Practical IT Research that Drives Measurable Results Collaboration and Desktop Productivity Software Survey: Microsoft Dominates both Markets 1Info-Tech

Practical IT Research that Drives Measurable Results

Collaboration and Desktop Productivity Software Survey: Microsoft Dominates

both Markets

1Info-Tech Research Group

Executive Summary

Info-Tech Research Group 2

Info-Tech recently surveyed our panelists’ experiences with Desktop Productivity and Collaboration software (click here for more details). This document highlights the more important findings of the study.

Key findings from the survey include:

– Microsoft Office dominates the market and will continue to do so. Users of alternative suites have no choice but to support Microsoft file formats.

– Software Assurance (SA) coverage is still prevalent amongst Office users. • If you are currently on 2003 and plan an upgrade to 2010, keep SA

coverage until 2010 is released. However, if you are not currently on SA and only upgrade every 5-6 years, do not purchase your licenses with SA coverage.

– Most organizations will have Microsoft SharePoint deployed, even if complimented by collaboration platforms from other vendors.

– Integration is the key consideration for selection and deployment of collaboration platforms.

http://www.infotech.com/about/panel

Productivity

Where are

they?

Are they satisfied?

Where are they

going?

How are they

getting there?

Collaboration

Where are they?

How did they get there?

Where are they

going?

Why are they going

there?

Appendix Demographics


• Regardless of the reason to switch,

many organizations experience

formatting issues when moving

between productivity suites and even

between Microsoft Office versions

either within their organization or with

their customers.

• Take care to ensure that the recipient

of any document is able to view it

correctly.

Only 1% of panelists in this study are not using Microsoft Office, and they made that decision because of cost.

If your organization is not amongst the 99% currently using Microsoft’s Productivity Suite, be prepared to

convert your files.

N = 166

N = 4

OpenOffice.org1%

Microsoft Office XP or

earlier13%

Microsoft Office 2003

44%


42%

Version of Microsoft Office Currently Used Primarily

25%

75%

Primary Motivation to Choose an Alternative to Microsoft Office

Features

Cost

OpenOffice.org may be free, but it is not right for most organizations.

For OpenOffice.org Against OpenOffice.org“Only our Finance team needs real Office app capacity, such as advanced Excel abilities. Beyond that, most people use 3% of Word, and 10% of Excel. Do you really need Excel to sort or keep information in a "neat" format?” Director at a large Wholesale/Retail organization

“Free or not, productivity cannot go backwards. There is greater comfort in the value to be obtained from a ‘paid for’ suite like MS Office due to its document compatibility and transferability, skills familiarity, backend integration options, functional richness. OpenOffice would need greater market share and strategic partnerships to change this.”Manager at a small Agricultural organization

“Now that OpenOffice features and functionalities are very much comparable to MS office, most organizations will be carefully looking at the pros and cons and like mine will decide at least in part to deploy OpenOffice.” Supervisor at a large Manufacturing organization

“ ‘Free’ is only the ticket price, not the TCO. The TCO of OpenOffice and much open source is higher than commercial packages. So continue to buy commercial packages because TCO is lower, development investment is higher, functionality is higher, inter-operability is higher. ”Manager at a small Business Services organization

“90% of users probably only use 10% of the total functionality on a regular basis so why pay for the 90% that you hardly ever use?”Manager at a mid-sized Information organization

“In a nutshell, resistance is futile. We looked hard at OpenOffice, or just upgrading to the latest version of Corel, but choosing something other than MS Office is like swimming upstream. We needed compatibility with other applications that integrate with Word and ease of sharing documents with other agencies. Availability of employees in labor market who are already skilled, and availability of training resources, was also a factor. Less of a factor, but it helps justify the cost, is that MS Office is more feature-rich than OpenOffice, which is important for some of our power-users.”Director of a large Public Service organization

Why continue to pay for office productivity software when OpenOffice.org is free?

Productivity

Where are they?

Where are they

going?

How are they

getting there?

Are they

satisfied?

Collaboration

Where are they?


Where are they

going?

Why are they going

there?



• That being said, many organizations

feel that until OpenOffice.org gains

increased market share, they have

little choice but to use Microsoft’s

productivity software due to

integration with other applications,

existing agreements, and

standardization in business.

No one is particularly happy with their current productivity suite.

There is no difference in the likelihood an organization will recommend their current productivity suite.

How to read this graph

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

OpenOffice.org Microsoft Office XP or Earlier



N = 163

Likelihood the Product Will be Recommended

Productivity

Where are they?

Are they satisfied?

Where are they

going?

How are they

getting there?

Collaboration

Where are they?


Where are they

going?

Why are they going

there?



• Office 2007 and Office 2010 use a different

standard file format (Open XML) than previous

versions of Office, and we expect Open XML to be

the default format used by organizations who

have migrated to 2007 and beyond.

