SmarterMail 11.x BETA Now Available

We’re excited to announce the BETA of the next version of our popular Windows mail server: SmarterMail 11.x. Over the last few major releases we focused on providing an incredibly powerful and user friendly Web interface that users would enjoy.  With this latest release, we kept the same look and appearance but rewrote the underlying architecture with the latest Internet technologies to dramatically improve the speed, reduce the size and increase compatibility with all the latest Internet browsers and tablets.

In addition, SmarterMail 11.x brings several new features, server side optimizations and fixes that continues to make SmarterMail compatible with the latest Internet trends.  As with all releases, we worked closely with customers and partners and while we couldn’t incorporate everyone’s ideas into this release, we prioritized our users’ wants to create a new version of SmarterMail that we think you’ll really like.

So let’s take a look at what’s new…

Tremendous Performance Increases

We spent a great deal of time benchmarking SmarterMail and then making changes to increase the level of performance across the board. In many instances we’ve seen increases of 70% or more in the speed and responsiveness of the SmarterMail 11.x interface. We’ve also seen huge decreases in memory and CPU usage, even under extremely heavy loads. All of this means that the product runs much quicker and much more efficiently than previous versions. Some of the changes we’ve made include:

  • Re-factored and completely re-wrote many areas of the web interface to reduce the amount of JavaScript code, CSS and HTML, making the entire web interface much faster, much more responsive and much lighter weight.
  • CSS files have been converted to LESS, making stylesheets much smaller and more efficient.
  • The button bars were re-factored to be lighter weight controls.
  • The context menus were re-factored to be lighter weight controls.
  • The date pickers were re-factored to be lighter weight controls.
  • The tree view controls were re-factored to be lighter weight controls.
  • Greatly increased the performance of the Web interface.
  • Replaced the message editor control with a more lightweight control.
  • SmarterMail Service memory has been drastically reduced using SpamAssasin.

As we mentioned in a blog post late last year, we feel efficiency IS a product feature, and SmarterMail 11.x really proves that point.

Simple Customization of the Webmail Interface

personalizationSmarterMail 11.x introduces a much simpler way for users to customize the look and feel of their webmail experience. Now, rather than having to access system files to create custom styles, users can simply override existing SmarterMail styles with their own variables or, more simply, by modifying the overall color scheme of the primary, secondary and hyperlink colors. Users can even drastically revise the look of the webmail interface. For example, by moving the navigation icons to a horizontal position versus their default vertical position. Of course, if the Domain Admin prefers the defaults, customization at the user level can be disabled, thereby preserving branding and corporate identity.

Significant Improvements to Microsoft Exchange ActiveSync

Note-2-Calendar_smCustomers using the Exchange ActiveSync (EAS) add-on enjoy the industry standard in syncing technologies for all mobile devices and will be ready for the next version of Microsoft Outlook for Windows that’s coming in Office 2013. With SmarterMail 11.x we’ve made some significant changes in how SmarterMail integrates EAS, including better handling of the most popular devices from Samsung, the Galaxy S III and Galaxy Note II, and seamless integration with their native email clients.

Changes to how SmarterTools products work with add-ons are often only available with major upgrades due to the agreements we have with our vendors and partners. Customers who stay current with Upgrade Protection are able to take full advantage of these changes and modifications, not to mention receive full version upgrades at no additional cost. In addition, with SmarterTools, you can reinstate your Upgrade Protection at any time and still receive a discount. And unlike our competitors, SmarterTools doesn’t force customers to purchase each incremental upgrade that’s available when reinstating Upgrade Protection.

IPv6 Now Available

With the dwindling availability of IPv4 addresses, more and more hosting companies and service providers are moving towards utilizing IPv6 addresses. In addition, there will come a point where businesses of all shapes and sizes need to begin using IPv6 addresses as well. SmarterMail 11.x is here to help ease that transition. In fact, implementation of IPv6 with SmarterMail 11.x is just as simple as IPv4 – there’s no learning curve, no hassles and essentially the same functionality is available for IPv6 addresses as for legacy IPs. End users won’t even be able to tell the difference!

