Email Hosting Discussions

In 2006, Google became the first of the big 3 search engines/mail providers to offer free email hosting. Some analysts saw this entrance as the first nail in the coffin for email hosting providers that had built businesses around paid email services.

On the contrary, free email hosting actually helped strengthen the email hosting sector. As a result of Microsoft, Google and Yahoo entering the playing field, the established players moved swiftly to expand their offerings, align with strategic partners and ultimately strengthen their existing client relationships.

What was once a predominantly Linux based email service has evolved to include support for additional platforms. Some providers are now bundling Exchange and Zimbra with their basic email hosting services. Even basic webmail applications have benefited from innovative solutions to synchronize with client applications like Outlook and wireless devices.

These developments have been mutually advantageous to both customers and providers. Bundling means one stop shopping for customers who now have the ability to mix and match solutions. For providers, new and expanded services have helped build brand recognition, improve customer loyalty and retain clients for the long term.

Just how free is free email hosting? There are two financial motivations behind free email hosting. The first is advertising. The more subscribers a provider has, the more ads it can serve in webmail applications. The second driver is SAAS or software as a service. As Google and Microsoft roll up their sleeves to win over desktop users and push out their web based office applications, email is an obvious and direct path to end users.

Most businesses looking at free email hosting quickly learn about these tradeoffs. For some, webmail with advertising is simply not acceptable. For others, the SAAS upsell highlights the fact that these companies are not specialists in business email hosting. In sum, the so-called free email hosting has brought renewed value to the level of customer service and expertise offered by the paid service providers.

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