Study: E-Mail Providers Missing Out on Mid-Level Market

Share this article:
Hosted e-mail providers are missing out on the medium-sized business market, says a new study released yesterday.


The Radicati Group, Palo Alto, CA, found in its study of hosted business e-mail providers, ISP/Webmail providers and mobile phone e-mail providers, that only 29 percent of hosted business e-mail accounts are medium-sized businesses, organizations with 500 to 5,000 employees.


Seven percent of all accounts are large businesses. Most -- 64 percent -- are small business customers, companies with fewer than 100 employees, leaving a gaping hole in the mid-level market.


The predicted hosted e-mail market growth is another reason to go after the mid-level market. Though there are 856 million hosted e-mail accounts today, Radicati expects that number to jump 69 percent to more than 1 billion by the end of 2009.


"There were a lot of small providers catering to small business, with very basic e-mail services, then there were others catering only to very large businesses. So the mid-range market has been somewhat neglected and has traditionally done their own [e-mail solutions]," said Radicati president/CEO Sara Radicati.


However, now that businesses have more regulatory and security concern, hosted e-mail providers have a much greater opportunity to snare the medium-sized business market, she said.


"As things get more complicated because of security concerns, because of the need to archive, compliance and so on, more of these mid-range customers are beginning to look around for outsourcing solutions," Radicati said. "Providers that offer these bundled, more sophisticated services [security and compliance features] have a very good market opportunity."


Christine Blank covers online marketing and advertising, including e-mail marketing and paid search, for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters


Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Digital Marketing

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

How Amazon Ads Might Change the Game

How Amazon Ads Might Change the Game

Will the Great Recommender introduce "pretargeting" to the menu? Is it destined to become the King of Conversion? Or will its ad business simply settle in between Google's and Facebook's?

Less Than Half of Marketers Say the C-Suite "Gets" Digital

Less Than Half of Marketers Say the C-Suite ...

The long road to digital marketing leadership starts with organizational alignment, a study finds.

Candidates Hook Into Twitter

Candidates Hook Into Twitter

A digital agency for politicians puts the power of presidential electioneering into the hands of Congressional campaigns.

Copyright © 2014 Haymarket Media, Inc. All Rights Reserved
This material may not be published, broadcast, rewritten or redistributed in any form without prior authorization.
Your use of this website constitutes acceptance of Haymarket Media's Privacy Policy and Terms & Conditions.