Greater Calendar Control

new_calendar In SmarterMail 10.x we greatly increased the functionality of our calendaring, and with SmarterMail 11.x we’re continuing that trend. In this latest version, users can not only set the default view for their calendars in the Web interface (either daily, weekly, monthly or all appointment views) but users can also automatically clean out old calendar entries. Domain or System Administrators can also default the auto-clean feature for calendars, making it an ideal solution for those admins who want to keep their mail servers manageable and running as smoothly as possible.

spell_checker

Improved Spell Checking

No one likes to send emails with spelling errors. With SmarterMail 11.x we completely revised how spell checking works, greatly increasing the accuracy and adding in grammar support. In addition, the new spell checking ignores things like URLs and email addresses and users can select an option to force spell checking before their email is actually sent, which should help with those awkward misspellings and grammar mistakes. You can also add your own words to your own dictionary to further customize and simplify your communications.

contact_pictures

Personalize Your Contacts

With the growth in popularity of social networks, people are used to see whom they’re talking to when typing up messages. SmarterMail 11.x allows users to add pictures to their contacts, thereby putting a face to a name, as it were, when typing up emails or using the included live chat. Contact pictures will even carry over to third-party live chat clients like Adium or Pidgin so users always see the person they’re communicating with, regardless of medium. In addition, ActiveSync and CardDAV will synchronize contacts with your choice of Third-party applications.

New Features for System Administrators

As if the incredible performance increases won’t make their jobs easier enough, we’ve also included several new features, tools and improvements for System Administrators. Some of these include the ability to utilize an abuse detection rule that allows blocking of IP addresses that exceed a set number of authentication failures over a variety of protocols, the ability to delete IP address that no longer exist right from the IP address bindings page and the implementation of the UIDPlus extension for IMAP. System administrators can even search log files written to the MRS\App_Data\Logs folder from within the management interface and much more.

17 Different Spell-check Dictionaries Included

In addition to the improved spell checking, SmarterMail also includes dictionaries for 17 different languages. The languages supported include:

  • English (US+UK Combined) – DEFAULT
  • English (US), (Australia), (Canada), (UK)
  • French
  • German/German (Switzerland)
  • Greek
  • Hungarian
  • Italian
  • Norwegian
  • Polish
  • Portuguese/Portuguese (Brazil)
  • Russian
  • Spanish

Greater Support for International Customers

SmarterMail is a truly international product. With customers in well over 120 different countries, support for languages other than English is a priority. In addition, as SmarterMail’s adoption across the globe continues to rise, support for non-Western character sets is also essential. With SmarterMail 11.x we’ve not only included support for right-to-left languages in our Web interface, but we’ve also gone through the entire product and greatly simplified our language strings to make things much easier for automated translations and for customers who create their own translation files.

Is that it?

Of course not! SmarterMail 11.x has many more features and improvements. You’ll find them in the release notes we’ll post in the SmarterMail 11.x BETA forum, but here are a few more that might be of interest:

  • A new content filter action was added for flagging messages and setting their priority.
  • Print preview now includes a list of attachments, perfect for regulatory compliance.
  • Users can now set start dates and end dates for their auto-responders.
  • Status messages and tip text now drops down from the top of the page and no longer disrupts page flow.
  • Language strings have been simplified so that they are much easier to translate.
  • In the webmail interface, the message grid now adds a color to the subject of unread messages to better distinguish them from messages that have already been read.
  • The ability for SmarterMail to detect missing attachments when they should be present. For example, when a message contains the word “attachment” but no files are attached or the subject is empty.

Getting started with the BETA

To get your hands on the BETA simply visit the SmarterTools BETA release forum, where you’ll see how to:

  • Sign up for the BETA
  • Get a special BETA license key
  • Download the latest BETA release (we update it regularly)
  • Communicate with other BETA testers and the SmarterTools development team
  • Stay up-to-date on the latest release note and BETA news

Sign up for the BETA

SmarterTrack 9.x BETA Now Available

We’re excited to announce the BETA of the next version of our popular help desk: SmarterTrack 9.x. Over the last few major releases we focused on providing a Web interface for SmarterTrack that agents, managers, administrators and end users would find as simple as it was powerful.  With this latest release, we kept the same look and appearance but rewrote the underlying architecture with the latest Internet technologies to dramatically improve the speed, reduce the size and increase compatibility with all the latest Internet browsers and tablets.

In addition, SmarterTrack 9.x brings several new features, server side optimizations and fixes that continues to make SmarterTrack compatible with the latest Internet trends.  As with all releases, we worked closely with customers and partners and while we couldn’t incorporate everyone’s ideas into this release, we prioritized our users’ wants to create a new version of SmarterTrack that we think you’ll really like.

