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					KENNESAW STATE UNIVERSITY




Microsoft Exchange 2003 in an Accounting Firm




                Prepared for

            Ralph Walker, Ph.D.
         Kennesaw State University
            1000 Chastain Road
         Kennesaw, GA 30144-5591




                 Prepared by

              Chonticia Jackson
                 Kay Park


               April 22, 2005
                                                                                                           2

Letter of Authorization                                                                                    ii

                                                            March 14, 2005

BISM 2100 Students,

The purpose of this assignment is to integrate the material you have learned about Business
Information Systems into a coordinated report and presentation and to allow students to focus on areas
of intended major concentration.

You are being asked to perform a detailed analysis of a Groupware APPLICATION. The formal report
should include information on:
     An Available Groupware Applications (Novell GroupWise, Lotus Notes/Domino, Microsoft
         Exchange)
     Its applicability to one particular field of business (i.e. uses in marketing, accounting, finance etc)
     A complete description of the system, current users (either actual customers or intended business
         size)
     A discussion of the business problems the application is intended to solve
     A Cost/Benefit Analysis of the Available System and its competitors
     A Detailed Demonstration of System Outputs – demos or snapshots with description
     Your Recommendations for Systems Use

The information contained in your presentation will be used for a potential purchase decision by the
university. You will therefore want to present a carefully researched, thoughtfully written, and
comprehensive formal report.

Use a FORMAL REPORT structure for the report. Be creative and complete in your analyses and
presentation. You should gather and include any analyses necessary to appropriately convey an
understanding of the systems use and benefits. Use both commercial and academic resources
(Minimum of 5 each). Where appropriate, you should incorporate charts, graphs, or other visual aids to
illustrate the facts you present both in your report and PowerPoint presentation.

Use an internal attribution style. (APA)

Written Report:
Your managerial report must be submitted through WEBCT. (Each student must submit a copy of his
or her team’s output through WebCT)
Employ the “Seven C’s” of effective business writing and refer back to Chapter Eight - Improving
Business Communication Skills (3rd Edition), Deborah Roebuck, 2001.

Criteria:
A comprehensive formal report employing the 7 C’s of business writing         30 points
Thorough research of sources – academic and commercial                        10 points
Attributions and Citations done properly                                      10 points
Operating Agreement included AFTER the Letter of Transmittal                  10 points
Detailed analysis covering requirements stated above                          30 points
Well developed recommendations                                                10 points

                                                           Sincerely,




                                                           Ralph G. Walker
                                                           Professor, BISM 2100




                          1000 CHASTAIN ROAD • KENNESAW, GEORGIA • 30144
                               PHONE: 770-423-6584 • FAX: 770-423-6601
                                                                                     3


Letter of Transmittal                                                              iii




                                   BB 150, Inc.
                              150150 Plaza Building
                                     Suite 150
                              Atlanta, Georgia 30327




April 22, 2005




Ralph Walker, Ph.D.
Kennesaw State University
1000 Chastain Road
Kennesaw, GA 30144-5591

Dear Dr. Walker:

My team has completed the report you requested. The report researches the
applicability of Microsoft Exchange 2003 in BB 150, Inc.

The report details description of BB 150, Inc., an accounting firm, its customers, the
benefits and drawbacks of application of Microsoft Exchange 2003 in BB150. We
have enjoyed this most interesting project. At your request, we may discuss the report
with you.


Sincerely,


Chonticia Jackson, staff member             Kay Park, staff member
                                                                                         4


                                           iv

                              Operating Agreement

We will achieve team excellence and attain project objectives by adhering to the
following guidelines, which the team has agreed upon:


Accountabilities of Team Associates

      Define accountabilities in terms of associate’s preference, needs, likes,
       abilities, etc., and needs of the group, specifically we will capitalize on the
       strengths and skills of each associate to improve the overall effectiveness of
       the team.
      Honor commitments made to the team and strive to make positive
       contributions to team goals and objectives.
      Responsible for creation of products and accountable to the group a whole.
      Each associate will be committed to the Joint Ventures mission and will
       produce the highest quality work possible.
      Create a relaxed, enjoyable, positive learning community with other
       associates.
      Share the workload equally
      Have fun and celebrate our successes


Team Communications

      Communicate via email at least semi-daily, feedback is expected within 24
       hours by associates.
      Associates are responsible for notifying the team when they will be out of
       reach for any reason, during these periods, absent associates will understand
       that projects and other team work will continue as needed to meet the
       objectives of the team.
      Meet at minimum once a week and additionally as needed.
      Encourage associates by actively seeking feedback and responses. Feedback
       should be direct, constructive, and offered in an honest and tactful manner.
      Associates should respect the opinions and feedback of all team members.