• While conversion plug-ins are available, there can

still be issues, primarily with formatting and color

schemes, when switching between versions.

• 29% of organizations who are currently using

Microsoft Office 2003 or earlier are planning to

skip Office 2007.

• 100% of organizations who are planning to move

from an Office product to another platform (such

as OpenOffice.org) are currently using 2003 or

earlier.

85% of Microsoft Office users expect to be using 2007 or 2010 in the next 18 months.

Prepare to face compatibility issues with external documents if you are not using Office 2007 or 2010 within

the next 18 months.

N = 164

Another platform

1%

Microsoft Office XP or

earlier5%


9%


33%


52%

Version of Microsoft Office Expected to be Used in the Next 18 Months

Productivity

Where are they?

Are they satisfied?

Where are they

going?

How are they

getting there?

Collaboration

Where are they?


Where are they

going?

Why are they going

there?


However, if you are not currently on SA and only upgrade every 5-6 years, SA may not be worth it.


• 42% of organizations who are upgrading have

software assurance coverage.

• SA coverage – which costs about 29% of the

desktop license price annually - enables

organizations to upgrade their licenses to the

most current product available.

• Organizations that are facing an SA renewal

prior to the release of a product and plan to

upgrade to that product can renew their

agreement for 1 year or 3 years. However, the 1

year renewal option is only available once.

• Organizations that had a SA agreement that

lapsed while Office 2007 was available still have

upgrade rights as they live on past the

agreement term.

If you are on 2003 and planning an upgrade to 2010, stay on Software Assurance (SA) coverage until 2010 is

released.

N = 96

Upgrade rights are earned when the product is released. The organization

can then upgrade at any point in time – even if their agreement lapses before

they use the upgrade.

Own through Lapsed

Software Assurance

2%

Own through Current

Software Assurance

42%

Purchase through Retail

or OEM7%

Purchase through Current Volume

Licensing Agreement

31%

Purchase through NEW

Volume Licensing

Agreement, 14%

Not Sure4%

Planned Method of Payment for new Microsoft Office Licenses


• A whopping 85% of respondents who

have decided how they will deploy

Microsoft Office are planning to deploy

On-Premise.

• However, look for opportunities to

deploy SaaS desktop productivity

applications in a mixed, hybrid

environment, for casual process-

oriented workers, in order to reduce

the cost to maintain the desktop.

Our clients are not embracing SaaS yet for productivity software.

Wait for Software-as-a-Service to become more mainstream for productivity software before committing.

N = 96

Not Sure7% Hybrid /

Cross-Premise

Deployment9%

On-Demand/Saa

S4%

On-Premise79%

Planned Microsoft Office Deployment Method

Collaboration

Where are

they?


Where are they

going?

Why are they going

there?

Productivity

Where are they?

Are they satisfied?

Where are they

going?

How are they

getting there?



• Microsoft Office SharePoint Server and

Microsoft Windows SharePoint Services

are the front runners with 34% and

19% of respondents using them.

75% of respondents are using a collaboration platform to enhance employee and customer interaction.

Enterprise Collaboration is here, but it's a Microsoft game.

“We are now based in the US and the UK, so this has helped us a lot.”

“Our collaboration platform has increased our effectiveness by eliminating spreadsheets and emails as a means of communicating”

“Our collaboration platform has resulted in consistent up-to-date information across all team members”

“We are still waiting for that one benefit. I believe the team that lead the rollout missed an effective planning step that should have included our user community to explain the intent and gather feedback.”

Panelist’s Experience

1%

1%

1%

1%

1%

1%

2%

3%

4%

9%

19%

25%

34%

0% 5% 10% 15% 20% 25% 30% 35% 40%

EMC Documentum CenterStage

Jive Software SBS

Leverage Software

Novell Teaming

Telligent

Drupal

Not sure

Open Text

IBM Lotus Quickr

Other

Microsoft Windows SharePoint Services (WSS)

None

Microsoft Office SharePoint Server (MOSS)

N = 159

Collaboration Platform Currently in Use

Productivity

Where are they?

Are they satisfied?

Where are they

going?

How are they

getting there?

Collaboration

Where are they?


Where are they

going?

Why are they going

there?




• Overall, integration capability was the most

important factor when choosing a collaboration

platform as it ensures maximum contextual

collaboration capabilities for end users.

• The reason it is so important is because

increased integration results in increased use,

and user uptake is usually the biggest

challenge experienced with collaboration tools.

• While 66% of respondents had more than

one criteria that was most important to their

collaboration platform selection decision, 31%

of those who only rated one criteria as the

most important said that it was cost.

Integration capabilities and cost were the important factors used when choosing a collaboration platform.

When selecting your collaboration platform, ensure that it has the capability to integrate with your existing tools.

