Microsoft Exchange and Outlook Dominate E-mail Market

Radicati: in-depth analysis of current and forecasted MS Exchange installed base, with extensive breakouts by version,

business size and region.

Microsoft Exchange currently commands a 31% installed base market share and a 52% revenue market share of the corporate insourced messaging software market. The next version of Exchange, called Exchange 2007, is expected to be

released in early 2007. Microsoft is also currently beta testing a hosted e-mail service

called Office Live.

Microsoft has aggressively expanded its reach into the hosted e-mail market since 2003,

and we expect that Microsoft’s revenue in this market will grow at an average annual rate

of 25% over the next four years.

Microsoft leads the e-mail client market with Outlook, Outlook Express and Outlook

Web Access. Uptake for Outlook Mobile, the company’s e-mail client for mobile

devices has also been strong, due to increased demand for smartphones.

Microsoft

Exchange and Outlook Analysis, 2006-2010

Publ 20060522