Meeting Management

      A team leader and secretary will be chose for each meeting, in addition these
       roles will be rotated to all each associate to experience different components
       of meeting management and group facilitation.
      The responsibilities of the team leader include: overall leadership for
       meetings, creation and distribution of an agenda at least 24 hours prior to
       meetings to allow for feedback from associates, leadership during a meeting to
       insure all topics have been covered and objectives have been met.
                                                                                          5


      The responsibilities of the secretary will include: compiling and distributing
       meeting notes to associates within 24 hours after the meeting, creating
       comprehensive documentation of project timelines to insure deadlines are met.
      Our team will meet each Monday and Wednesday at 12:30 p.m. at the
       Lifelong Learning Center.
      All associates will be given the opportunity to provide thoughts and ideas
       during meetings or other communications. We will provide listen attentively
       to each team member’s idea and comments, and will provide feedback as
       needed.
      Participate actively in discussions and assignments.
      Discuss previous meeting(s) and next steps for future meeting(s) at each
       meeting


Technical & Interpersonal Strengths and Development Needs

      Associates will provide a self-assessment of personal and professional skills
       and areas for improvement.
      The team will develop a comprehensive assessment of its internal strengths
       and areas for improvement in order to best accomplish the objects of a project
      Associates will develop and enhance skills by partnering with associates in the
       group who possesses strengths in a specific area.
      Each team member will do his/her best to contribute to the development of
       other team associates.


Giving & Receiving Feedback/Conflict Management

      Opinions of group members should be respected.
      The team will celebrate successes and identify learning opportunities.
      Members will demonstrate willingness to make necessary compromises.
      If a reasonable agreement or compromise cannot be made among two or more
       group members, an unbiased third party will be asked to mediate.


Decision Making & Problem Solving

      Decisions will be made by consensus within group.
      The team will consider all ideas from associates important.


Document Development and Production

      A project leader will be chosen for each group assignment. A project leader
       will have overall responsibility for a project and ensure all objectives of that
       project are met. Associates will rotate roles to allow each individual to
       experience leading a project.
      The group will review each product before submission.
      All associates will share development of products.
                                                                                        6


Processes & Quality Standards with Metrics

      Review of each product by an associate other than its creator to insure an
       objective analysis.
      Accompany any product with source documentation and references to verify
       accuracy.
      Check all quantitative data/analysis for accuracy
      Incorporate feedback into products after the peer review process.


Current Effectiveness and Future Planning

      Review materials periodically to determine next steps.
      Evaluate team at each meeting to ensure all associates are clear on objectives
       and assignments.
      The team will review class notes and assignments together to ensure all
       associates have a thorough understand of all material and objectives.


Team Member Signatures


I, the undersigned, do agree to abide by the above mission statement and team
guidelines; I understand that the Team Operating Agreement may be changed at any
time by a consensus of team members and notification of the KSU Teaching Team.




______________________________               ______________________________
Chonticia Jackson                            Kay Park
                                                                                                                              7




                                              TABLE OF CONTENTS




Letter of Authorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             ii
Letter of Transmittal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          iii
Operating Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              iv
List of Illustrations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       v
Abstract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   vi

Background
        Limitation of the report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               10
        A Small Business and an Entrepreneurial Venture. . . . . . . . . . . . . . . . . .                                   10
        Sources and Methods of Data Collection . . . . . . . . . . . . . . . . . . . . . . . . .                             11
        Report Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                11
Intention to solve IT problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 12
Learning Microsoft Exchange 2003
        Benefits of Exchange 2003. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   12
        System Requirements of Exchange 2003. . . . . . . . . . . . . . . . . . . . . . . . . .                              14
        Licenses Requirements of Exchange 2003 . . . . . . . . . . . . . . . . . . . . . . . .                               16
                Exchange 2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  16
                           Standard Edition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  16
                           Enterprise Edition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 16
                Window Server 2003. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                      16
        Exchange Server Client Access License . . . . . . . . . . . . . . . . . . . . . . . . . .                            16
                           Device CAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               16
                           User CAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              16
                External Connector (EC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                      16
        Outlook 2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           17
Price list
        Microsoft Exchange 2003. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   19
        Microsoft Window Server 2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                       19
        Exchange Server Client Access License . . . . . . . . . . . . . . . . . . . . . . . . . . .                          19
                External Connector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .                  19
        Outlook 2003 Features in Exchange 2003 . . . . . . . . . . . . . . . . . . . . . . . . .                             19
Total Exchange 2003 Cost of Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                          20
        Cost Projection of Year 2005. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  20
        Cost Projection of Year 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   21
Drawbacks of Microsoft Products
        Competitors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          22
Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            23
Worksheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     24
Works Cited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      26
                                                                                                   8




                                                  iii



                                  LIST OF ILLUSTRATIONS


Cost projection of year 2008 with Microsoft Price . . . . . . . . . . . . . . . . . . . . .   21

Cost comparison of Microsoft Price and Market Price
with Exchange 2003 Enterprise Ed. and External Connector . . . . . . . . . . . . .            22
                                                                                      9


                                          iv

                                    ABSTRACT




In today’s business world, technology is essential to a small business’ survival. A
business owner must research and decide which computer equipment, software, and
programs best suit the company. In a sea of competitors, Microsoft always seems to
edge out the competition.

The research conducted by BB 150, Inc. has demonstrated Microsoft’s superiority in
the field of technology. The Exchange server provides the most features for the least
amount of money for implementation in small business. This report details BB 150’s
findings.
                                                                                         10


                                    Background

A small business is any company that is independently owned and operated, is small
in size, and does not dominate its markets. According to the U.S. Small Business
Administration, a small business employs fewer than 100 employees. Most small
business owners have limited resources, a lack of capital, and their employees have
several hats to wear. Both of them usually are strapped for time to complete regular
works.

