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Chronicles

The story behind the story

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Microsoft Announces New Application and Messaging Migration Tools for Lotus Notes/Domino Customers

Hundreds of new companies worldwide have chosen Microsoft for their collaboration needs.  —  REDMOND, Wash. — Jan. 17, 2006 — As part of its broader strategy to make it easier …

microsoft.com

Context & Ripple Effects

This announcement lands mid-campaign in Microsoft's push against IBM's Lotus franchise: the company is pairing its Exchange/SharePoint collaboration stack with purpose-built tooling that lowers the cost of leaving Notes/Domino behind. The claim that hundreds of companies worldwide have recently chosen Microsoft over Lotus is Microsoft's own framing of that momentum, and CNET's pickup under a 'topple Domino' headline shows the competitive framing travelled.

The migration play also fits the arc of Microsoft's broader collaboration ambitions from late 2005, when ZDNet reported on Microsoft building a fully Web-based Office — evidence the company was repositioning Office and its server products around reach beyond the desktop, with displacement of installed-base rivals as one payoff.

First-order effects

  • Lotus Notes/Domino customers evaluating their platforms now have a vendor-funded exit ramp, with Microsoft absorbing part of the switching cost that previously kept them on Domino.

Second-order effects

  • IBM is forced to defend its Notes/Domino installed base against a rival whose pitch is no longer just product features but cheaper migration arithmetic, putting pressure on Lotus renewal pricing and upgrade paths.

Third-order effects

  • If migration tooling keeps eroding lock-in, enterprise collaboration shifts from an entrenched installed-base market to a contested replacement market, rewarding whichever suite — Exchange/SharePoint or Domino — makes switching cheapest.

The trend: Enterprise collaboration is turning into a switching-cost war, where vendors compete by funding customers' escape from each other's installed bases.