"Notes/Domino increased its share of the integrated collaborative environments market last year"

August 19 2007

InternetNews.com's coverage of the Notes/Domino 8 release last week had some interesting stuff in it on Lotus's relevant position in the market.  The reporter seems to have talked to several analysts about market share, each coming up with different answers.

First, there's Gartner:

Gartner estimates Microsoft's Outlook and Exchange software is used in approximately 62 percent of all corporate seats compared to just 26 percent for Notes and Domino.
These numbers are from a survey which Gartner conducted in English on e-rewards.com late in 2006.  Only 400 responses were counted, from seven (or less?) countries, none of which were in Asia (for example).  And they differ wildly from Gartner's own Dataquest numbers, which are based on a methodology used for measuring market share in all software categories.  Gartner Dataquest has just published their 2006 numbers, which for some reason, were not provided to this reporter.  Anyway, if you want more background on this Gartner survey, which seems to come up a lot in customer engagements, contact me offline.

Then there's Radicati, with an apples-to-oranges comparison of Notes/Domino users to Outlook users (whether or not they are in a corporate Exchange environment).  Ah well.

But the important bit comes next in the article.  IDC, whose analysis is so trusted by the industry that Microsoft has published the previous two IDC e-mail market share reports on microsoft.com/exchange, is cited (emphasis mine):
Penny Scharfman, IBM's program director for Lotus Notes and Domino products, said IBM isn't ready to cede to Microsoft the lion's share of the market, which is projected to grow to more than 1.5 billion corporate e-mail accounts by 2011. She said IBM is actually gaining on Microsoft.

"We have totally turned that around," she told Internetnews.com. "We're maintaining a very strong second place. We'll win some of the competitive accounts (versus Microsoft). What it's going to take is for us to show how serious we are and how committed we are to the long term."

IDC issued a report this month that illustrates Notes/Domino increased its share of the integrated collaborative environments market last year to 40 percent, up from 39 percent in 2005. Outlook/Exchange's share of the $2.4 billion market slipped to 51 percent from 53 percent over that same period.
Yes, you read that right.  According to IDC, during 2006, IBM Lotus Notes/Domino gained share, while Microsoft Outlook/Exchange declined.  

Guess that 11 consecutive quarter track record of growth for Notes/Domino is reflective of the broader market after all!  What great momentum to carry forward into the Notes/Domino 8 release!

Ed Brill Highland Park, IL USA Category:  Lotus  Add/View Comments [36]

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  1. 1  Bruce Elgort http://www.TakingNotesPodcast.com | 8/19/2007 8:42:10 PM

    Great news Ed! For a person whose day job it is to manage an Exchange environment I can "feel" the tides changing even with the hardcore Exchange guys. They are very interested in something new and more than just "mail" Can you say Lotus Notes 8?

    I have also seen tons more hits on my blog and podcast sites lately that come from people who don't know much about Notes/Domino wanting to learn more. While it's not scientific my gut tells me that people are wanting to learn more about Notes and Domino.

    Congrats again 8....lots more podcasts and blog posts to come about all of the new exciting stuff in 8.

  1. 2  Ed Brill http://www.edbrill.com | 8/19/2007 9:01:00 PM

    Thanks, Bruce!

  1. 3  Randall Shimizu  | 8/20/2007 1:43:29 AM

    This months IDC report is a good start for Notes 8 Ed...

  1. 4  Axel  | 8/20/2007 4:09:59 AM

    I guess the new interest comes more from Eclipse guys. With Expeditor/Domino 8 Lotus gets a never seen coverage in the blogs read by those people. From the people I talked with, students here appeared to get quite a bit of exposure to Eclipse RCP/plug-in development. I think those people could be integrated quite efectively in Expeditor development.

  1. 5  David Russell  | 8/20/2007 6:30:04 AM

    I have a list of the Notes naysayers/Exchange worshipers, in my work environment, stored in a safe in my office; I'll brave opening it today and email this IDC report to them! I can feel the tide turning too.

  1. 6  Jay Canfield http://www.dustmen.net | 8/20/2007 7:44:19 AM

    I think it's also largely due to IBM embracing the open source community instead of shunning them (M$). I know a lot of linux shops that are looking at domino now because there is a linux client. Also with the free websphere seats, eclipse based model, and DB2 support there has been a monumental step forward, unlike exchange which has been largely the same for several releases. My argument is: Why have 5 M$ servers when 1 domino server will do it all?