BB 150, Inc. is an accounting firm for small businesses. Other than Accounts
Receivable and Accounts Payable, those start-up companies could easily feel that
accounting is government work and does not generate any income. Furthermore,
small businesses have greater turnovers than big enterprises because of lack of fringe
benefits that they could afford to offer to their employees.

Therefore, choosing a dependable accounting firm could be one of the many decisions
that small business owners must make and it is often one of the most important as a
person chooses a general physician. BB 150, Inc. focuses on accounting services for
the small businesses. Our clients may select their needed services from our list, which
includes Bookkeeping, Payroll Tax and Sales Tax Returns, Financial Statements and
Income Tax Returns. Also, one of our specialties is training our clients’ newly hired
bookkeepers and/or assistant accountants for the specific business tasks.


Limitation of the Report

The researchers discounted a lack of reliable price information of the applicable
products to report. The reason is because they are not working in the retail portion of
the business. Therefore the cost factor cannot be accurate. Nevertheless, the
researchers used the prices retrieved from Microsoft’s price list as well as the dealers’
market price from the Internet. We applied the two different sets of software costs
with both prices, however, we used Microsoft price for Cost Projection of Year 2008.


A Small Business and an Entrepreneurial Venture

Small businesses do not always grow into medium-sized or large businesses. Some
small-business owners prefer to keep their operations modest. On the other hand, one
of the most important goals of an entrepreneur is growth. An entrepreneurial venture
may be small during its early stages, but the goal may be to become a medium-sized
firm of 100 to 499 employees or a large firm with 500 or more employees.

At the start, however, a small business and an entrepreneurial venture may be hard to
tell apart. For a small business owner, stability and profitability are the ideal
situation. For the entrepreneur, growth and a greater presence in the market are
important objectives.
The economies of the United States depend on the creation of new jobs. Between
1994 and 1998, almost 500,000 new firms were formed in the United States, and
                                                                                       11


898,000 new firms were incorporated in 1998. Small businesses accounted for 8.4
million, or 76 percent, of the 11.1 million new jobs created between 1994 and 1998.
Start-up companies less than four years old accounted for 75 percent of the new jobs
in the small business sector. Firms with 5,000 or more employees lost 2.1 million
jobs during this same period. This pattern of job creation suggests that
entrepreneurship accounts for most of the new jobs in the U.S. economy. According
to U.S. government statistics (Small Business Administration, 2002), small
businesses, those with fewer than 500 employees, represent 99 percent of all
employers and provide two-thirds to three-quarters of the net new jobs.
Many of start-up companies, however, can fail if the business idea is poorly
implemented. There are several common reasons for business failure. Among those
reasons, the problems of lack of capital and human resources occurred most often.

In March 2004, co-founders, Chonticia Jackson and Kay Park, launched BB 150 when
it had only twenty accounts and three part-time employees. While BB 150 has been
loyal to its customers’ successes, they have referred BB 150’s outstanding and
distinguishable services to future customers. Consequently, every year, it adds nearly
one hundred fifty accounts and forty accounting professionals.

Today, BB 150 faces joyous growing pains and now is a critical time to adopt an
advanced technology and powerful server in order to provide better communication
and services to our current and future accounts. Therefore, BB 150 researched the
applicability of Microsoft Exchange 2003 because Microsoft is the worldwide leader
in software, services and Internet technologies for personal and business computing.



Sources and Methods of Data Collection

The report used secondary data sources. The majority of data and reference
collections were from Galileo, the U.S. government and commercial web sites.


Report Organization

The report has six major sections: Intention to solve IT problems, Microsoft Exchange
2003, Price list, Total Ownership Cost, Drawbacks of Microsoft 2003, and
Conclusion and Recommendations. The first five sections will state the applicability
of Microsoft Exchange 2003 in BB 150, Inc. In the 6th section, the report states
conclusions and recommendations.
                                                                                         12


                         Intention to solve IT problems

It is common that a small business starts with minimum necessary office equipment
and supplies such as one desk, one computer, and two telephone lines. The first line
is usually for verbal communication, and the second is for facsimile and/or Internet
access. E-mail can be the primary mode of communications for a short message with
attachments. When the message contains more than three pages, facsimile can be the
solution.

As of March, BB 150, Inc. uses an email system hosted by an ISP and communicates
with its customers primarily through e-mail attachments. The attachment can be
appropriate for less than 2 pages. However, it is not unusual that communications
through e-mail cause servers to crash or suddenly stop processing mail. Hence, either
facsimile or the U. S. Postal Service is the solution for three to five pages of
documents.

Earlier, we discussed small businesses and constraints that result in difficulties to stay
in their markets. Among those, the most critical issues could be lack of capital,
human resource problems, and time. In business world, timing is very important for
making decisions. The business owners are very sensitive about today’s and/or this
moment’s information.

In order to make good decisions, they would like to have accessibility to the current
financial status as opposed to the previous month. Therefore, BB 150’s customers
frequently ask us to provide their needed accounting information. This causes BB
150 noticeable expenses of employees’ time to meet customers’ needs besides
accounting.

