Cisco kills off its hosted e-mail product

E-mail has become a commodity, the networking company said

Cisco Systems has decided to kill its cloud-based e-mail service Cisco Mail, only 13 months after it was introduced, the company said in a blog post on Tuesday.

With the growing acceptance of cloud services, Cisco saw a chance to offer e-mail services along with its successful WebEx Conferencing service, which combines desktop sharing through a web browser with phone and video conferencing. But it seems customers weren't as interested in getting e-mail from the networking giant.

Cisco's failure, after investing US$250 million, demonstrates the challenge of penetrating a mature market, and the difficulty in delivering a complex and demanding cloud-based application service, Matthew Cain , vice president and lead e-mail analyst at Gartner, wrote in a research note.

Cisco said it folded the service because customers have come to "view their e-mail as a mature and commoditized tool", which has apparently made the field less interesting for Cisco.

Before committing to any cloud e-mail platform, companies ought to validate its success and momentum, Cain wrote.

Cisco Mail competed with Google Apps, an online package of e-mail, scheduling and productivity applications. The companies are very much polar opposites. While Cisco aims to find new areas where it can charge a premium for its products and services, Google aims to make products and services a commodity, in order to boost advertising sales.

When the search giant launched Google Apps in 2007, it immediately went to an extremely low price, Cain said in an e-mail.

On paper, you can see that Cisco was fighting a losing battle. Google Apps offers a wider set of services with more storage for less money.

Cisco Mail's standard package, which included Outlook integration and 5GB of storage, cost US$ per user per month, while Google Apps for Business offered five times the e-mail storage for $50 per year.

Organizations are increasingly buying suites of collaboration tools, according to Cain.

For companies that want to move their e-mail and more to the web, there are other suites, including Microsoft's own Exchange Online, which offers 25 GB of storage for $5 per user per month. Today, Exchange Online is part of Microsoft's Business Productivity Online Standard Suite, which also includes SharePoint Online, Office Live Meeting and Office Communications Online. It will also be part of Microsoft's Office 365 online productivity package when it launches later year.

Cisco said it will assist existing Cisco Mail customers with their transition to other e-mail alternatives. The company will also offer customers support for the length of their contract, it said.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags internetservicessoftwareapplicationse-mailCisco SystemsInternet-based applications and servicesApplication services

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Brand Post

Bitdefender 2019

Taking cybersecurity to the highest level and order now for a special discount on the world’s most awarded and trusted cybersecurity. Be aware without a care!

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?