  1. 7  Charles Robinson http://cubert-codepoet.blogspot.com | 8/20/2007 9:01:41 AM

    @6 - Good luck running Domino, DB2 and Webpshere on the same box. :-)

  1. 8  Kevin Mort  | 8/20/2007 9:18:52 AM

    @7 - Same box or same OS instance? i5/OS could indeed run it all on one box under one OS instance with excellent performance.

    Windows...notsomuch. Linux or some UNIX variant...I think possibly.

    :-)

  1. 9  Jay Canfield http://www.dustmen.net | 8/20/2007 9:30:30 AM

    @7

    I wrote that badly I guess.

    I meant to make the comparison of Sametime and the Domino functionality compared to say: Sharepoint, Live Communication, Exchange, etc. where you need to most often (for any large org like mine) run them on separate hardware.

    Geez can't even compliment the product any more. :)

  1. 10  Charles Robinson http://cubert-codepoet.blogspot.com | 8/20/2007 11:06:46 AM

    @9 - No worries, I really didn't mean to give you hard time. Domino offers more out of the box functionality than anything in the MS portfolio. :-)

  1. 11  Drew Ingersoll  | 8/20/2007 12:23:19 PM

    @7 - that box would be called an i5 server

  1. 12  Charles Robinson http://cubert-codepoet.blogspot.com | 8/20/2007 12:46:41 PM

    @8/11 - I'm very familiar with the capabilities of the iSeries, having run Domino on one for a number of years. That wasn't what Jay was referring to, though.

  1. 13  Keith Brooks http://lotustech.blogspot.com | 8/20/2007 12:47:45 PM

    If you were small enough you could also run your BES on the domino/st box, now if astrix will also run on it, then I can have everything for a Small office on one server.

    8 in 08 is Gr8

  1. 14  Hans Bornich  | 8/20/2007 1:39:23 PM

    @8 - Yes the i5 is a great box, that's why I'm still in shock about IBMs plan to not provide DB2 access for Domino on i5/OS.

    Rob Ingram: "There are no current plans to provide this feature on iSeries".

    Comment 2 at { Link }

    I'm aware that DB2 on i5/OS is not the same as DB2 on other platforms - but DB2 being native on i5/OS made Domino with DB2 on i5 an obvious choice. What a shame it isn't going to happen...

  1. 15  Keith Brooks http://lotustech.blogspot.com | 8/20/2007 1:53:25 PM

    Can someone verify that ST 7.5.1 will or will not run on a R8 server? As I just realized I was going to do this for a client and recall seeing something recently that stated you can not do this.

  1. 16  John Head http://www.johndavidhead.com | 8/20/2007 2:18:55 PM

    It will not Keith ... requires Domino 7.0.X. Sametime 8 will work on a Domino 8 server.

  1. 17  Randy Shimizu  | 8/20/2007 3:27:39 PM

    @6 Microsoft's strategy with Exchange is add another server. This probably how Microsoft got ahead of Notes is by constantly requiring customers to buy more servers. It's a win win solution for MS. The customer buys another Windows and Exchange license.

  1. 18  Dan Holzrichter  | 8/20/2007 5:18:22 PM

    The number of servers that keep getting added to an exchange rollout is definitely a pain. You can combine all of the roles but one on the same box I think (all but the edge server which uses it's own copy of AD.) I'm not sure how it scales when you this. FWIW, they don't support Vmware ESX either... (is domino officially supported on ESX yet?). I think they will be supporting virtualization on their POS virtualization system in the future.

  1. 19  Charles Robinson http://cubert-codepoet.blogspot.com | 8/20/2007 7:03:28 PM

    @18 - According to: { Link } "IBM's Remote Technical Support policy statement for VMware® environments: IBM Remote Technical Support will accept usage/defect-related service requests for IBM SWG IPLA products running in a VMware® ESX Server or VMware® Server environment. If it appears that the problem is unique to the VMware® environment, IBM may require the client to recreate the problem in a non-VMware® environment. If the client has purchased an IBM ServicePac Agreement® (for VMware®), the IBM VMware® support team can assist in reproducing the problem in accordance with the terms of that agreement."

  1. 20  Keith Brooks http://lotustech.blogspot.com | 8/20/2007 7:13:19 PM

    John,

    Begging the question....ST 8 is due when :-)

    ?

  1. 21  David Bell  | 8/20/2007 7:21:23 PM

    @17,18 - And that only gets worse with Exch 2007 which supports fewer users per server than 2003. The memory resource needs are pretty ridiculous.

