Microsoft BPOS: When Will Exchange Online 2010 Arrive?
Microsoft shipped Exchange 2010 for on-premises customers in 2009. But if you check Microsoft’s SaaS platform — called Business Productivity Online Suite — you’ll notice that BPOS/Exchange Online still leverages Exchange 2007. The big questions: Why do Microsoft’s SaaS application releases lag their on-premises alternatives? And when can customers and partners expect BPOS/Exchange Online to run Exchange 2010? The VAR Guy found some potential answers. Here they are.
First, a little background: The VAR Guy sent his questions off to a Microsoft spokeswoman last week. The spokeswoman replied with the following thoughts…
The VAR Guy: When will Microsoft shift BPOS Exchange from the 2007 to the 2010 version?
Microsoft’s Reply: Exchange Online is updated quarterly with new features and capabilities. With the launch of Exchange 2010, we will begin the process of updating Exchange Online. We expect those to be available to Microsoft Online Services customers next year, and customers will determine when their users are upgraded to the new capabilities, without the traditional investment of time and energy required for an on-premises upgrade.
The VAR Guy: When will Microsoft introduce SharePoint 2010 in BPOS? Will the introduction lag SharePoint 2010 on-premise’s delivery by a few months?
Microsoft’s Reply: SharePoint Online is updated quarterly with new features and capabilities. With the launch of SharePoint 2010, we will begin the process of updating Exchange Online. We expect those to be available to Microsoft Online Services customers next year, and customers will determine when their users are upgraded to the new capabilities, without the traditional investment of time and energy required for an on-premises upgrade.
The VAR Guy: Does Microsoft foresee a day when new releases (such as a future Exchange release) arrive simultaneously as BPOS and on-premises releases?
Microsoft’s Reply: Yes.
The VAR Guy’s Analysis
Read between the lines and there are a few key takeaways for solutions providers.
Just last week, Microsoft Channel Chief Allison Watson urged solutions providers to start testing BPOS and Windows Azure (the cloud version of Windows). Generally speaking The VAR Guy agrees: Microsoft partners need to get familiar with BPOS and Azure — either to promote the offerings or to find alternatives. Either way, SaaS discussions with end-customers are unavoidable. So get educated.
Now for the tricky part of the discussion. Microsoft says more than 7,000 resellers have signed up to promote BPOS. Sounds impressive. But The VAR Guy is looking to track down wildly successful BPOS partners. Perhaps they’ll show up later this year at the Microsoft Worldwide Partner Conference 2010… The VAR Guy will be hunting for BPOS news at the conference.
In the meantime, some of Microsoft’s hosting partners seem to be beating Microsoft at its own SaaS game. A prime example: Intermedia in late 2009 became the first company to offer hosted Exchange 2010. Now, Intermedia is moving in additional directions, calling on VARs to check out hosted Unified Communications as a way to generate higher margins than traditional hosted email offerings.
Secret SaaS Sauce?
How is Intermedia beating Microsoft out the door with SaaS versions of Microsoft’s own applications? Good question. The VAR Guy doesn’t have an exact answer. But here’s an attempt: Intermedia appears to have written its own SaaS foundation software, which allows the company to more easily move from one Microsoft release to the next (for instance, from Exchange 2009 to Exchange 2010).
Ultimately, Microsoft has made it clear that the company wants to simultaneously release upgrades for its SaaS and on-premises offerings. But is there a time frame for such synchronicity? The VAR Guy isn’t sure… …
Naturally, Microsoft wants to make sure the latest Exchange, SharePoint and Office Communications Server releases are fully baked before offering them as BPOS/SaaS applications. The VAR Guy will be waiting to see when Exchange 2010 and SharePoint 2010 ultimately arrive on the BPOS platform for SaaS customers and partners. In the meantime, hosting partner Intermedia appears to be the only hosted Exchange 2010 game in town.
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Great article – I work closely with the BPOS development team in Redmond and most assuredly Microsoft Exchange Server 2010 will be available – it’s just a matter of time. Keep up the good work!
Harrybbbb
Harry: The VAR Guy has learned to never underestimate Microsoft. And Exchange Online 2010 surely is coming. But Microsoft’s statement makes it sound like a 2011 deliverable…
-TVG
I have noticed that Microsoft sometimes when talking about next year means next fiscal year which is July.
GregB
Greg: You raise a very strong point that The VAR Guy overlooked. You’re right. When discussing years MSFT often refers to its fiscal year.
-TVG
This next version of PBOS including Exchange 2010 and SharePoint 2010 looks promising. Any idea what are the plans for OCS 2010? I believe the gap between OCS 2007 and the BPOS functionality is by far the biggest. E.g. PSTN connectivity using the MS certified partners, multiparty conferencing, smart call routing etc. Any idea on that?
John.
John: The VAR Guy is intrigued by your comment about OCS 2007 vs. BPOS. Our resident blogger will be sure to follow up with Microsoft about that item. Sorry The VAR Guy doesn’t have answers right now, but he’ll go get them for you. Stay tuned.
-TVG
Var Guy,
I asked Microsoft the same question ,why Intermedia was able to release Exchange 2010 sooner than BPOS, the answer which is confirmed through the first TAP call for Hosted Exchange is that Intermedia and others who deploy the current version of Exchange 2010 will not be and are not supported by Microsoft.
This is because Microsoft is working on enabling Hosting as part of the Exchange 2010 and no external solutions are required for Hosters.
