Microsoft and BT collaborate on hosted Exchange service

BT became the latest Tier 1 provider to add hosted Microsoft Exchange service to its portfolio this week through a $7 million contract for a hosted framework that can extend to other services and advance Microsoft’s vision of delivering software as a service.

BT has tested the Microsoft .NET-based hosted product in both its Technology Centre in Reading, England, and the Microsoft Partner Solutions Center in Redmond, Wash., and will begin deployment in February for an anticipated service launch next summer.

BT will initially offer an enhanced Exchange service to small and medium-sized businesses, which includes shared calendar and contacts.

Belgacom, Bell Canada and Telecom Italia have also contracted with Microsoft to offer hosted Exchange services. Microsoft also delivers hosted applications for service providers through hosting partners such as Apptix.

"This is a good example of what we expect to see over the next couple of years, said Michael O’Hara, Microsoft’s general manager of service providers. "Bundled services [delivered] through service providers are definitely taking off."

Microsoft will be delivering a framework for future applications, which could include SharePoint services, Windows Messenger, IP TV and other applications. BT has not specified which service it might implement next.
Acknowledging the less than expected performance of earlier application service provider models, O’Hara said the difference now is that the market and the technology are ready. "We’ve been through the whole ASP thing. But now, broadband adoption is in place, the technology is ready and running this type of solution over IP connectivity is something people are more willing to do," he said.

The solution comprises a suite of Microsoft .NET-based software and service packages that are designed to provide enhanced connectivity and streamline operational and billing processes. Microsoft’s BizTalk Server 2004 provides BT with a unified view of its customer data and service information for provisioning and billing purposes.

Microsoft Hosted Exchange is a tested, pre-engineered solution based on Microsoft server products and can accommodate several million e-mail accounts. "We are comfortable with scaling to millions of mailboxes in a carrier-grade fashion. No concerns there," O’Hara said.

The project is being coordinated by Microsoft Consulting Services in conjunction with Tata Consultancy Services for implementation and integrated solutions. HP also will provide services. TCS has been operating in the UK and Ireland since 1975 and is listed on the National Stock Exchange and Bombay Stock Exchange in India.