So let’s take a look at what’s new…

Tremendous Performance Increases

We spent a great deal of time benchmarking SmarterTrack and then making changes to increase the level of performance across the board. In many instances we’ve seen increases of 70% or more in the speed and responsiveness of the SmarterTrack 9.x interface. We’ve also seen huge decreases in memory and CPU usage, even under extremely heavy loads. All of this means that the product runs much quicker and much more efficiently than previous versions. Some of the changes we’ve made include:

  • Re-factored and completely re-wrote many areas of the web interface to reduce the amount of JavaScript code, CSS and HTML, making the entire web interface much faster, much more responsive and much lighter weight.
  • CSS files have been converted to LESS, making stylesheets much smaller and more efficient.
  • The button bars were re-factored to be lighter weight controls.
  • The context menus were re-factored to be lighter weight controls.
  • The date pickers were re-factored to be lighter weight controls.
  • The tree view controls were re-factored to be lighter weight controls.
  • Greatly increased performance of the Web interface.
  • Replaced the message editor control with a more lightweight control.

As we mentioned in a blog post late last year, we feel efficiency IS a product feature, and SmarterTrack 9.x really proves that point.

color_customization

Simple Customization for the Portal and Management Interface

SmarterTrack 9.x introduces a much simpler way for users to customize the look and feel of their management interface as well as the entire customer-facing Web portal. Now, rather than having to access system files to create custom styles, users can simply override existing SmarterTrack styles with their own variables or, more simply, by modifying the overall color scheme of the primary, secondary and hyperlink colors. Users can even drastically revise the look of the management interface. For example, by moving the navigation icons to a horizontal position versus their default vertical position. Of course, if an Administrator prefers the defaults, customization at the user level can be disabled, thereby preserving branding and corporate identity. Regardless, with these changes to the customization experience, web developers can more fully integrate a SmarterTrack help desk into an existing Web site.

kb_suggestions

Streamlined Knowledge Base Suggestion Process

Both live chat and ticketing are integral parts of any company focused on customer service. However, they shouldn’t be barriers to customers finding out information on their own. In fact, companies can cut support costs by better positioning self-help resources, making them more apparent and easier to use for their customers. With that in mind, SmarterTrack 9.x better integrates self-help options for issues prior to a live chat being sent to an agent or a ticket being submitted from the Web portal. After an end user types in their initial query they are presented with a new page that lists suggested knowledge base articles based on keywords and phrases that are contained in the live chat or ticket text. End users can then see potential solutions before communicating with customer support agents and possibly resolve their issues themselves.

spell_checker

Improved Spell Checking

No one likes to send replies to tickets or live chats with spelling errors. SmarterTrack 9.x offers a completely revised spell checking engine that greatly increases the accuracy of the spell check as well as adding in grammar support. The new spell check also ignores things like URLs and email addresses and allows agents to add words to their own personal dictionaries.

Better Mobile and Tablet Support

SmarterTrack was architected so that the experience a user gets from a browser on a tablet mirrors their experience in the browser on their desktop. With this latest release, the experience is even more fluid and enjoyable due to a complete revision of the HTML editor used to create and/or reply to tickets, create knowledge base articles and more. Now it’s even easier, and more efficient, for agents to work from anywhere, at any time, using the laptops or tablet devices. And of course, the mobile interface is still available for devices with smaller screens, like smart phones.

Greater Support for
International Customers

SmarterTrack is a truly international product. With customers in well over 120 different countries, support for languages other than English is a priority. In addition, as SmarterTrack’s adoption across the globe continues to rise, support for non-Western character sets is also essential. With SmarterTrack 9.x we’ve not only included support for right-to-left languages in the management interface and on the portal, but we’ve also gone through the entire product and greatly simplified our language strings to make things much easier for automated translations and for customers who create their own translations files.

17 Different Spell-check Dictionaries Included

In addition to the improved spell checking, SmarterTrack also includes dictionaries for 17 different languages. The languages supported include:
configure_dictionary

  • English (US+UK Combined) – DEFAULT
  • English (US), (Australia), (Canada), (UK)
  • French
  • German/German (Switzerland)
  • Greek
  • Hungarian
  • Italian
  • Norwegian
  • Polish
  • Portuguese/Portuguese (Brazil)
  • Russian
  • Spanish

These dictionaries are fully editable as well, so agents who speak multiple languages and use the dictionary of their choice and add words as needed.

Is that it?