Therefore, BB 150 intends to minimize employees’ time for the delivery of the
requested information for customers, and External Connection to customers’ accounts
would be great benefit not only to BB 150 but also to its customers. In that way, from
wherever and whenever, a small business owner can review and scan his account from
Payroll to Financial Statements. Also, he can freely download and upload any
document from or to his account.




                      Learning Microsoft Exchange 2003

Benefits of Microsoft Exchange 2003

Exchange Server 2003 comes in two editions: Standard Edition and Enterprise
Edition.

Standard Edition is designed to meet the messaging and collaboration needs for small
and medium corporations, and for specific messaging roles or branch offices.
                                                                                      13


Enterprise Edition, designed for large corporations, enables you to create multiple
storage groups and multiple databases. Exchange Server 2003 Enterprise Edition
provides 8-terabyte-message storage that removes the constraints on the number of
users and amount of data that a single server can manage.

Both editions feature:

   o Network compression: Microsoft Office Outlook 2003 is designed for
     optimum network performance and features attachment and e-mail body
     compression, fewer round trips between server and client, and intelligent
     synchronization.

   o Exchange Server 2003 Management Pack: Helps monitor and proactively
     manage deployments with Microsoft Operations Manager Management Pack.

   o Integrated support for mobile devices: Use the Volume Shadow Copy service
     in Microsoft Window Server 2003 to enable improved backup and restore
     capabilities, thereby reducing the impact to your users and increasing system
     availability.

   o Flexible configuration: Able to configure Exchange Server 2003 as a front-
     end server residing in either the perimeter network (also known as DMZ,
     demilitarized zone, and screened subnet) or behind the firewall to support
     multiple client types such as Outlook 2003 (using remote procedure call
     [RPC] or HTTP), Outlook Web Access, Outlook Mobile Access, Exchange
     Ser ActiveSync, Post Office Protocol 3 (POP3), and Internet Message Access
     Protocol (IMAP).

   o Recovery Storage Group: Recover entire storage groups, databases, or
     individual mailboxes while minimizing impact to your users. This feature has
     the potential to replace the need for separate servers dedicated to recovery
     purposes.


 Feature                       Standard Edition          Enterprise Edition
 Storage groups support        1 storage group           4 storage groups
 Number of databases           1 mailbox store and       5 databases
 Per server                    Folder store
 Total database size           Maximum 16 GB             Maximum 16 Terabytes,
                               Per database              Limited only by hardware
 Exchange Server clustering    Not supported             Supported
 X.400 connector               Not included              Included
                                                                                                       14


System Requirements of Exchange 2003

Exchange Server 2003 comes in two editions: Standard Edition and Enterprise
Edition. Actual requirements can vary based on each system configuration and the
features to choose to install.

Exchange Server 2003 Standard Edition System Requirements


Component          Requirement                                      Recommendation

Processor
Processor         Intel Pentium or compatible 133-MHz or
                  Intel Pentium or compatible 133-megahertz    Intel Pentium or compatible 550-Mhz
                                                                Intel Pentium or compatible 550-MHz
                  (MHz) or higher processor                     processor

Operating         Windows 2000 Ser or Windows 2000              Window Ser 2003
System *          Advanced Ser with SP# or later

                  Windows Server 2003, Standard Edition or
                  Windows Ser 2003, Enterprise Edition

                  Note: Exchange Server 2003 does not run
                  on 64-bit editions of Windows Server
                  2003.

Memory            256 MB of RAM                                 512 MB of RAM or more
Available hard-   You need:                                     You need:
disk space
                  500 MB on the hard disk where you install     500 MB on the hard disk where you
                  Exchange Server 2003                          install Exchange Server 2003

                  200 MB on the system drive                    200 MB on the system drive

Drive             CD drive                                      CD drive
Display           VGA or higher resolution monitor              VGA or higher resolution monitor
Input device      Microsoft Mouse or compatible input           Microsoft Mouse or compatible input
                  device                                        device

File format       Disk partitions must be formatted for the     Disk partitions must be formatted for the
                  NTFS file system, not the FAT file system.    NTFS file system, not the FAT file
                  This requirement applies to:                  system. This requirement applies to:

                  System partition                              System partition

                  Partition storing Exchange Server binaries    Partition storing Exchange Server
                                                                binaries
                  Partitions containing database files
                                                                Partitions containing transaction log files
                  Partitions containing other Exchange Ser
                  files                                         Partitions containing database files

                                                                Partitions containing other Exchange Ser
                                                                files

* Servers running Exchange Server that are using the /3GB feature, which maximizes the performance
of computers with over 1 gigabyte (GB) of physical memory, can operate only on Windows 2000
Advanced Server, Windows 2000 Datacenter Server, or any edition of Windows Server 2003.
                                                                                                      15


Exchange Server 2003 Enterprise Edition System Requirements
 Component             Requirement                                   Recommendation
 Processor             Intel Pentium or compatible 133-              Intel Pentium or compatible 733-
                       megahertx (MHz) or higher processor           MHz processor

 Operating System *    Microsoft Windows 2000 Server,                Windows Server 2003
                       Windows 2000 Advanced Server, or
                       Windows 2000 Datacenter Server with
                       SP3 or later

                       Windows Server 2003, Standard Edition;
                       Window Server 2003, Enterprise
                       Edition; or Windows Server 2003,
                       Datacenter Edition

                       Note: Exchange Server 2003 does not
                       run on 64-bit editions of Windows
                       Server 2003.

