IBM's Lotus division is responding to the challenge posed by Microsoft Exchange. In January 2007, IBM announced a new strategy and new products. The Lotus platform is extending beyond messaging and basic collaboration features and is embracing new social networking technologies and unified communications. These offerings are compelling for most existing Lotus clients, but won't entice the majority of Exchange shops.

IBM Pushes the Lotus Platform

Lotus has felt the pinch of Microsoft Exchange but it still maintains considerable market share. IBM reported a 30% revenue surge for Lotus in Q4 2006. This performance marked nine consecutive quarters of revenue growth. IBM's corporate instant messaging platform, Lotus Sametime, was a major contributor to the performance.

IBM isn't resting on this accomplishment. It is taking the messaging battle to Microsoft and is opening new fronts in the collaboration market. The strategy is to entice third party solution developers by improving...