events:

Parallels Summit – February 14 – 16
Gaylord Palms, Orlando, FL
http://www.parallels.com/summit/2012/

WorldHostingDays – March 20 – 23
Europa Park, Rust, Germany
http://www.worldhostingdays.com/eng/index.php

FutureInsights Live – April 30 – March 3
MGM Grand Hotel, Las Vegas, NV
http://www.futureinsightslive.com/

Microsoft TechEd – June 11 – 14
Orlando, FL
http://northamerica.teched.com

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HostingCon – July 16 – 18
Hynes Convention Center, Boston, MA
http://www.hostingcon.com/

–>

Happy Holidays from SmarterTools

Holiday banner with holly and snowflakes
It’s time for us to spread some holiday cheer, and this year we’re pleased to welcome the participation of Commtouch and Microsoft, two great partners, to help make your holidays that much brighter.

What do you get?

From now until January 5, 2012, when you purchase a new SmarterMail Enterprise license or upgrade an existing SmarterMail Professional license to a current SmarterMail Enterprise you will receive all premium add-ons for FREE*:

  1. Microsoft Exchange ActiveSync (up to 100 mailboxes)

    Up to a $499 value*

  2. Commtouch Zero-hour Antivirus

    Up to a $699 value*

  3. Commtouch Premium Antispam

    Up to a $699 value*

That means you can save up to $1,900.00*, plus save yourself valuable time and reduce management headaches when using these three fantastic premium add-ons with your new purchase or upgrade.

NOTE: With such a great deal, it obviously can’t last forever. The availability of free add-ons is based on demand, as we have been given a limited number of licenses from our third-party partners to give away. So ACT NOW to take advantage of this fantastic holiday offer!

But wait…what about SmarterMail 9.x?

SmarterMail 9.x is in BETA now  and once it’s fully released (which should be in just a few short weeks), you’ll get SmarterMail 9.x for free, plus any other upgrades that occur within the 12-month upgrade protection period.

How do these add-ons help?

The combination of these add-ons will provide more features and functionality for your users while increasing the security and performance of your SmarterMail server.

Exchange ActiveSync (EAS)

Offers push technology for instant, two-way synching of calendars, contacts, tasks and notes and allows users to access their mailboxes  from anywhere using any mobile device, such as the Apple iPhone or iPad, Android tablet or smartphone and Windows Phones.

Commtouch Premium Antispam

Using a patented Recurrent Pattern Detection system, Commtouch Premium Antispam actively analyzes large volumes of Internet traffic in real time, recognizing and protecting your mail servers against new spam threats the moment they emerge and taking your spam protection to over 99%.

Commtouch Zero-hour Antivirus

Commtouch Zero-hour Antivirus offers a new level of security for mail servers by actively scanning the Internet and identifying malware outbreaks as soon as they emerge, thereby providing proactive virus blocking that is effective, immediate and signature-independent.

How do I get it all?

It’s easy! Just contact our helpful sales team via live chat or email to receive a qualified price quote. Once you have that, simply fill the price quote using the SmarterTools shopping cart between now and January 5, 2012. No hassles, no headaches, no worries.

Ready to claim your holiday bonus?

Contact our Sales Team and get started today!

*Disclaimer: Offer good on new purchases of a current SmarterMail Enterprise Edition, 250 or more mailboxes or an upgrade of SmarterMail Professional Edition to a current SmarterMail Enterprise Edition, 250 or more mailboxes only. Maximum offer value is based on purchasing SmarterMail 8.x Enterprise Edition with unlimited mailboxes and comparable licenses for Exchange ActiveSync (100 mailboxes), Commtouch Premium Antispam (unlimited mailboxes) and Commtouch Zero-hour Antivirus (unlimited mailboxes). All free add-on licenses expire 12 months form the date of purchase. For existing customers upgrading to SmarterMail Enterprise, free add-on licenses correspond with existing upgrade protection, so eligible customers will receive free add-on licenses for the reminder of their upgrade protection term (up to 12 months). No other license modifications or upgrades are eligible for these offers. Offers are not valid on hosted service subscriptions, add-on purchases, upgrade protection renewals or with any other discounts or promotional offers. Offers and availability are subject to the quantity of licenses on hand and expires January 5, 2012.

