Exchange Server 2003 Ships

Microsoft has launched Exchange Server 2003, officially starting its quest to convert the large number of users still relying on the aging version 5 of the e-mail server software.

The introduction is part of Microsoft's Office System launch on Tuesday.

Pricing for Exchange Server 2003 is unchanged from Exchange 2000 Server. The Standard Edition is priced at $699, and Enterprise Edition at $3999. Client-access licenses cost $67. Volume discounts are available.

Exchange competes with products including Lotus Notes from IBM and the Oracle Collaboration Suite from. Exchange Server 2003 was part of an open beta program, and has been available to volume buyers since August 1.

Easier Upgrade?

About 120 million people worldwide use Exchange for e-mail, according to Microsoft. The vendor estimates that between 40 percent and 50 percent of those users are on Exchange Server 5, which came to market in March 1997. The introduction of Exchange 2000 Server in October 2000 did not move users to upgrade, largely due to the tough upgrade path.

Exchange Server 2003 is different, says Missy Stern, Exchange product manager. "We spent three years listening to customers and developing [migration] tools based on that feedback. We anticipate a rapid take-up of Exchange Server 2003," she says.

Stern would not detail Microsoft's upgrade targets, but more than 200 organizations representing over 330,000 end users have already deployed Exchange Server 2003, according to a Microsoft statement.

Besides a smooth upgrade path, Microsoft promises cost savings and productivity enhancements with Exchange Server 2003. Scalability and remote connectivity have been improved, allowing companies to host more mailboxes on a single server and removing the need to have dedicated servers at remote locations, the vendor says.

User Reconsiders

Pella, a window and door maker in Pella, Iowa, skipped Exchange 2000 but is now upgrading from Exchange 5.5 to Exchange 2003. Improved remote connectivity played a big part in Pella's decision to go with Exchange Server 2003, says Jim Thomas, senior business systems manager at Pella.

"It saves bandwidth cost and it allows me to reduce my remote servers without adding incremental bandwidth to those sites," Thomas says. The company is reducing the number of servers from 16 at 12 locations to 6 at a single location. About 300 of Pella's almost 3000 mailboxes are now on Exchange Server 2003, according to Thomas.

Analysts have said that Exchange 5 is beginning to show its age and that upgrading to Exchange Server 2003 is a "no-brainer."

Exchange Server 2003 uses Microsoft's Active Directory and runs on Windows 2000 Server or Windows Server 2003. Some of the features of Exchange Server 2003, such as eight-node clustering and volume shadow copy services, are not supported when used with Windows 2000. Also, some features, such as caching of the mailbox, require the new Outlook 2003 mail client.

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