I can’t possibly believe that Microsoft can’t release hosted Exchange 2010 faster than Intermedia. The MS rep says next year! As a BPOS user and reseller I don’t see how this makes BPOS 2007 attractive with other 2010 offerings available. MS should really be more on top of this. Kudos to Intermedia for seeing the importance of rolling out new technology. I guess we will all wait for 2010 in 2011 😉
Eric: The Microsoft rep seems to be indicating next “fiscal” year, which starts in July 2010 for Microsoft, The VAR Guy believes. Either way, it is surprising (and impressive…) to see Intermedia beating Microsoft out the door with Microsoft’s own software…
-TVG
I have been looking at BPOS for over a month. The inside scoop from the EMEA side of the pond was hopefully we should see something around September and I am kinda hoping he was talking 2010.
Shameless plug for ThinkGrid. We have all the BPOS services including true VoIP (not OCS) and hosted dekstops. Your customers get a bill from you that they can understand. Also, you can get up to 30% margins. You can even white label the service entirely so we’re invisible.
Sorry for the plug but people should know BPOS isn’t the only game in town.
Gregg: The VAR Guy realizes BPOS isn’t the only game in town. Quick question… Are you a ThinkGrid employee? Partner? Please let The VAR Guy know. And keep him posted on ThinkGrid’s progress.
-TVG
ThinkGrid employee (and evangelist!) I will certainly keep you posted… and maybe advertise properly in the future. 🙂
Well, It is now August 2010. I am running Exchange via BPOS. I still have 2007. Perhaps 2011 will bring the new version. It is strange seeing that one of the benefits of BPOS was to be running the latest version without having to perform all the upgrade work. I guess I will strike that benefit from my slide.
The official MS word is that the -PREVIEW- of wave 14 online will be available before the end of the year. Since the preview won’t be available until October/November (probably) it is safe to conclude that Online Exchange users won’t receive the release until 2Q2011 (calendar, not fiscal) at the very earliest.
My guess is that wave 14 won’t be released until July/August of next year.
Kevin: The VAR Guy thanks you for jump starting this conversation. Our resident blogger will check in with Microsoft for an update on Exchange 2010 on BPOS.
A: The VAR Guy appreciates your estimates as well.
As soon as our resident blogger hears from Microsoft, TheVARguy.com will post an update.
-TVG
The silence from MS is deafening.
At some point google is going to release an application that is to gmail as Outlook is to Exchange and the market share among companies lt; 100 users will vanish overnight. 5 years later MS will acknowledge that it is something they need to look into.
I am much more interested in when SharePoint 2010 will be available in BPOS. I just dont see a lot of killer features in Exchange 2010 for the end user. Or maybe I am missing something.
A@17: The VAR Guy will check in with Microsoft again to see what’s cooking with BPOS Exchange 2010.
Greg@18: The VAR Guy also promises to check on SharePoint 2010 on BPOS as well.
Thanks for sharing your views, and for visiting The VAR Guy.
-TVG
Any news on BPOS 2010?
Nope. Unlikely that we’ll get it this year though. *MAYBE* next year. Maybe.
Nate@19, A@20: The VAR Guy wrote a follow-up report. Sounds like BPOS will run Exchange 2010 and SharePoint 2010 by late 2010. Do you disagree with the report? Oh, and thanks for re-visiting this discussion. The VAR Guy values the interaction with you.
-TVG
It is a question of faith in the company. How many times has MS delayed releases of new or updated software? How many times have they hit the original expected dates? Windows Mobile 7. Visual Studio 2010. Vista. Vista SP1. The list goes on and on and on… when it comes to release goals I have come to expect that nothing that MS is ever credible. Sometimes they give us a pleasant surprise, but I simply refuse to believe that MS is capable of doing this.
It will be released when it gets released. I think we’ll be lucky if we see a preview by December.
Microsoft product delays? Say it ain’t so (again…).
Let’s connect again in December 2010 to see if Microsoft has rolled out Exchange 2010 and SharePoint 2010 to BPOS customers and partners…
-TVG
The following was posted at bpossibility.com
“The rollout is waiting on several factors, one of which is the next version of Office Communication Server (now known as Lync Server 2010 – which will encompass Live Meeting) which is due for RTM in November. Hopefully it won’t be delayed too much after that.”
A: The VAR Guy appreciates your comment but disagrees with that report. Microsoft isn’t delaying Exchange 2010 and SharePoint 2010 for Lync 2010’s arrival. Rather, Microsoft is making sure Exchange 2010 and SharePoint 2010 are truly ready to scale within the BPOS strategy, The VAR Guy believes.
-TVG
I fully agree with the VAR Guy, why Microsoft has not released the update is that she is waiting to make sure that the solution will be scalable to BPOS the recent platform, moreover, we all know what is the fragility of a baby
premature. I prefer to wait for a safe migration and consolidates, for now the solution BPOS 2007 has been attractive and makes me dream about the possibilities this future.
So … here we are in late December and no updates from Microsoft.
Anyone know when we might see BPOS 2010 in production?
And now it is Februari 2011 in Belgium…
Still exchange 2007 on our BPOS.
Meanwille…Office365 seems to be great…
Thomas: Seems like Microsoft’s top priority is Office 365… everything else in Microsoft’s SaaS world seems to be taking a back seat right now. Considering how high the stakes are, it seems like a wise strategy to The VAR Guy.
-TVG
I think we ‘ll move straight from BPOS (and exchange2007) to Office365…
Regards,
Thomas
BPOS is dead long live Office 365!
I am hoping to get some UK pricing for Office 365 tomorrow from Microsoft. I am still expecting the US launch around March for Office 365 not really sure about EMEA but you will only have 12 months to switch to the new platform.