Of course not! SmarterTrack 9.x has many more features and improvements. You’ll find them in the release notes we’ll post in the SmarterTrack 9.x BETA forum, but here are a few more that might be of interest:

  • Phone numbers now carry over from the login and user creation external provider.
  • Incoming or outgoing tickets created by agents can now be pinned to an agent when they are created.
  • Status messages and tip text now drops down from the top of the page and no longer disrupts page flow.
  • Language strings have been simplified so that they are much easier to translate.
  • SmarterTrack Communicator users can now designate calls, either incoming or outgoing, as “Personal” in order to prevent automated call logs.
  • Canned replies are now inserted into a ticket or chat wherever the cursor is located.
  • Duration now appears in the ticket grid so that agents and managers can see the total time a ticket has been worked on.
  • All default system emails were reviewed and rewritten to make them easier to understand.

Getting started with the BETA

To get your hands on the BETA simply visit the SmarterTools BETA forum, where you’ll see how to:

  • Sign up for the BETA
  • Get a special BETA license key
  • Download the latest BETA release (we update it regularly)
  • Communicate with other BETA testers and the SmarterTools development team
  • Stay up-to-date on the latest release note and BETA news

Sign up for the BETA

Microsoft building an ecosystem with Barnes and Noble investment

Microsoft is one of the largest players in the next generation of platforms and operating systems but it’s the only one with out an ecosystem. That is, it’s the only one without revenue generating services that can help power and guide those platforms

In a previous blog post, “Windows 8 will succeed, but Microsoft could still fail“, I talked about Windows 8 and the impact it could have on the antiquated business model Microsoft has for their Windows Division. Specifically, I talk about how their business model is in trouble due to pressures on providing free upgrades like Apple and Google do for the iOS and Android platforms. I further propose that, without additional revenue generating services, Microsoft is going to have a difficult time competing in the platform space moving forward. In order for Windows to succeed in the Post-PC era, Microsoft needs to build an ecosystem that provides their main source or revenue in the consumer space.

Oddly enough, it seems Microsoft understands this and its recent injection of money into Barnes and Noble is proof.

It’s no great secret that Microsoft is years behind Apple, Amazon, and Google in providing online services. In addition, Microsoft will not be able to build these services in a reasonable amount of time and, to be honest, their track record has proven they aren’t necessarily very good at it. They have attempted multiple music services, either through building it themselves or via partnership, and none were very successful. In addition, their implementation had a long lasting impact on users because they took down DRM servers making some music no longer able to be played.  Bing has been somewhat of a bomb and continues to cost Microsoft money.

The “funding” of a new Barnes and Noble digital and educational company is brilliant. This allows Microsoft to complete against all three major e-book players on a fairly level playing field very quickly. Without Barnes and Noble, Microsoft would be in a world of hurt, plus they have added another piece to their ecosystem.  Microsoft is already planning to come out with an App Store for Metro, which will provide some decent revenue opportunities, but having access to the Barnes and Noble customer base and providing their e-reader on all Windows 8 versions is a step in the right direction.

Now the question is, where is Microsoft going to get video?

A friend of mine, Jeff Hardy, sent me an email and suggested, albeit sarcastically, that Microsoft buy Netflix. The funny thing is, I agree 100% with the idea.  Netflix is in trouble. They don’t have enough money to get enough content and they’re stuck.  Companies such as NBC, CBS, FOX, Showtime, HBO, etc. don’t like the Netflix model. Plus, Netflix has another issue: their model works great for older content but you can’t sell customers on older content. New and ever-changing content drives revenue. That’s why CBS, NBC, et. al. have their own apps and websites for customers to consume “new” content.

Microsoft has the perfect opportunity to get into the TV and movie service, immediately and across ALL platforms.  Microsoft could go from zero ecosystem to a complete ecosystem, across every device and platform available, practically overnight. Once Microsoft has their new media service (i.e., post-Netflix), they will have the money and the leverage to bargain with the NBC, CBS, HBO and other media companies. Microsoft will now own the platforms – Windows Mobile and Windows for desktops and tablet – and will have the ability to extend Netflix into a rental service as well, just as Apple has with iTunes and Amazon with their Prime service. The Amazon model is really the one everyone needs to move to. What’s holding Amazon back is that their video can only be played on limited devices and the service is very dependent on Flash.

So that leaves Microsoft with a need for a music service, and it sounds like they’re going to try to develop their own solution again. This time it should be simpler both because they’ve tried it before, and this time there are a few good models to use moving forward.

