Communication

Presented By Kumar Priyadarshi 09BM8069 Ann Thomas 09BM8025 Some Numbers

 If email was a country, its 1.88 billion users would make it the largest in the world. Bigger than China, bigger than the populations of the USA and European Union combined  294 billion emails are sent each day  13.4 billion: the number of direct marketing dollars that went into email in the US in 2010  $583 billion: The return from that investment on email marketing

 53% of all companies in the world actively block public IM/Chat  45 million licensed users of Lotus Sametime

Reference: IBM Systems Magazine ; Dr.Douglas J. Fiore: School Community Relations No figures older than November 2010 The Big Names

• Hotmail Mail • Yahoo Mail •

Chat • Gtalk [Text, • Windows Live Voice and • Yahoo Messenger Video] •

• Digsby Aggregators • Meebo • How they Run the Business

• Automated email scanning system to push highly targeted ads • Fees for >7 GB storage • Gmail Revenues : Gmail had revenue per 1,000 page views of 6 cents in 2005 which increased to about 30 cents in 2009

Google Share Price : $ 574

Ref: www.trefis.com :Analyzing a product’s impact on the company’s share price (20 Mar 2011) How they Run the Business

• Installable in PCs and over handheld devices such as I-Phone and Nokia N900. • Currently, Microsoft and Yahoo's • Skype had around 443 million webmail services are earning user accounts, which generated revenue by selling premium email around 620 million in revenue accounts and ads. (2009) • $19.99 per year for premium • Business Model of Skype account – Freemium • Yahoo! Messenger - collects – Prepaid credit users charges when a call is made from – Hardware licensing from hardware PC to a Phone; vendors such as Nokia • Windows Live ( Messenger + – Advertising Hotmail) earns $1/user/year How they run the Business

• Meebo – Venture Capital Funding from Sequoia – Advertisements on sharing – Surveys • Digsby – Installing bundled applications like toolbars, homepages, Ad-Stallers, Back-ground Processing Apps; free of ads How they run the Business

• OoVoo – 3 way Video Chat – Video chat with up to six friends, family or colleagues at once. – Phone Calls – Desktop Sharing – Video conference PEST

• accuses China of •Internet enabled •Privacy blocking Gmail handsets in developing • Effect on Language •Username Bans and countries at lower •Ads prices Protests •Family Safe and •Government Monitoring Sensitive •Misuse of Video Chat

Political Economic Social

•Trademark Disputes – •Mobile Devices Googlemail in Germany •Outages and Uptime •VoIP Regulations •Security Threats •Revenues •Loss of Data •Monitoring

Legal Technological Business Communication

• For a big enterprise (15000 employees)

On- Premise Microsoft Email Exchange System Online Gmail $25.18 $20.32 $ 8.47

Reference: Forrester Research Report Should Your Email Live In The Cloud? A Comparative Cost Analysis; 2010 http://www.cio.com/article/474672/Gmail_vs._Traditional_E_Mail_Savings_Adding_Up Costing

Hosted Exchange In House Exchange Google Plan Plan • $50 per user per • $500 per month + • $ 799 License year $6 per user per • Hardware, • $5,000/year month Licenses, Anti- • $13,200/year Spam, Routers, Backup, Maintenance

Then Why Still E-Mail Hosting? • Safety, Backup, Spam Protection, Authentication, Encryption • Uptime. – Gmail Outages – Google promises at least 99.9% uptime for its Premium customers – Nevertheless, it’s a leap of faith for an organization • Reluctance to train employees who have grown used to Outlook The Future – Going Mobile ? • In 2010, the number of visitors to email/chat sites – via PCs - declined 6 % – via mobile devices - up 36 %

• By 2013, mobile phones will overtake PCs as the most common Web access device worldwide. – Total number of PCs in use will reach 1.78 billion – Base of and browser-equipped enhanced phones will exceed 1.82 billion

Reference: Gartner Predictions for IT Usage 2010 and Ahead The India Story

Web Mail Provider Number of users Growth rate Gmail 18 Million 23% Yahoo Mail 16.8 Million 4% Rediff mail 6.25 Million 4% Windows Live mail 2.6 Million 10%

• Business Email Provider (Small Players)  net4  HotDak Mail  123 india • 11 million mobile internet users double since last year • Total internet access via PCs: 52 million Porter Five force Analysis Rivalry among Existing Firms

 Market Share of different Webmail Providers Web Mail Provider Total No. of users Growth Rate Windows Live Hotmail 364 Million -4% Yahoo Mail 280 Million 11% Gmail 193.3 Million 43% AOL Mail 89 Million 19%

Comparison of different Email Providers

http://en.wikipedia.org/wiki/Comparison_of_webmail_providers Porter Five force Analysis Contd. Threat Of New Entrants  Facebook  Stickiness: The amount of time users spend on a site. Facebook stickiness quotient is very high  Convergence: All communication on a single page: Chat, Photo and Video Upload, Email, Social Networking  Trendy: Coolness quotient of facebook .  The growing facebook universe

 Switching Cost to Buyers: Low if Facebook otherwise very high, Low exit barrier, Time to market is very low Porter Five force Analysis Contd. Determinants of Buyer Power  Total no. Of email users: 1400 Million  Switching Cost : Moderate.  Internet users uses more than one e-mail address  Internet users threat of forward integration i.e. Facebook

Threat of Substitute Products  Substitute Products: Social Media (LinkedIn, Facebook, Twitter)  Relative quality of substitute: security, Interface, convergence  Relative Price of Substitute:  Switching cost to Internet users: Business Users: Very High Normal Users: Moderate Porter Five force Analysis Contd. Determinants of Supplier Power

 Resources: IT infrastructure, easily available at competitive price  Programmers: easily available.  Need new innovative ideas for good products and being a step ahead in market  Suppliers: Mail2world Inc: designs, delivers, and supports a suite of business-class, Web based e-mail and collaboration services. Opportunities and Threats Opportunities  Cloud Adoption Collaboration applications such as email, chat , File Sharing on Cloud  Promotional Email Delivery : Mails to priority Inbox  Privacy Issues with Social Networks Threats  Outage time  Security of email leaks  Archive Maintenance Electronic communications of some employees in financial services and medical-related businesses are required by law to be archived for years, and data handled by those users must be secured. Future Future Trends  Voice chat and video chat on Social Networking  Digitally signed Voice chat/Video Chat  Extensive use of Video chat in Developing Nations  Checkups via Video Chat e.g. Project Hope: Mobile E office in Rural New Mexico  Use of remote stethoscope creates a digital audio file that can be saved and even shared with the patient, so she, too, can hear what the doctor is listening to.  Mobile Video Chat  Virtual Reality during chatting Entry into Webmail

• Increasing sophistication • Small webmail players can no longer compete • A good web-based user-interface is a one time expense, but still small players can't afford it • Also, big storage quotas require losing money at least initially, and small players typically don't have deep pockets to take that route. Thank You

Kumar Priyadarshi Ann Thomas Vinod Gupta School of Management IIT Kharagpur