Why Big Business Is Moving To Cloud E-mail

An examination of why many CIOs in big corporations are considering hosted services when they next upgrade their companies' e-mail systems. Should SMBs follow their lead?

"E-mail is hot again. Major vendors, from Microsoft and Google to IBM and Cisco, are vying to provide this venerable communications application. While Microsoft Exchange is the on-premises champ, e-mail delivered as an online service resets the competition, as customers large and small look to reduce costs and eliminate operational headaches.

The competition has just started. Of the roughly 996 million business mailboxes worldwide, IDC estimates, only 2%--20 million--were software as a service in 2009. But when it comes time for companies to upgrade their e-mail, they must consider SaaS options. GlaxoSmithKline, Coca-Cola Enterprises, Panasonic, and the city of Los Angeles are among the jumbo accounts--tens of thousands of employees--that have moved their e-mail to the cloud."