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E-mail Usage Continues to Grow At Mind-Boggling Rates; U.S. Users Lead the Way in Account Ownership

Nov. 29, 1999

E-mail is growing in popularity. There are a total of 435 million active electronic mail accounts in the world - enough for every man, woman, and child in the United States, Mexico, and Canada to have their own e-mail address.

Messaging Online, a web portal for the electronic messaging industry, notes in a just-released report that the number of electronic mailboxes in active use around the world grew by 71 percent by the end of September.

E-mail accounts are available in a number of ways: Webmail (mail available via the Internet), Internet Service Providers (ISP) (available as an "add on" service to an ISP subscription), and corporate accounts are the most common. Messaging Online estimates Webmail and ISP e-mail accounts both more than doubled, to 150 million and 100 million, respectively, while the number of corporate electronic mailboxes grew 20 percent to 180 million worldwide. The U.S. and Canada accounted for roughly 5/8ths of the total while Europe, Australia, and Japan accounted for roughly a third of the worldwide installed base.

"Americans are the e-mail junkies," notes Eric Arnum, editor of Messaging Online. Most e-mail users in this country have at least two e-mail addresses, which accounts for the Lion's share of e-mail
residing in the United States.

"There are few places left where you can't receive e-mail," says Arnum, who has tracked the growth of the electronic messaging market for almost 15 years. "Cell phones, video game consoles, even cable TV cable box top units can get an e-mail address. Wireless, fax, and voicemail are converging around the electronic mailbox in the workplace, and everything from MP3 music files to family photos are showing up as email attachments in the home."

Arnum notes that, in the early 1990's, the work/home e-mail split was 80/20. Now, consumers have flocked to Internet services and Webmail, the split has reversed direction to 40/60. Nevertheless, corporate e-mail remains a powerful source of growth for electronic messaging. For that reason, outsourcing companies like United Messaging, Inc. (www.unitedmessaging.com) are in a great competitive position to take advantage of the continuing growth of e-mail.

Messaging platforms - systems that run e-mail - have enjoyed robust growth. "What's surprising is how the Y2K bug is actually accelerating sales for these platforms rather than slowing them," he adds.

Fifteen messaging platforms account for three-quarters of the installed base. However, at least 400 companies count themselves as e-mail system or service operators of some kind, and more appear each day.

While Lotus Notes remains the top corporate messaging platform in terms of installed base, and while the third quarter was its best ever for sales, Microsoft Exchange is actually ahead for the year to
date. Notes grew by 13.3 million seats since the end of 1998, but Microsoft Exchange grew by 14.5 million seats in the same period. "Both these products have been in a tight footrace for at least seven quarters," Arnum says, "and it's still too close to call a winner for the calendar year."

Messaging Online is an advertising-supported information service located at http://www.messagingonline.com on the World Wide Web. Daily newsletters emailed for free to subscribers include Messaging Today and Messaging Headline News. E-mail, Web, online chat, instant messaging, pagers/cell phones, MP3 audio, and MPEG video are among the media used to deliver the latest industry news and research.


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