N = 115

N = 36

Collaboration Features

11%

Content Features

8%

Cost31%

Delivery Options

3%

Ease of Deployment

11%

Integration Capabilities

25%

Vendor Reputation

11%

Single Most Important Selection Criteria

0% 20% 40% 60% 80% 100%

Delivery OptionsEase of Deployment

Vendor Reputation/StabilityCost

Content FeaturesCollaboration FeaturesIntegration Capabilities

Importance of Selection Criteria Used to Choose Current Collaboration Platform

Most important Criteria Important Not Important Least Important Criteria

Productivity

Where are they?

Are they satisfied?

Where are they

going?

How are they

getting there?

Collaboration

Where are they?


Where are they

going?

Why are they going

there?



• Organizations who are currently using Open

Text are upgrading more than MOSS or WSS

users.

• Info-Tech believes this is due to the broad and

often redundant Open Text product portfolio,

resulting from an aggressive acquisition

strategy over the past few years. Open Text

users are still trying to choose the right

products from the confusing Open Text

portfolio.

• Organizations who are currently using WSS

are more likely to be changing products (not

just version) in the next 18 months than

organizations using MOSS.

58% of respondents will be upgrading their collaboration platform in the next 18 months.

Organizations are upgrading business collaboration software to keep pace with current personal collaboration

tools.

1%

1%

1%

1%

1%

2%

3%

4%

8%

10%

11%

12%

20%

25%

0% 5% 10% 15% 20% 25% 30%

Zoho

Novell Teaming

Jive Software SBS

EMC Documentum CenterStage

Drupal

Open Text

Microsoft Windows SharePoint Services 4.0 (Foundation 2010)

IBM Lotus Quickr

Other

None

Microsoft Windows SharePoint Services (WSS 3.0 or earlier)

Not sure

Microsoft Office SharePoint Server (MOSS 2007 or earlier)

Microsoft SharePoint Server 2010 (MOSS)

N = 157

Expected Collaboration Platform in the Next 18 months


• In 2007, 43% of panelists surveyed

were using WSS. That has fallen to 19%

in 2009, and is expected to fall to 15%

in the next 18 months.

• On the other hand, while use of MOSS

has dipped from 37% in 2007 to 34% in

2009, it is expected to rise to 46% in

the next 18 months.

• While many organizations started out

using WSS, many came to realize that

much of the needed functionality

users expert are only available

through the paid for SharePoint

Server product.

Relative usage of WSS (free download with Windows Server) has fallen over the last 2 years, and is expected to continue to fall.

Microsoft's try it for free strategy has succeeded. WSS is an effective pull through for MOSS.

Note: WSS 4.0 is also called Foundation 2010

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2007 2009 Expected Future Use

2007 - N = 245 2009 - N = 159 Future - N = 157

Usage of Microsoft's Collaboration Platforms

WSS

MOSS

Collaboration

Where are they?


Where are they

going?

Why are they going

there?

Productivity

Where are they?

Are they satisfied?

Where are they

going?

How are they

getting there?

Why are they going there?


Open Text and Drupal users are more likely to recommend their product to a similar organization to themselves.

Collaboration platform loyalty varies greatly.

Note: Some platforms did not have enough responses to accurately evaluate their recommendation likelihood

• IBM Lotus Quickr users were less likely to

recommend their product than Drupal,

Open Text, and MOSS users.


How to read this graph

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Leverage Software

Open Text Jive Software SBS

Drupal Other Microsoft Office

SharePoint Server (MOSS)

Novell Teaming

Microsoft Windows

SharePoint Services (WSS)

Telligent EMC Documentum CenterStage

Not sure IBM Lotus Quickr

N = 118



Collaboration

Where are they?


Where are they

going?

Why are they going

there?

Productivity

Where are they?

Are they satisfied?

Where are they

going?

How are they

getting there?


