Microsoft Offers Messaging for a Slower Economy

TechFlash reports: Microsoft CEO Steve Ballmer likes to say the world has gone through an economic reset, shifting to a lower level that will force businesses to make new decisions about how they spend money. Nowhere is that more evident than in how Microsoft is pitching Exchange Server 2010, the new version of its email and messaging server.

The announcement of the product's release this morning focuses as much or more on promised cost savings as it does on the new features. Among other things, it cites a Microsoft-funded study by Forrester Consulting that cites "a payback period of less than six months" for companies that upgrade to the new Exchange 2010, in part because of changes under the hood such as a more efficient method of accessing stored data.

Exchange 2010 also offers new features for end users, such as simplified inbox cleanup tool and a "MailTips" feature that pops up and informs senders when they're about to do something that might not be so smart, such as adding an external recipient to an internal corporate email thread.

"We definitely tried to find that balance between hard IT cost savings plus end-user benefits that typically drive demand," said Chris Capossela, senior vice president of Microsoft's Information Worker business, in a phone interview from Berlin, where Microsoft is holding its Tech-Ed Europe 2009 conference this week.

The release of the new Exchange comes at an interesting moment, not just because of the economy but also because of the rise of cloud computing. Google Apps recently won a high-profile contract to supply cloud-based email service to employees of the City of Los Angeles. Capossela cited studies suggesting that many companies will stick with on-premises servers in the coming years, wanting complete control of their systems. Microsoft is separately offering its Exchange Online service for companies interested in the cloud.

Asked for his take on the broader economy, Capossela noted that the decline in business spending came after the decline in consumer spending as the economy declined a year ago, and the recovery on the business side could similarly trail a consumer-spending recovery in the same way. He noted that PC sales last quarter were better then expected, suggesting that the consumer technology market has begun to recover.