Creative Networks Announces a Major TCO Study Benchmarking Leading Messaging/Collaboration Systems; Results Show Lower TCO for Microsoft Exchange

Business Wire, Oct 28, 1998

PALO ALTO, Calif.--(BUSINESS WIRE)--Oct. 28, 1998--Creative Networks, Inc. (CNI) announced today its release of "Benchmark TCO: Microsoft Exchange and Lotus Notes/Domino in the Enterprise," the most definitive study ever completed for these market-leading messaging/collaboration systems.

This report establishes the industry baseline for companies to measure their effectiveness against and to make decisions about investing in these technologies. It identifies where Microsoft Exchange and Lotus Notes/Domino are most effective, what the impact on cost of improving services levels is, and quantitative data for comparing in-house operations and maintenance to outsourcing.

"CNI customers want reliable, comprehensive benchmarks to better understand the choices they are making about planning and operating their messaging and collaboration infrastructure and to understand service level requirements and cost/value tradeoffs. Until these systems operate at utility grade service levels, it is even more critical for management to understand the real staffing, operational and maintenance costs," said Nina Burns, president and CEO of CNI.

"The study shows that neither Lotus Notes/Domino, nor Microsoft Exchange are operating at utility grade service levels (better than 99.9 percent). Microsoft Exchange averages 99.7 percent while Notes/Domino average service level is 99.1 percent."

Burns continued, "This study is the culmination of years of research into how to precisely measure TCO and value. The result is that these benchmarks are being used as the standard measure for messaging and collaborative systems, and are moving into other application areas."

CNI conducted 243 interviews of technical staff and end users in 243 organizations using Microsoft Exchange and Lotus Notes/Domino. The study objectives were to determine the costs associated with operating both systems in real-world environments, and with training, migration, application development and other relevant differentiators; and end-user cost savings that accrue from using either system.

Results indicate a pattern of usage that is functionally different for Microsoft Exchange and Lotus Notes/Domino environments. Exchange dominates in everyday communication tasks and is used for a greater variety of tasks, whereas Lotus Notes/Domino is used for more complex tasks associated with information sharing and intranet applications.

The following chart summarizes the TCO for Microsoft Exchange and Lotus Notes/Domino in the critical areas. The report provides extensive detail in each of these areas. -0-

                                  Microsoft         Lotus
Cost Element                       Exchange      Notes/Domino

Hardware and software
 acquisition                       $ 88.10        $ 99.07
System administration and
 management                        $303.63        $265.45
Training                           $ 64.03        $133.89
Application development            $ 28.89        $ 96.10
  Total Direct Costs               $484.65        $594.51

Downtime loss                      $173.52        $354.79
Peer-to-peer support             $2,634.38      $6,480.87
  Total Indirect Costs           $2,807.90      $6,835.66

  Total Direct plus
   Indirect Costs                $3,292.55      $7,430.17

-0-

CNI, a market research and consulting firm, is the leader in identifying and measuring the business value of technology. The company's research programs measure the effectiveness of information technology through tested, proven and extensive cost value methodologies and research. Consulting services help clients build sustainable business value through the application of technology.

CNI pioneered TCO and value analysis for messaging and collaboration systems. Its model and methodologies, which have become the de facto standard for the industry, have been developed, perfected and extended over the last three years from extensive research and consulting work with vendors, enterprise IS/IT departments and TCO experts.

The model's extensibility accommodates benchmarking best practices in areas such as migration services, outsourcing, electronic commerce, knowledge management and other applications. For further information on the company or this release, contact Darcy Fowkes at 650/326-9926.