Industry

1%

2%

8%

9%

11%

14%

15%

20%

20%

0% 5% 10% 15% 20% 25%

Primary Industry

Wholesale/Retail

Transportation/Utilities/ Communications

Education

Financial Services

Government

Healthcare

Business Services

Manufacturing

N = 137

Industry

1%2%

6%9%

10%13%

14%23%

23%

0% 5% 10% 15% 20% 25%

Primary IndustryWholesale/Retail

Transportation/Utilities/ …Financial Services

EducationHealthcare

GovernmentManufacturing

Business Services

N = 111

Industry of Productivity Respondents

1%2%

8%11%

12%14%14%

17%21%

0% 5% 10% 15% 20% 25%

Primary IndustryWholesale/Retail

Transportation/Utilities/ …Education

Financial ServicesHealthcare

GovernmentManufacturing

Business Services

N = 109

Industry of Collaboration Respondents


Business orientation

N = 55

N = 55

N = 73

8%

15%

38%

38%

Business Orientation

Government Non-Profit/Charity Public Private

7%

13%

38%

42%

Business Orientation of Productivity Respondents

Government

Non-Profit/Charity

Public

Private

7%

13%

36%

44%

Business Orientation of Collaboration Respondents

Government

Non-Profit/Charity

Private

Public


Number of employees

2%

6%

10%

18%

16%

20%

12%

15%

0% 5% 10% 15% 20% 25%

1 - 50 Employees

51 - 100 Employees

101 - 250 Employees

251 - 500 Employees

501 - 1000 Employees



5001 + Employees

N = 137

Number of Employees

3%

6%

9%

17%

17%

20%

11%

17%

0% 5% 10% 15% 20% 25%

1 - 50 Employees

51 - 100 Employees

101 - 250 Employees

251 - 500 Employees




5001 + Employees

N = 111

Number of Employees of Productivity Respondents

2%

6%

9%

18%

13%

23%

14%

15%

0% 5% 10% 15% 20% 25%

1 - 50 Employees

51 - 100 Employees

101 - 250 Employees

251 - 500 Employees




5001 + Employees

N = 109

Number of Respondents of Collaboration Respondents


Number of IT employees

17%

18%

17%

21%

11%

8%

4%

1%

1%

2%

1%

0% 5% 10% 15% 20% 25%

1-5 IT Employees

6-10 IT Employees

11-25 IT Employees

26-50 IT Employees

51-100 IT Employees

101-250 IT Employees





5000+ IT Employees

N = 137

Number of IT Employees

17%16%

18%23%

10%6%

4%1%1%

3%2%

0% 5% 10% 15% 20% 25%

1-5 IT Employees

11-25 IT Employees

51-100 IT Employees



5000+ IT Employees

N = 111

Number of IT Employees of Productivity Respondents

16%18%

16%21%

13%9%

3%0%0%

3%2%

0% 5% 10% 15% 20% 25%

1-5 IT Employees

11-25 IT Employees

51-100 IT Employees



5000+ IT Employees

N = 109

Number of IT Employees of Collaboration Respondents


Revenue

2%

4%

7%

8%

12%

19%

23%

9%

15%

0% 5% 10% 15% 20% 25%

$0 - $1M

$1M - $5M

$5M - $10M

$10M - $25M

$25M - $50M

$50M - $100M

$100M - $500M

$500M - $1B

$1B +

N = 137

Revenue

1%3%

7%8%

14%20%

23%9%

14%

0% 5% 10% 15% 20% 25%

$0 - $1M$1M - $5M

$5M - $10M$10M - $25M$25M - $50M

$50M - $100M$100M - $500M

$500M - $1B$1B +

N = 111

Revenue of Productivity Respondents

1%4%

7%7%

13%21%21%

12%14%

0% 5% 10% 15% 20% 25%

$0 - $1M$1M - $5M

$5M - $10M$10M - $25M$25M - $50M

$50M - $100M$100M - $500M

$500M - $1B$1B +

N = 109

Revenue of Collaboration Respondents


Job title

2%

4%

5%

8%

17%

29%

34%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Consultant

Team lead / supervisor

Team member

VP-level

C-Level officer

Manager

Director-level

N = 137

Job Title

1%

4%

4%

7%

14%

23%

28%

0% 5% 10% 15% 20% 25% 30%

Consultant


Team member

VP-level

C-Level officer

Manager

Director-level

N = 111

Job Title of Productivity Respondents

2%

4%

6%

8%

17%

28%

35%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Consultant


Team member

VP-level

C-Level officer

Manager

Director-level

N = 109

Job Title of Collaboration Respondents

How to read a box plot.

The bigger the box, the more variable the responses.

Info-Tech Insight:

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

OpenOffice.org Microsoft Office XP or Earlier



N = 163


The diamonds represent the

average response.

The black horizontal lines

represent the median response.

The bottom of the blue boxes

represent the 25th percentile of the

responses.

The top of the yellow boxes

represent the 75th percentile of the

responses.

The bottom end of the lines represent

the minimum response.

The top end of the lines represent the

maximum response.

Like This? Want More?Watch your inbox.

• Within the coming weeks, Info-Tech will be launching several more short surveys that will offer similar results to these.

• Topics to be covered include:– Business Intelligence– Help Desk– Marketing Automation– Windows 7– And more….

• If you participate, you will receive the results for every project you participated in.

• To ensure you are included or for more information please email Scott Koopman

To learn more or to sign up click HEREInfo-Tech Insight:

mailto:[email protected]

http://www.infotech.com/about/panel

Documents

Practical IT Research that Drives Measurable Results Collaboration and Desktop Productivity Software Survey: Microsoft Dominates both Markets 1Info-Tech