Microsoft Online Services’ SharePoint, Exchange Show Where We are Headed
November 17th, 2008In recent days, Microsoft has begun increasing their presence in the competitive arena of ‘Hosted’ or ‘On Demand’ services offerings. In essence, Microsoft Online Services is providing products that we are accustomed to purchasing and installing on our Windows-based Servers and PC’s. The latest example is the hosted version of Microsoft Exchange Server and Microsoft SharePoint, server products that are being offering on a ‘Per-User-Per-Month’ basis. Why should you care? What does this mean to you and your business?
Without a doubt, the ‘On Demand’ services model will be the only way that software is delivered in the future. Just how soon this will be the case I cannot predict. There are examples of On Demand software companies, such as SalesForce.com and Oracle’s NetSuite, that have proven that this model can be used successfully. They have essentially paved the way for companies like Microsoft with their SharePoint and Exchange products. The introduction of these products through Microsoft Online Services portends that the future of our computing lives is going to change permanently relatively soon.
There are a number of reasons that software vendors would want to deliver your software via a controlled ‘Hosted’ environment. There are also reasons as to why you would want your software ‘Hosted’ as well as some compelling reasons for retaining the ‘Purchase to Own’ model that we currently are accustomed to:
The costs of both developing and delivery of new versions of software like SharePoint or Exchange drops considerably when offered via the Internet. This drop in expenses arises from no longer having to develop for a considerable number of software platforms. The software company controls the delivery environment that users log onto. Additional cost savings are realized because the company no longer needs to create the packaging, outsource duplication services or distribute the products physically. Piracy is also eliminated, something that has been a massive issue for Microsoft, costing them potential billions in lost legitimate revenue and legal fees.
For the business owner, the delivery of software upgrades for programs like SharePoint or Exchange no longer requires the IT service firm to incur billable charges to deploy such upgrades. Thus, hosted upgrades save money and keeps the software versions uniform throughout the organization. However, if an Internet connection is down then the staff productivity can be affected negatively.
Whether you embrace the coming change to your computing future or not, one thing that you can be sure of is that it is coming. Whether such a change is merely a fad or a permanent return to the days of the mainframe computing environment is moot at this juncture. With Microsoft Online Services’ hosted versions of SharePoint and Exchange, we see that this change is rapidly upon us. Enjoy the last versions of software that you can purchase and install because those days are going to come to an end in the not-too-distant future.