Investors, and even politicians, are giving Microsoft a lot of heat for sitting on nearly $60 billion in cash. This might have been a very smart decision and will give Microsoft a lot of flexibility in their direction and development of online services as there are some very well established companies that can make Microsoft very relevant very quickly, for the right price.

It would be a pleasant surprise if Microsoft could erase their consumer failures over the last 5 years. Apple’s iOS has had the same look and feel for the last few years and I don’t think Apple has felt pressure from Google and Android from a “user experience” standpoint. Microsoft, especially with there Metro interface, might be the nudge that Apple needs to evolve their very functional, but somewhat boring, mobile platform.

After all is said and done, what do you think of a Microsoft acquisition of Netflix? Does it make sense? Do you think Microsoft has what it takes to build a comparable ecosystem to Apple, Amazon and Google?

Windows 8 will succeed, but Microsoft could still fail

image courtesy of OnLive

I couldn’t agree more with M.G. Siegler’s post “The Slow Decay of the Microsoft Consumer” over on TechCrunch. He makes a few good points, but this point really got me thinking: “Windows 8 could be better for the company, or it could be worse. The world is drastically different than it was even just three years ago…While Microsoft is going all-in…on their tablet strategy with Windows 8, there’s no indication it will actually work. If it doesn’t that could significantly hurt the Windows Divisions’ numbers.”

Windows 8 will successfully create a “Post-PC” platform for Microsoft by merging their desktop and tablet strategies into a very functional and usable operating system. However, by doing this, Microsoft may have not considered the financial consequences and the impact this strategy will have on a $20 billion dollar per year business.

The current Windows business model is based on consumers paying for Windows on new machines as well as paying for major Windows upgrades. Microsoft also encourages customers to upgrade flavors of Windows, like moving from Windows Home to Windows Home Premium to gain access to new features and functionality. This business model will not work in a Post-PC world because the platforms of the two largest players, namely iOS and Android, are essentially free!

That’s because the platform itself is no longer the revenue generator. The platform is simply the delivery method for revenue generating services like movies, TV shows, music, books, apps and, most of all, advertising. Apple has iTunes/iCloud/iAd and Google has Google Play/Ads/AdMob which are integrated into iOS and Android and that generate billions in revenue. More importantly, if Apple or Google were to add another revenue generating service, they simply provide consumers with a free upgrade of the platform so they can consume that new service.

Microsoft is in a much different position:

  • Microsoft may be able to sway consumers initially to buy into the Windows 8 platform, but Microsoft will not be able to force consumers to pay $199 for future upgrades. Microsoft will need to give more for less to gain on Apple’s 100 million iPad head start!
  • Microsoft is seeing the impact from iOS and Android free upgrades on the Windows Phone platform. Microsoft initially provided Windows Phone 6 customers free upgrades to Windows Phone 7. Now, consumers are demanding those same phones be upgraded to Windows Phone 8 for free. Microsoft is stuck between a rock and a hard place: either upgrade for free and lose millions in revenue or charge for the upgrade and risk losing revenue because customers find Apple and Android a better value.
  • Microsoft must build revenue generating services that Apple and Google already have today. Microsoft has struggled to provide media related services in the past and Google is finding out it’s not as easy as simply releasing a BETA service and hoping people sign up.
  • The numbers below paint a pretty stark picture. Microsoft will need to continually update Windows so that it can compete against Apple and Android and have the flexibility to provide additional revenue generating services to the largest possible audience. However, forcing paid upgrades on consumers will not accomplish this as consumers will simply stay on previous versions, just as desktop consumers are sticking with Windows XP versus moving to Windows 7.
    • Windows
      • Windows 7 – 57%
      • Vista – 8%
      • Windows 2003 – 1%
      • Windows XP – 34%
    • iOS
      • iOS 5 – 74%
      • iOS 4 – 25%
      • iOS 3 – 1%

As M.G Siegler pointed out, Microsoft is “all-in”. I believe Microsoft will succeed in building a very usable and functional post-PC platform that will make for an enjoyable experience, both on the desktop and on tablets. What has me most concerned, is Microsoft’s ability produce revenue generating services to replace the inevitable loss of Windows licensing revenues once customers demand what Apple and Android already provide– free upgrades.

That is my take, what do you think? Will Microsoft be able to charge for upgrades when others don’t? Will Microsoft be able to catch up to the leads they’ve already given to Apple and Google?

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?

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