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AreEffSees
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Junior Boarder
Posts: 7
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Click here to see the profile of this user 		Message Systems going after Strongmail? - 2008/02/20 00:00 Anybody else heard recently that MS has offered to build a custom email marketing application for prospects?

If this is true, it looks like they don't have a problem competing with their esp customers.
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KosherSpam
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Platinum Boarder
Posts: 50
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Click here to see the profile of this user 		Re:Message Systems going after Strongmail? - 2008/02/20 05:56 I haven't heard anything but I wouldn't doubt it! ESPs and installed solution providers are starting to kill each other over the top end of the marketplace. There are a lot more larger companies willing to purchase an installed system than there are ESPs to sell to. The argument to purchase an installed solution is long-term cost, something large companies like to analyze.
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gkraeger
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Fresh Boarder
Posts: 1
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Click here to see the profile of this user 		Re:Message Systems going after Strongmail? - 2008/02/20 14:58 I believe Message System already has a campaign solution. I think KosherSpam post is right on, Message System has to offer this option, or they will struggle to survive, there are just not enough ESP's willing to buy a high end MTA for the price message systems charges. I can't see any vendor able to build a custom email marketing application, it's not a very easy solution to build and building a custom solution for each would not work.

There seems to be only about 4 vendors whom sell the whole package Strongmail, Zrinity, Message Systems(just recently) and Lyris, there are some ESP that sell the campaign management but rely on PowerMta or some other MTA for there solution, sparklist and whatcounts comes to mind.

I don't see it like you do AreEffSees, when you say Message Systems is competing against it's customers. Typically a company is looking for either an in-house solution or ESP. The 4 vendors above do not currently bid on ESP business.
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KosherSpam
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Platinum Boarder
Posts: 50
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Click here to see the profile of this user 		Re:Message Systems going after Strongmail? - 2008/02/28 03:35 gkraeger,

Your analysis is correct but a tad shortsighted. In the top end of the marketplace (companies willing to spend $75K+ for a solution) there is market canabilization between installed providers and very high end ESPs. If you simply look at product cost, an installed based solution is much less expensive compared to an ESP for a company sending huge volume if they amortize the cost over 3 to five years. However, a lot of larger companies forget to include management cost in their analysis (whan happens when the thing breaks? they always do).
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AreEffSees
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Junior Boarder
Posts: 7
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Click here to see the profile of this user 		Re:Message Systems going after Strongmail? - 2008/02/29 19:24 KosherSpam wrote:
gkraeger,

Your analysis is correct but a tad shortsighted. In the top end of the marketplace (companies willing to spend $75K+ for a solution) there is market canabilization between installed providers and very high end ESPs. If you simply look at product cost, an installed based solution is much less expensive compared to an ESP for a company sending huge volume if they amortize the cost over 3 to five years. However, a lot of larger companies forget to include management cost in their analysis (whan happens when the thing breaks? they always do).

Not really sure I understand the cannibalization to which you're referring. I believe that inhouse management and outsourcing are two distinct mindsets. Companies that want control will almost always do things inhouse, while there are plenty of companies out there crazy enough to pay an ESP $100k+ a month for a multi-year contract because they don't want to take on the hassle of managing things themselves.
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