 Memory                256 megabytes (MB) of RAM                     512 MB of RAM
 Available hard-disk   You need:                                     You need:
 space
                       500 MB on the hard disk where you             500 MB on the hard disk where
                       install Exchange Server 2003                  you install Exchange Server 2003

                       200 MB on the system drive                    200 MB on the system drive

 Drive                 CD drive                                      CD drive
 Display               VGA or higher resolution monitor              VGA or higher resolution monitor
 Input device          Microsoft Mouse or compatible input           Microsoft Mouse or compatible
                       device                                        input device

 File format           Disk partitions must be formatted for the     Disk partitions must be formatted
                       NTFS file system, not the file allocation     for the NTFS file system, not the
                       table (FAT) file system. This                 FAT file system. This
                       requirement applies to:                       requirement applies to:

                       System partition                              System partition

                       Partition storing Exchange Server             Partition storing Exchange Server
                       binaries                                      binaries

                       Partitions containing transaction log files   Partitions containing transaction
                                                                     log files
                       Partitions containing database files
                                                                     Partitions containing database
                       Partitions containing other Exchange          files
                       Server files
                                                                     Partitions containing other
                                                                     Exchange Server files

* Servers running Exchange Server that are using the /3GB feature, which maximizes the
performance of computers with over 1 gigabyte (GB) of physical memory, can operate only
on Windows 2000 Advanced Server, Windows 2000 Datacenter Server, or any edition of
Windows Server 2003.
                                                                                       16


Licenses Requirements of Exchange 2003

   o Exchange Server license (required) gives the holder the right to install and use
     the server software.

   o Exchange Server 2003 running on Microsoft Window Server 2003 provides
     many new features and enhancements to improve reliability, manageability,
     and security.

   o Exchange Server Client Access License: Device CAL and User CAL
     The Exchange Server CAL, client access license, (required) provides the right
     for a device or user to gain access to the server software. The more devices or
     users gaining access to the server software, the greater the license fees or
     price.

      Device CALs: It can be used in kiosks or shared computer environments
      where multiple employees use the same computer to access their e-mail and
      calendar information. For example, in a manufacturing environment where
      100 factory floor workers each shift can use any of the 10 shared computers on
      the floor, the factory only needs to purchase 10 Device CALs.

      User CALs: It can allow access to the server running Exchange from multiple
      devices, including computers, laptops, and mobile devices.

   o The External Connector (EC) is an optional additional server license for
     external users that enables access to your servers running Exchange server
     2003. With this license, you do not need to buy individual Exchange Server
     CALs and the EC are licensed per server. When you need to allow external
     users such as business partners, customers, or retirees (those who are not
     employees or similar personnel of the company or its affiliates) to gain access
     to your corporate network, you have two choices:

      1.      Purchase Exchange Server CALs for each one of their external users.
      2.      Purchase External Connector licenses for each copy of the Exchange
              Server 2003 software that those external users access.

      The majority of customers for this license are likely to enterprise with
      initiatives to deeply integrate customers and partners into their
      communications and collaboration infrastructure by using enhanced security.
      Some scenarios might include:
      a. A financial services company with over 100,000 customers could deploy
           the External Connector license to improve communications and reduce
           costs by sending their customers monthly statements by e-mail or by
           providing secure access to customer service.
      b. A European power company with over 1,000,000 customers could send
           monthly bills through e-mail at a significant savings in traditional postage.

      A university could use the External Connector license to maintain close ties to
      its alumni community.
                                                                                        17



Outlook 2003 Features in Exchange Server 2003

Microsoft Outlook provides basic contact management capabilities in its address
book, and you can share a centralized contact list if you’re running Microsoft
Exchange server or its equivalent. However, most businesses are likely to want
something more sophisticated and the option to consider is Microsoft Outlook 2003.
It lets you track contacts and accounts, long phone calls and other interactions,
manage opportunities in your sales pipeline, and run a variety of reports.

Microsoft Office Outlook 2003 gives you an integrated solution for managing e-mail,
schedules, tasks, notes, and more. Key enhancements include the new-cached mode,
automatic grouping of messages, junk e-mail handling, and improved reading views.

Cached Exchange Mode: Outlook 2003 clients using Cached Exchange Mode perform
most e-mail-related tasks from the local client, reducing the number of requests to the
server for data and improving performance for items stored in the local copy of the
mailbox.

MAPI compression: When using Outlook 2003 and Exchange Server 2003, all
mailbox content is compressed on the server running Exchange Server before sending
information to Outlook 2003 clients.

HTTP access from Outlook: When used with the Microsoft Windows Server 2003
RPC Proxy Service and Exchange Server 2003, Outlook 2003 clients can connect
simply using HTTP or HTTPS, thereby reducing the need for virtual private networks
(VPNs) or dial-up remote access.

Buffer packing: After information is compressed, all information sent from servers
running Exchange Server 2003 to Outlook 2003 clients is packaged in larger and
more optimized buffer packets, thereby reducing the number of requests to and from
the servers running Exchange Server.

