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1&1 Partners with Open-Xchange, but are They Competing with Microsoft or Google?

Mon, 26 Feb 2007 22:14:00 -0400

BusinessWeek reports that 1&1 will soon start deploying Open-Xchange mailboxes in Germany, followed by rollouts in the US, Britain and France. The article reports that 1&1 manages 5 million email accounts on behalf of 2.7 million web hosting customers. (This is wildly inconsistent with the 6 million hosting customers and 65 million emails accounts in 1&1's Business 2.0 ad. Maybe these figures include users from 1&1 parent company United Internet's Web.de and GMX portals business?)

With Open-Xchange's open source solution, 1&1 will be able to offer Microsoft Exchange-like features for $5 per user per month, versus its $10-$15 $6.99 current price. BusinessWeek says this is "nothing but bad news" for Microsoft, but are Microsoft and Open-Xchange competing with each other? Or should both be worried that end users like Steve Rubel are turning Gmail into their personal nerve centers?

Steve is a senior VP at Edelman PR, an enormous organization that no doubt has an industrial strength email system, but Steve is hooked on Gmail because:

"Everyday I come across something on the web that I want to save for future reference... since I travel a lot, I need to access my bits from a mobile device. The latest version of the Google Toolbar has a send to Gmail function. Select some text or graphics, right click on it and send it to Gmail... Whammo - an instant personal database."

A friend who works at Microsoft says he can use his Windows Mobile phone to search his Exchange archive as well. But 10 GB Gmail accounts are available for $4.17 each per month (mobile client, website builder and web-based word processor and spreadsheet included). That's a 10x larger personal database compared with 1&1's 1GB allocation (Outlook 2003 and free domain name included).

Another important question is, to what extent will 1&1 be able to drive Open-Xchange adoption? Yes, as the world's largest hosting provider, 1&1 can deliver an enormous audience. But seeing is *not* deploying. As a point of reference, when I switched from (POP mail + Outlook + Blackberry) to (Google Apps + Gmail mobile) last week, I realized that despite the conveniently-located Google Start Page icon on my control panel, I still like Netvibes better. But thanks to the Gmail and Google Calendar widgets on Netvibes, I was able to piece together a best of all worlds solution.

If I were 1&1 CEO Andreas Gauger, I would think along the same lines and open up my community and technology platform.
Customer A might prefer Gmail + 1&1's website builder, while Customer B might choose Open-Xchange mail + Google Pages. Why not use widgets, RSS and open APIs to help each user concoct his perfect combination?

In Mike’s first year he turned over more money than the three of us had made in our lifetime. He had so much business, he couldn’t find contractors to fulfill his deals. We stopped laughing and contracted to him. This allowed Mike to focus on selling cheap Web hosting

services. That was his downfall.

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We were hosted on 1and1 for over 2 years. I must say, the first 1.5 year was OK.
No major issue although some downtime from now and then. But the last 6 months
have been a real nightmare. Multiple outages, complete server failures needing
full mailbox restores (4 times), lost e-mails (corrupted new e-mails that could
not be recovered), you name it. We are switching providers ASAP. Two of my users
are currently receiving mail thru a POP server because their Exchange account is
still down (over 2 weeks now). I cannot recommend this hosting provider to
anyone. They have the best rates, but the worst uptime and support so its not
worth it.



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