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This research note is restricted to the personal use of danrob2@washington.edu.

On-Premises Collaboration Suite Options Are

Dwindling

Published: 15 January 2019 ID: G00380021

Analyst(s): Jeffrey Mann

Although most organizations are planning a move to a cloud ofﬁce platform

or have already moved, some want to keep their collaboration and

communications suites on-premises. Application leaders will ﬁnd that such

an approach entails considerable technical and economic concessions.

Key Challenges

■

You can stay with an on-premises collaboration and communications solution if you think you

can live with what you have now for the next 10 years. But for most organizations, this is an

unattractive prospect at a time when technology is developing quickly.

■

Most of the interesting and inuential new collaboration and communications products and

features are available only or primarily from the cloud. Application leaders will continually need

to make the case for how on-premises solutions can solve business needs that cloud solutions

cannot.

■

Application leaders may work in an organization with a de facto on-premises policy for

collaboration and communications facilities that was never fully understood or veried. The

reasons for staying on-premises are not as clear as many believe, and are often based on

invalid assumptions, so application leaders will need to challenge and remove such

assumptions, if they assess that a cloud solution is superior.

Recommendations

Application leaders responsible for digital workplace applications should:

■

Check the validity of reasons for avoiding cloud ofce software and plan accordingly. Their

ndings should include both technical and business outcome assessments.

■

Dene the specic reasons for keeping collaboration and communications software on-

premises and match their deployment model to those reasons. A hybrid or hosted model could

be more appropriate.

This research note is restricted to the personal use of danrob2@washington.edu.

Table of Contents

Strategic Planning Assumption............................................................................................................... 2

Introduction............................................................................................................................................ 2

Analysis..................................................................................................................................................4

Check the Validity of Reasons for Avoiding Cloud Ofﬁce Software and Plan Accordingly...................4

Financial Reasons.......................................................................................................................5

“Legacy” Reasons...................................................................................................................... 6

Speciﬁc Governance Requirements............................................................................................ 6

Data Sovereignty Reasons..........................................................................................................6

Network Access Reasons...........................................................................................................7

Disaster Response Reasons....................................................................................................... 7

Cultural Reasons........................................................................................................................ 7

Security and Privacy Reasons.....................................................................................................7

Upshot — Question All Assumptions.......................................................................................... 8

Match a Deployment Model to the Reasons for Staying On-Premises...............................................8

Everything On-Premises............................................................................................................. 8

Hybrid........................................................................................................................................ 9

Hosted On-Premises................................................................................................................ 10

Gartner Recommended Reading.......................................................................................................... 10

List of Figures

Figure 1. Relative Levels of Functionality in Microsoft’s On-Premises Collaboration Products and Ofﬁce

365........................................................................................................................................................ 4

Strategic Planning Assumption

By 2023, less than 20% of businesses will be substantially provisioned with on-premises

collaboration and communication capabilities.

Introduction

Despite signicant inherent benets and intense vendor pressure to go down the cloud route, cloud

deployment for communication and collaboration products is not universally accepted or even

practicable. Product vendors like Microsoft have been clear that they believe customers should

move to their cloud-based offering — in Microsoft’s case, Ofce 365. Google, the other main cloud

Page 2 of 11

Gartner, Inc. | G00380021

This research note is restricted to the personal use of danrob2@washington.edu.

ofce vendor (with G Suite), has always been a purely cloud-based provider, with no on-premises

option. Beyond cloud ofce suites, most popular collaboration products are cloud-only or strongly

favor cloud deployment (for example, offerings from Box, Quip, Redbooth, Salesforce [Chatter] and

Slack).

However, some organizations persist in planning to keep their email, le sharing, instant messaging,

social and other collaboration technologies on-premises, due to a strong preference, a no-cloud

policy, or (perceived) technical, regulatory or security-related necessity. Given the clear movement

of the overall market toward the cloud, such a policy will involve increasingly stark trade-offs in

terms of cost and capabilities. Although it will be technically possible to keep these deployments

on-premises for at least 10 years, doing so will become increasingly less viable. The number of

innovative or desirable products available without the cloud will dwindle as vendors de-emphasize

or drop their on-premises products and new cloud-only vendors emerge. The fact that Gartner’s

“Cool Vendors in Employee Engagement and Enablement in the Digital Workplace” report contains

only cloud-only vendors underlines this point.

Cloud products show a steady increase in features and capabilities because updates come every

few weeks. On-premises products show less frequent step changes because major releases come

only every few years. Figure 1 illustrates the relative levels of functionality in Microsoft’s on-premises

collaboration products and Ofce 365. The current gap between on-premises and cloud offerings

for Microsoft is not very large at present, but it will grow over time.

For example, features like the Focused Inbox in Microsoft Exchange (see “Survival Guide for

Application Leaders Evaluating and Implementing Microsoft Ofce 365”), Delve and Sway are

available only from the cloud. Cloud-based products will be the best, most innovative and easiest-

to-manage option.

Gartner, Inc. | G00380021 Page 3 of 11

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