Outlook performance monitoring: Outlook collects latency and error information
from Outlook clients and sends it to Exchange Server 2003. This data is held in the
Exchange Server store as well as reported in the event log and performance counters
for Microsoft Operations manager access.

Advanced antispam filters: This feature uses keywords and patterns automatically
derived from examples of spam and normal mail to produce a score.

Safe and Block lists: Get additional spam control by choosing to only receive e-mail
from individuals already set up in your address book, from specific e-mail addresses,
or from designated domains.

External HTML blocking: By blocking external HTML by default in Outlook 2003,
you can stop spammers from using Web links to sneakily verify recipients’ e-mail
addresses as active.
                                                                                     18


Outlook Kerberos Version authentication protocol: Outlook now includes support for
the Kerberos protocol to authenticate against servers running Exchange.

Incremental change synchronization: In earlier versions when interruptions occurred
during the offline synchronization process, the entire process had to start over from
the beginning. Incremental change synchronization in Outlook 2003 and Exchange
Server 2003 enables the synchronization process to resume where the outage occurred
instead of starting the entire synchronization process over.

Smart change synchronization: In earlier versions of Outlook, the entire message and
body was sent back to the server. In Outlook 2003, when items are marked read,
unread, flagged or slightly modified in other ways, only the header that lists the
change is sent back to the server.

Skip bad items: During synchronization, items marked as bad or conflicting are now
moved to the Sync Items folder, enabling the synchronization to continue.

Presynchronization reporting: the synchronization progress meter shows detailed
synchronization information such as new e-mail headers and total size whether to
synchronize, and whether the folder is up to date.




        Outlook 2003(MAPI)                             POP3 or IMAP Clients




   Outlook Web                                                  Outlook Web
   Access (Browser                    Exchange                  Access Web Parts
   Based Clients)                     Server                    (Embedded into a
                                       2003                     Web Portal)




        Pocket Outlook                               Outlook Mobile
        Exchange Server                              Access Mobile
        Active Sync                                  Browsers
                                                                                         19




                                         Price list

Price research was the most serious limitation we had for this project. Microsoft’s
product price and the market dealers’ price are significantly different. This is because
Microsoft publishes only Open License prices. Since we are not a dealer or retailer,
we are not able to find the most reasonable prices of the Selected License or the
Enterprise Agreement or Volume Price, and etc.

Nevertheless, the researchers used the prices retrieved from Microsoft products price
list as well as the dealers’ market price through the Internet. Therefore, we list the
two different sets of Total Cost of Ownership with both prices for the products.

Microsoft Exchange 2003:

        Standard Edition: MS price $699 vs. Hewlett Packard price $631
        Enterprise Edition: MS price $3,999 vs. Direct Deals $2,800

Microsoft Window Server 2003

        MS Price $1,099 vs. Tech USA price $299

Exchange Server Client Access License

        MS price $67 vs. Direct Deals Price $60

External Connector

        Direct Deals price; $17,130

Outlook 2003 ($109 per user)

        MS price $109 vs. Science International price $30


Calibex Compare and Save
http://www.calibex.com/serv/calibesx1/buyer/OutPDir.jsp?search=window+server+2003

Direct Deals
http://www.directdeals.com

Hewlett Packard
http://h30094.www3.hp.com/product

Sales international
http://www.salesintl.com/product

Tech USA
http://shopping.netsuite.com/s.nl/c.308087/sc.2/category.10/it.A/id.95/.f
                                                                                       20


                  Total Exchange 2003 Cost of Ownership

In BB 150, Inc’s. case, the acquisition cost of ownership study shows that Microsoft
Exchange 2003 Executive Edition offers a significant total cost of ownership
advantage over Standard Edition with in three years of the business.

Exchange 2003 Enterprise Server is designed for larger organizations. Moreover, as
of April 2005, Exchange 2003 Standard Edition could be suitable for BB 150, Inc.
because it has only 40 employees and 150 accounts. However, the unique feature of
BB 150, Inc. will allow its customers to have accessibility to their accounts, and
therefore the 150 accounts will have either External Connector Licenses or additional
Client Access Licenses.

The cost study of application of Exchange 2003 is as follows:

General Assumptions as of April 2005:

      Average net income per account per year after tax as of April 2005 is $3,000.
      40 accountants and bookkeepers (20 accountants and 20 bookkeepers).

      150 accounts.

General Assumptions of year 2008:
    Average net income per account per year after tax is $3,000 (No change).
    100 accountants and bookkeepers (50 accountants and 50 bookkeepers).
    Average wage is $16.87 based on 4% raise per year.
    400 accounts.

