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Really, What Does E-mail Cost?

by Bill Pray  |  July 15, 2010  |  3 Comments

Okay, so I said in the previous post that “It depends.” But that doesn’t really help you much. However, it does set the stage for the caveat that “your mileage may vary.”

When determining e-mail costs, it is important to look beyond the licensing costs and to also use, at the least, a three year average to get the best grasp on what it really costs.

Costs should include not only the e-mail licensing, but add-ons, mobile, perimeter services, archiving, and migration costs if you are considering a new e-mail solution.

So, here are two examples of large enterprise’s and their costs – remember your mileage may vary:

A large financial institution with 35,000 plus mailboxes on 60 plus servers (also significant regulatory and compliance requirements) –

  • Mailbox costs = $116 per user per year
  • Archiving costs = $46 per user per year
  • Perimeter services costs = $31 per user per year
  • Total costs = $192 per user per year

A large energy enterprise with 36,000 plus mailboxes, using an older e-mail solution and infrastructure (that is under review for replacement), with some of the servers being hosted by third parties –

  • Mailbox costs = 73,5 € per user per year
  • Perimeter services costs = 3,5 € per user per year
  • Total costs =  77 € per user per year

Category: applications  

Tags: bill-pray  burton-group  costs  e-mail  

Bill Pray
Research Director
2 years at Gartner
16 years IT industry

Bill Pray is an analyst in the Collaboration and Content Strategies ITP team. He covers communications and collaboration solutions — e-mail, calendars, instant messaging, and web conferencing…Read Full Bio

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  3. marc dencker says:

    costs that need to be included are also operational costs, hardware depreciation

    you also need to compare on items such as mailbox size, SLA etc

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