Microsoft dominating as cloud email gains enterprise traction

Microsoft is dominating enterprise cloud email locally, as the cloud email market begins to gain traction.

Gartner says while the cloud email market is still in the early stages of adoption – with just 13% of publicly listed companies globally using either Microsoft or Google cloud email, both companies have 'significant traction' among enterprises of different sizes, industries and geographies.

The study found that 8.5% of public companies in the sample ran cloud email from Microsoft's Office 365 service, while 4.7% used Google Apps for Work.

The reamaining 87% of companies surveyed had on-premises, hybrid, hosted or private cloud email managed by smaller vendors.

Gartner says Microsoft is stronger in all regions, including Australia and New Zealand, and most industry segments, however, Google is mre prevalent in Asia and industry segments where there is more competition and less regulation.

Nikos Drakos, Gartner research vice president, says companies considering cloud email should question assumptions that public cloud email is not appropriate in their region, size or industry.

"Our findings suggest that many varied organisations are already using cloud email, and the number is growing rapidly.

Jeffrey Mann, Gartner research vice president, says among public companies using cloud-based email, Microsoft is more popular with larger organisations, having more than 80% of companies with revenue above $10 billion, who are using cloud mail, as customers.

"Google's popularity is better among smaller companies, approaching a 50% share of companies with revenue less than $50 million.

Gartner says Microsoft is ahead in most industries, particularly those that are regulated, including utilities, energy and aerospace. Google took out segments with more competition and less regulation, such as software publishing, retail, advertising, media, education, consumer products, food and beverage and travel.

The research firm says in industries including travel and hospitality, professional services and consumer products, the highest usage levels for cloud mail were among companies with the biggest revenue, with more than one-third of companies in those industries with revenue above $10 billion, using cloud email from Microsoft or Google.