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The Pros and Cons of Hosted E-Mail



January 12, 2009 By

Hosted e-mail is huge worldwide and will stay that way for the foreseeable future, according to a report released by The Radicati Group, a company that focuses on market trends in messaging and collaboration.

In an August 2008 document, the company forecasted a 40 percent growth in hosted e-mail seats around the globe between 2008 and 2012. The number of hosted e-mail seats was 1.6 billion in 2008 and was expected to grow by 9 percent annually for four more years.

The report classified hosting providers as those who hosted business e-mail for companies with up to 1,000 mailboxes, managed business e-mail for large enterprise, and Web-based e-mail like Yahoo or Hotmail that's mostly used by consumers.

What does this mean for government? More opportunities to cut costs and survive in a flagging economy.

"We were going to spend $4 million to deploy an enterprise intranet, and I decided not to go with that, and I moved forward with Google Apps as our intranet solution," said Vivek Kundra, chief technology officer of Washington, D.C. "So we were able to solve that problem for half a million dollars what would have cost us $4 million, so that's $3.5 million savings right off the top there."


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