SmarterMail 9.x Beta Available Now!

The BETA for SmarterMail 9.x has arrived and there’s something for everyone in the next iteration of our world-class mail and collaboration server:
  • Revised interface and back-end programming to increase speed and performance and to enhance mobility
  • Even better synchronization of email, contacts and tasks using Microsoft’s latest synchronization technology
  • Better integration with Microsoft Outlook 2011 for Mac and Outlook 2012 for Windows
  • Instant messaging brings instant communication
  • Simpler and smoother installation and setup process

Getting Started with the BETA

If you’re interested in getting your hands on the BETA, please visit the SmarterMail 9.x BETA forum, where you’ll see how to:

  • Sign up for the BETA
  • Get a special BETA license key
  • Download the latest BETA release – it’s being updated regularly
  • Communicate with other users and the SmarterTools development team
  • Follow the latest BETA release and stay  up-to-date on the latest release notes

Sign up for the BETA

SmarterMail wen interface shown on an Apple iPad

Focus on the interface – increasing speed and mobility

Are you ready for an incredibly powerful and fast web interface that can be used across desktops and tablets (including iPad and Android)?  Now you have it! With SmarterMail 9.x, we have optimized the web interface for even the slowest of tablets while making it “XOOM” on desktops.  We believe users deserve the full SmarterMail experience across all platforms, whether your using a mouse or a touch interface.

Outlook interface synchronized with SmarterMail through EWS

Outlook and SmarterMail!

SmarterMail 9.x is one of the only mail servers (including Microsoft Exchange) to support Exchange Web Services (EWS).  EWS is Microsoft’s new technology allowing Microsoft Outlook to connect natively and seamlessly with a mail server.  Currently, Microsoft Outlook 2011 for Mac supports EWS and the upcoming Microsoft Outlook 2012 for Windows will support it as well.  EWS is intended to replace the old and antiquated MAPI technology, allowing for much faster communication and access to the latest technologies, and joins the existing methods already provided for connecting Microsoft Outlook and SmarterMail together!

More SYNC friendly

Ice Cream Sandwich, iOS 5, Mango, Lion and more!  The industry is ever evolving and so is SmarterMail as it continues to focus on improvements in supporting the latest technologies.  Whether you or a user wants to try a new mobile phone, tablet or OS you can be assured SmarterMail will meet your needs.

SmarterMail instant messenger interface

Email is good
but instant is GREAT!

No matter the size of an organization, the ability to communicate securely and instantly is crucial.  SmarterMail 9.x integrates an Instant Messenger seamlessly without any additional configuration.  Whether you’re logged into the Web Interface or would like to use a Jabber client on your desktop, tablet or mobile device, communicating with other users in your organization is great!

Simpler, smoother
installation and setup

Although SmarterMail is one of the easiest and more lightweight mail servers on the market, we have not stopped improving the process to get new servers installed and setup!   SmarterMail 9.x introduces an updated getting started wizard with multiple walkthrough videos to help simplify the process.

Is that it?

SmarterMail 9.x has many more features and improvements.  Below is a quick overview of some that may be of interest:

  • Outgoing Mail Quarantine – messages flagged as spam or as a virus can now be quarantined for review to better understand why they were blocked and who was blocked.
  • Appointment Conflict Notification – when making appointments from Web mail, SmarterMail automatically notifies you of conflicts between your attendees.
  • Administrative logging – all system and domain setting changes are now logged for auditing purposes.
  • Sender Match to Authenticated Address – a heavily requested feature to require the authenticated email address also be the email address used as the sender’s “From” address. 
  • APS Integration – SmarterTools is now providing APS packages for Parallels’ control panels for more comprehensive integration
  • Web Services – additional web services have been made available to further automate the provisioning and configuration of SmarterMail
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