    See this table from a recent Windows IT Pro article on RAM calculations for 100 mailbox users:

    { Link }

    The full article is here (memory is on page 2):

    { Link }

  1. 22  Bruce Elgort http://www.bruceelgort.com | 8/20/2007 8:16:09 PM

    Is Sametime 8 in our near future? That's an interesting question which should be asked of Adam Gartenberg and not a non IBM employee. Adam?

  1. 23  Ian Randall  | 8/20/2007 8:45:01 PM

    Congratulations to IBM/Lotus and to you Ed. This report seems to vindicate that your strategy is working.

    Interesting that Peter de Hass has not commented yet.

  1. 24  Ed Brill http://www.edbrill.com | 8/20/2007 10:33:33 PM

    Suggested topic for Peter (or others from that side of the divide) -- what appears to be Microsoft's first share decline ever in this market.

  1. 25  Dave Madison  | 8/20/2007 10:36:08 PM

    @18 Wouldn't that assume that Peter is still reading? Maybe he got bored.

  1. 26  Dan Holzrichter  | 8/20/2007 11:36:54 PM

    Not sure if the article mentions it but there are additional requirements for RAM if you use a lot of storage groups. For those of us with really large domino servers this can add up to quite a bit extra. { Link }

    I guess it's a good thing ram is getting cheap.

    What's the time frame for 64 bit R8? We don't need RAM like Exchange 20007, but being able to use a few more gigs would be a really good thing.

  1. 27  Randall Shimizu  | 8/21/2007 1:06:09 AM

    Is IBM going to release the August IDC report you mentioned to partners or can you release some quotes from the report...??

    Thanks

    Randy

  1. 28  Henry Ferlauto http://www.geniusinside.com | 8/21/2007 4:18:56 AM

    From an ISV perspective, I can say that we are seeing a slight increase in the number of leads from new Lotus Notes shops; and a very definitive increase in the "SMB" market.

    Everything is trending in a positive direction.

  1. 29  Darren http://www.dadams.co.uk | 8/21/2007 4:56:49 AM

    This discussion reminds me of something I consider when I'm reminded that Exchange overtook Domino and became the market leader. The question being "does that make it a better product" or "does the customer realise benefits because of that"? What I'm trying to say is that if someone tells you company x moved to Exchange the issue is not "oh, a few more users for Microsoft" but should be "was it a good move?". If in the process of making a few users happy because they get Outlook they decrease the mail up-time, increase the number of servers and increase the cost of ownership (and sign up for a land mine-riddled 'upgrade' path) then where's the victory?

    In summary, it's not about how many users, it's about how many companies have improved their lot and how many have taken on extra pain. When we talk to customers who are considering a move to Exchange it's all about a) Outlook and b) because they think they're going to get free / cheap Exchange licenses. When it's the other way round it's because they're fed up with Exchange's shortcomings or want to improve collaboration and business processes. A big difference in attitude and this ISN'T illustrated by market share figures alone... or perhaps IDC's figures are starting to tell a story.

  1. 30  Kevin Mort  | 8/21/2007 7:25:39 AM

    @12 - Agreed Charles but only after the fact. Come on, you took the bait based on what he originally posted as well. : )

    @14 - Hans, you're talking about NSFDB2. Let's be clear on that. You have the ability to reference/access i5/OS DB2 data from Domino today, and have for quite some time.

    In recent days I have heard from customers there seems to be more interest in NSFDB2 than I thought there was. Perhaps Lotus will change their minds on this. Who knows.

    I still say though we have to be clear about what you're referring to.

  1. 31  Jay Canfield http://www.dustmen.net | 8/21/2007 8:21:33 AM

    @18/19

    Domino runs great in an ESX environment. My domino boxes boot in less than 15 seconds to a fully running state.

    In the last couple months I def. have become an ESX fanboy.

  1. 32  Ed Brill  http://www.edbrill.com | 8/21/2007 8:50:31 AM

    @25 you're still here...I'm sure Peter is, too.

  1. 33  David Racicot  | 8/21/2007 9:48:10 AM

    @13. We were just discussing next year's upgrade plan and we are picking Aug 8, 2008 (08/08/08) for the R8 update! It's a Friday too! I'm thinking perhaps we could start some kind of global R8 update movement? :-)

  1. 34  Nathan T. Freeman http://nathan.lotus911.com | 8/21/2007 2:50:06 PM

    @33 - Why would I want to wait a year for the update?

  1. 35  David Racicot  | 8/22/2007 10:41:39 AM

    @34. Large client that is dependant on a long budget cycle. Currently on 7.0.2. Will likely take that long to get approval. On the other hand a smaller client is going to upgrade a web server right away 'cause they don't have to go through the red tape.