Cost Projection of Year 2005
 Standard Edition with additional CAL     Enterprise Edition with additional CAL for
 for each account                         each account

 Total Cost (MS price)   $18,318          Total Cost (MS price)   $23,413
 Cost per Employee          458           Cost per Employee          585
 Cost per Account           122           Cost per Account           156


Cost Projection of Year 2008

 Standard Edition with additional CAL     Enterprise Edition with External Connector
 for each account                         License for all unlimited accounts

 Total Cost (MS price)   $50,723          Total Cost (MS price)   $41,053
 Cost per Employee           507          Cost per Employee           411
 Cost per Account            127          Cost per Account            103
                                                                                      21



Cost Projection of Year 2008
 Enterprise Edition with External            Enterprise Edition with External Connector
 Connector License with MS price             License with market prices

  Total Cost (MS price) $41,053        Total Cost (MS price)        $28,219
  Cost per Employee         411        Cost per Employee                282
Income and Cost of Exchange 2003 of Year 2008 Account
  Cost per Account          103        Cost per                          71



Cost Projection of Year 2008 with Microsoft price

 Costs of Exchange 2003 Enterprise           Net Income          $1,200,000
 Edition with Additional CAL for each        Increased Income      750,000
 account                                     Cost                    50,723

 Costs of Exchange 2003 Enterprise           Net Income          $1,200,000
 Edition with External Connector License     Increased Income      750,000
                                             Cost                    41,053




           $600


           $500


           $400                                             Standard Ed. With
                                                            additional CAL
           $300
                                                            Enterprise Ed. With
                                                            External Connector
           $200
                                                            License

           $100


             $-
                  Cost per Employee Cost per Account



               Cost projection of year 2008 with Microsoft Price
                                                                                        22




            $700

            $600

            $500
                                                               Market Price
            $400
                                                               Microsoft Price
            $300

            $200

            $100

               $-
          Cost per employee              Cost per Account



            Cost comparison of Microsoft Price and Market Price
          with Exchange 2003 Enterprise Ed. and External Connector.




                        Drawbacks of Microsoft Products

In any industry, competitors help consumers in many ways. The most noticeable
consumer benefit could be price and better technology. GroupWise 6.5 of Novell and
Lotus Notes/Domino of IBM could be comparable groupware applications to
Microsoft Exchange 2003. During the research, from the two competitors, we
collected two identical problems of Microsoft and its products including Exchange
2003.

      High cost upgrade to Exchange 2003
       Microsoft has increased the cost of operating Exchange significantly.

      High risk of susceptibility to virus attacks
       Over the last three years, bugs targeting Microsoft products and have cost the
       industry an estimated $40 billion


The competitors claim that a consumer pays higher price for taking computer virus.
                                                                                     23


                               Recommendations

Today, BB 150 faces joyous growing pains and it is a critical moment to adopt an
advanced technology and powerful server in order to provide better communication
and services to our accounts. The company is ready to improve feature from currently
using ISP based e-mail system to in the area of manageable, performable, capable,
and collaborative.

Therefore, BB 150 researches the applicability of Microsoft Exchange 2003 because
Microsoft is the worldwide leader in software, services and Internet technologies for
personal and business computing. Our researchers found that Exchange 2003 delivers
a reliable scalable, and manageable infrastructure and collaboration. The major
supportive features of Microsoft Exchange 2003 for BB 150, Inc. are as follows:

      Exchange Server 2003 has powerful collaboration features that all work
       groups to increase productivity by sharing calendaring, address books,
       messages and files.

      Exchange Server 2003 support powerful management and tracking tools so the
       e-mail system is operating efficiently

      Security enhancements offered by Exchange Server 2003 include Internet
       Protocol security (IPSec) support for front-end and back-end clusters, signed
       Lightweight Directory Access Protocol (LDAP) requests to Active Directory,
       front-end and back-end Kerberos authentication, Internet Information Services
       (IIS) 6.0 security and dedicated application mode, restriction of distribution
       lists to authenticated users, real-time Safe and Block lists, inbound recipient
       filtering, attachment blocking in Microsoft Office Outlook Web Access,
       public folders permissions improvements for unknown users, and restricted
       submissions improvements. Therefore, Microsoft Exchange 2003 is protected
       from e-mail virus attacks.

      For BB 150, Inc. the External Connector License is cost effective than CAL


Finally, it is our strong recommendation that the leading product, Microsoft Exchange
2003, will give BB 150, Inc. the best of best in communication and collaboration
capabilities while managing and maintaining a high-performance system, and also
increasing net income significantly.
                                                                                        24


                  Assumption




Average Annual Net Income per Account (after Tax)              $3,000
Number of BB 150 employees, April 2005               40
Number of BB 150 accounts, April 2005               150
Number of BB 150 employees, April 2008              100
Number of BB 150 accounts, April 2008               400
Net Income Year 2005 before Exchange 2003                 $ 450,000
Net Income Year 2008 before Exchange 2003                 $ 1,200,000




Acquisition Costs of Exchange Server 2003
                                                                                   Market
                                                Quantity MS Price/ea      TCO      Price

Window Server 2003 Standard Ed. with 10 CALs          1   $    1,199               $ 299      tu
Window Server 2003 Enterprize Ed. w/ 25 CALs          1   $    3,999               $ 789      tu
Exchange 2003 Standard Edition                        1   $      699               $ 631      hp
Exchange 2003 Enterprise Edition                      1   $    3,999               $ 2,800    dd
Client Access License                                 1   $       67               $    60    dd
Number of External Connector                          1                            $ 17,130   dd
Outlook 2003                                          1   $     109                $    30    si




Standard Edition
Exchange 2003 Standard Edition                        1   $      699    $   699
Window Server 2003 Standard Ed. with 10 CALs          1   $    1,199    $ 1,199
Additional CALs for Employees                        30   $       67    $ 2,010
Additional CALs for Customers/ without EC           150   $       67    $ 10,050
Outlook 2003                                         40   $      109    $ 4,360
Total Cost                                                              $ 18,318
Average Cost per Employee                                               $   458
Average Cost per Account                                                $   122


