Competitive Assessment of Email applications June 2018 Ankit Podder, Analyst IBM Collaboration and Talent Solutions MD&I

Summary Market Trends Buyer Behavior Competition Email application market has slow growth due to shift from traditional collaboration via Email to emerging technologies Adoption of cloud and usage of mobile devices have dramatically changed the way email applications are deployed Significant shift from using email on desktop to mobile devices; a large portion of email opens through mobile devices Large majority of users continue to use Email for collaboration on a daily basis Email application is considered as a mission-critical business application by business users Highly competitive market due to advancement in technology and adoption of cloud IBM positioned for Email application after Microsoft and Google 1 1 1 2 2 2 3 Source : MD&I Analysis

Market Dynamics

Emerging Trends: Significant shift in traditional email usage, from desktop to mobile devices and webmail Shift from traditional collaboration via email to emerging areas like collaboration platforms, social networking and team messaging. New entrants are capturing the market with their single technology focus. The adoption of cloud and use of mobile devices have dramatically changed how email applications are deployed There is a significant shift from using email on desktop to using it on mobile devices. Now, a large percentage of Email is opened through mobile devices, and another large percentage is opened via webmail. The two methods combine to an overwhelming majority, compared to access via desktop. Large majority of the respondents to recent survey use Email for collaboration, followed by Calendar applications, on a daily basis. Despite advancements in technology and the use of modern tools, Email is still considered a mission- critical business application and has become a norm in modern business.

Competitive Landscape: Email Application market is highly competitive Email Application Providers Email applications are a mission-critical business application and have become the norm for businesses. The confluence of two major technology trends - - the availability of cloud applications and marketplaces, and the ubiquity and availability of mobile devices - - has dramatically changed the way email is deployed and how it is accessed. A recent analyst survey shows that a good portion of organizations still run email applications either on-premises or in a private cloud (hosted or on-premise) due to major concerns around security and privacy as well as service levels of providers With advancements in technology, security, and adoption of cloud, organizations are considering vendors with email on cloud along with additional capabilities and tools

Advantages: Strong loyalty of satisfied customers and passionate Community of developers and partners Organizations can use Domino more easily within their Microsoft investments. Integration with Connections and Watson Workspace to continue to deliver the value of applications Future investment protection and no end date of support Global presence through Channel partners Integrates seamlessly with Microsoft Ecosystem Invigorated focus for new app development Cost effectiveness - - driving down the costs of administration and reducing dev-ops complexity Lowest cost of ownership vs competition services offers

Competitive Information: SWOT Analysis - Microsoft Office 365 Position and momentum - Microsoft owns overwhelming majority of the enterprise office suite market Broad, feature-rich offering - Office 365 provides more than 15 different services and continues to reguarly expand its portfolio Organizational commitment - Microsoft has committed resources to incentivizing its sales force and increasing the strength of its partner network Availability of Implementation and Development Skills Strengths All-or-Nothing Approach Results in Low Value for Light Users - Office 365 provides a large bundle of services, only a few of which most organizations want Functional Gaps - Compared with the on-premises software users are accustomed to, Office 365 sometimes falls short Complexity - There is a lack of expected integration in the product line, Governance and data handling inconsistencies Migration is challenging for clients moving to Office 365 Weakness The workplace is in a transition to New Ways of Work that provide a good opportunity for Office 365 Synergies With Other Microsoft Products Can Be Further Exploited Applying Advanced Technology Assets - Cortana and Delve are the most visible applications of advanced technology to the productivity space Opportunity Organizations get into Office 365 for all sorts of reasons and have myriad expectations of what it can do for them New Competitive Field Offers New Chance to Competitors Legacy of On-Premises Versions of the Suite Anchors Long-Term Customers Threats

Strengths Weakness Opportunity Threats Competitive Information: SWOT Analysis - SharePoint Online & SharePoint Server 2016 Hybrid capabilities allow organizations to integrate a number of functions to both on-premises and cloud-based content SharePoint team sites support permanent and short-lived collaboration which adds related collaboration tools such as team chat, calendar and planner Large number of connectors are available for third-party SaaS and on- premises applications Content services provide extensive content management capabilities including document management, enabling users to create, collect, and classify documents Strengths Records management capabilities do not include any certifications. ; likely a problem for organizations in regulated industries Weakness Microsoft can increase its ECM market share in the cloud market SharePoint accesses ECM functionality and provides organizations that have been prohibited from implementing ECM platforms with the opportunity to deploy ECM capabilities Opportunity Take-up of ECM in the cloud has been slow to date - A major threat to ECM vendors wanting to increase their share of the cloud market is the reluctance of organizations to adopt ECM in the cloud Competition is stiff in the ECM market - A large number of ECM vendors provide cloud-based services, with little to choose from between them in terms of functionality. Threats

Competitive Information: SWOT Analysis – Salesforce.com Good brand value of its enterprise collaboration solution, Chatter Large investment in R&D Strong customer base Strengths Major focus is on CRM solution, and therefore lacks flexibility in serving customer Weakness Emerging countries such as India and China in Asia Pacific are expected to offer significant opportunities Strategic partnership is expected to open new avenue for growth. For instance, Salesforce and Cisco teamed up to leverage each other’s technical capability to develop enhanced solution Acquisition of Quip is expected to strengthen the company’s market penetration Opportunity Presence of large player such as Microsoft, Cisco, and IBM Cyber threats pose serious concerns Demand for dynamic technological frameworks requires timely upgradation of products and services to remain competitive in the market Threats