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PSINet and HP ~ OpenMail as an Outsourced Global Messaging

Written By: P. Hayes
Published On: April 7 2000

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Event Summary

PARIS (BUSINESS WIRE) - Internet Super Carrier PSINet (NASDAQ:PSIX) and Hewlett-Packard Company (NYSE:HWP) announced they will offer hosted, business-class messaging and collaboration e-services. The announcement was made at E-Services World. The new Global Enterprise Messaging Service (GEMS) is scheduled to be available from the end of March from all of PSINet's major European offices and will be extended throughout the world later this year.

Market Impact

While HP OpenMail may have a healthy user base in Europe, the same is not true within the United States. Within the Fortune 1000 companies, 80% have either Lotus Notes or Microsoft Exchange as their primary collaborative messaging system, with another 10% using Novell GroupWise and the remaining 10% sharing a splattering of HP's OpenMail and various flavors of POP servers such as Netscape and Sendmail.

The reason why Europe is the launch site for GEMS is obvious, the service level demand for the archaic collaborative messaging system is ever-present (So is IBM's OS/2 Warp).

The joint European venture for PSINet and Hewlett-Packard makes a great deal of sense. PSINet will provide the hosting, security, and bandwidth, while HP will provide software and all related consulting services. We expect the plan to be a moderate success in Europe, however we have no expectations of success within the United States. Moreover, we believe the offering may never make it to the US due to lack of demand (Probability 75%) .

User Recommendations

If you are a European customer presently using HP's OpenMail product and are looking for an outsourcing solution, we believe you have found it. PSINet is a solid service provider, who, when coupled with HP software and consulting services should shine as an OpenMail Application Service Provider (ASP).

PSINet is only one of the many service providers ready to host your outsourced messaging. Before selecting the PSINet-HP service messaging offering, make sure you factor product functionality and technology into your decision along with product cost. You may find that although PSINet and HP's offering is a good one. However, there may be yet a better one to suit your wallet and corporate messaging needs.

 
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