Enterprise Edition
Exchange 2003 Enterprise Edition                      1   $    3,999    $ 3,999
Window Server 2003 Enterprise Ed. w/ 25 CALs          1   $    3,999    $ 3,999
Additional CALS for Employees                        15   $       67    $ 1,005
Additional CALS for Customers/ without EC           150   $       67    $ 10,050
Outlook 2003                                         40   $      109    $ 4,360
Total Cost                                                              $ 23,413
Average Cost per Employee                                               $   585
Average Cost per Account                                                $   156
                                                                                        25


3 years Projection with Enterprise Edition

Exchange 2003 Enterprise Edition                           1   $    3,999    $ 3,999
Window Server 2003 Enterprise Ed. w/ 25 CALs               1   $    3,999    $ 3,999
Additional CALs for Employees                             75   $       67    $ 5,025
Additional CALs for Customers/ without EC                400   $       67    $ 26,800
Outlook 2003                                             100   $      109    $ 10,900
Total Cost                                                                   $ 50,723
Average Cost per Employee                                                    $   507
Average Cost per Account                                                     $   127


Exchange 2003 Enterprise Edition                           1   $    3,999    $ 3,999
Window Server 2003 Enterprise Ed. w/ 25 CALs               1   $    3,999    $ 3,999
Additional CALS for Employees                             75   $       67    $ 5,025
External Connector License                                 1   $   17,130    $ 17,130
Outlook 2003                                             100   $      109    $ 10,900
Total                                                                        $ 41,053
Average Cost per Employee                                                    $   411
Average Cost per Account                                                     $   103




3 years Projection with Enterprise Edition
                                                               Mkt Price
Exchange 2003 Enterprise Edition                           1   $     2,800   $ 2,800
Window Server 2003 Enterprise Ed. w/ 25 CALs               1   $       789   $   789
Additional CALS for Employees                             75   $        60   $ 4,500
External Connector License                                 1   $ 17,130      $ 17,130
Outlook 2003                                             100   $        30   $ 3,000
Total                                                                        $ 28,219
Average Cost per Employee                                                    $   282
Average Cost per Account                                                     $    71




Hewlett Packard
http://h30094.www.3.hp.com/product

Calibex Compare and Save
http://www.calibex.com/All--zzcalibex1zB1z5---html

Direct Deals
http://www.directdeals.com/category_exchange_enterprise_2003_.aspx?WT.mc_id=datafeed_nextag

Sales International
http://www.salesintl.com/product.asp?0=218&1=231&3=98

Tech USA
http://shopping.netsuite.com/s.nl/c.308087/sc.2/category.10/it.A/id.93/.f
                                                                            26


                           Works Cited

         Mohamed A., Exchange Server 2003 is stable, says Forrester. ,
 Retrieved March 8, 2005 from Computer Weekly.
http://search.epnet.com/login.aspx?direct=true&db=cph&an=16486649

        Balkin, C. and Gomez-Mejia. (2002) A Distinction Between an
Entrepreneurial Venture and a Small Business Management, McGraw
Hill/Irwin, 2nd edition, pp328.

        Calibex Compare and Save. Retrieved March 2005.
http://www.calibex.com/serv/calibesx1/buyer/OutPDir.jsp?search=window+se
rver+2003

         Clyman, McLaughlin, Steinhart, and Gambhir. (2004). Manage Your
Customers & Contacts. PC Magazine. Vol. 23 issue 21, p146, 1p, 3c.
http://search.epnet.com/login.aspx?direct=true&db=cph&an=15094945


         Chouinard, D. (2005, January). Protecting Microsoft Exchange Server
in SBMs, Computer Technology Review, Vol. 25 Issue 1, p22, 2p.
http://search.epnet.com/login.aspx?direct=true&db=cph&an=1622901

        Finders University. Retrieved March 2005.
http://fmp5b.cc.flinders.edu.au/vendors/selectprices/server2003family.pdf

         Breslford, H. (2005, April). How to …Do More With Microsoft Small
Business Server, Certification Magazine, Vol. 7 Issue 4, p26, 2p, 3c.
http://search.epnet.com/login.aspx?direct=true&db=cph&an=16388624

         “In Brief”, Computer Weekly, 8/31/2004, p4, 2p.
http://search.epnet.com/login.asxp?direct=true&db=cph&an=146775290

         Schwartz, J. (2004, November 8). HP Targets ISVs To Grow SMB,
VARBusiness: Vol. 20 Issue 23, P18, 4/5p, 1c.
http://search.epnet.com/login.aspx?direct=true&db=cph&an=14909313

        Microsoft Exchange Server 2003, visited 3/29/2005.
http://www.microsoft/exchange/evaluation/editions.mspx

        Price List and External Connector License. Retrieved March 2005.
http://fmp5b.cc.flinders.edu.au/vendors/selectprices/select.html

       The Radicati Group, Inc. (2004). Microsoft Exchange 2003 Total
Cost of Ownership. A White Paper.
www.radicati.com

       U.S. Small Business Administration, 2000 (www.sba.com).

				
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