Original idea by
MK Net.Work
The email compression experts since 1995

Dear Microsoft Executives,

Please find below a suggestion about how to generate from US$958 millions to US$1,224 millions in savings on the costs of operating MSN Hotmail over the next five years.

 

 

Hotmail numbers in short

By offering 250 MB of Hotmail disk space to more or less 220 million users (most common estimate for the number of Hotmail users worldwide found on the web at the time we write this page), you commit to deliver and maintain in time a maximum of 55,000 Terabytes of Hotmail disk space.
Including backup space this commitment is probably closer to 110,000 Terabytes (1 backup copy), 165,000 Terabytes (2 backup copies) or even more Terabytes of disk space to maintain.

Due to the fact that Hotmail users do not use (yet?) 100% of their available Hotmail disk space, the real numbers are certainly less than this.
Let's say that, on average, Hotmail users consume 60% of their available disk space. this makes a still impressive amount of 82,500 Terabytes of disk space full of Hotmail user messages (taking 2 backup copies as a realistic hypothesis).

Of course, a huge amount of network bandwidth is needed to absorb the corresponding Hotmail traffic.

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Nature of the Hotmail traffic

As with any other messaging system, Most of this Hotmail disk space and network bandwidth is consumed by attached files.
Numerous attached files can be compressed into industry standard Zip files with excellent results in terms of compression ratio.

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About us

Our company, MK Net.Work, operates, with ZipMail and other optimization products, on the enterprise email compression market since 1995. We have today several millions of daily users of ZipMail at Lotus Notes and Microsoft Outlook-Exchange using corporations, all around the world.

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About ZipMail for Hotmail

The average impact of ZipMail on our customer corporate email traffic and storage is a 25 to 35 percent volume reduction.

The larger an organization is, the better the return on investment obtained with ZipMail is.

This is the reason why we created this new version of ZipMail for Hotmail. Hotmail, (with Yahoo! Mail and Google Gmail, for which we have also created new versions of ZipMail) is one of the largest email organizations in the world.

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Hotmail numbers more in depth

If we give a look at numbers, for each next million of Hotmail users you will acquire in the future, you will need, at the current level of disk space offered, a maximum of 0.250 terabytes of disk space + 2 backup copies, making a maximum of 0.750 terabytes.
If we imagine that, on average, Hotmail users consume 60% of the offered disk space, you will need 0.450 terabytes per million of Hotmail users.
Of course, you will also need the corresponding network bandwidth to absorb the corresponding Hotmail traffic.

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ZipMail value proposition

This is where ZipMail can help.

Imagine that ZipMail is offered by Microsoft for free to each Hotmail user (and installed automatically at first or next login), most of the attached files sent by the Hotmail users are now compressed into standard industry Zip files (users are free to uncheck the Zip compression option when they attach a file, but next time they attach files, the Zip compression option is checked again by default).

Based on a very conservative 15% reduction of the Hotmail email traffic (ZipMail cannot reduce the size of non-compressible files like JPG, MPG, AVI etc.), ZipMail can save 0.068 Terabytes on the 0.450 Terabytes of disk space needed to operate one million Hotmail users.
The exact same ratio applies to the network bandwidth consumed by Hotmail.

If we consider that the cost of one single GB of Hotmail managed disk space (including the related network bandwidth it has consumed and all related costs like servers, disk arrays, electric power, support, air cooling, fire protection, square meters etc.) is around let’s say an incredibly low price of $10 per year (usual price for 1GB of fully managed disk space per year is generally from several hundreds dollars to over one thousand dollars per year in corporate environment), the yearly savings delivered by ZipMail for each million of new Hotmail users are:
68,000 x $10 = $680,000
Yes, $680,000 saved for each million of Hotmail users per year, or $0.68 per Hotmail user per year.

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Estimates

Let’s do a couple of estimates on 5 years.

Let’s keep the $0.68 savings per user constant on five years. (You will probably offer more disk space per user, and, in time, the existing users may consume far more than the 60% of 250 MB we used in our above estimates, but we can also imagine that the price per managed GB could still decrease).

 

Estimate 1
Number of Hotmail users growth: +10% per year


 

Estimate 2
Number of Hotmail users Growth: +20% per year


 

As you can see, ZipMail can be a real opportunity to reduce the Hotmail operating costs, avoiding from US$958 millions to US$1,224 million spending over the next five years, (and this, based on very conservative hypotheses) or even more if the Hotmail user base grows faster of if the maximum amount of Hotmail storage offered for free increases, for instance from 250 MB to 1GB to comptete with Yahoo! Mail and Google Gmail.

This is a cost reduction plan investors and financial analysts always complaining about cash burn rate will love.

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About our proposal

License or purchase ZipMail for Hotmail at a very small fraction of the expected savings and provide it to the Hotmail users in such a manner that it is automatically installed at first or next user Login.

An additional source of value for ZipMail, an answer to Hotmail privacy concerns:
ZipMail would also help to answer the concerns about Hotmail users privacy since it also offers the optional encryption of the Hotmail attached files.

ZipMail enrich the Hotmail users experience when working with attached files:
Of course, ZipMail for Hotmail includes transparent decompression of Hotmail attached Zip files (as well other features like multi-section of files to attach and persitency of the file selection dialog list-view settings) making the Hotmail user experience far more pleasant when working with attached files.

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Why would you decide to deal with us?

Because:

ZipMail belongs to a mature product line
We work on ZipMail since 1995. The very first version was for Microsoft Mail.
Since then, we have created versions of ZipMail for most of the corporate email platforms like Microsoft Exchange, Outlook and Outlook Web Access, Lotus Notes and Domino Web access, most of the web mails. We also have a version for Microsoft Outlook Express (the only one on the market today). All of the versions of ZipMail are multilingual by construction. Translations are located in the parameter files of the products.
The ZipMail product line is unique on the market as well for the number of email platforms covered as for the number of features, maturity and existing customer base.

We have a significant and fully satisfied international customer base
ZipMail is a bullet-proof product line backed-up by a very solid and loyal international customer base including the biggest corporate email users (some with more than 200,000 users).
We are known to deliver fanatical world-class tech support.

ZipMail for Hotmail is available right now.
ZipMail for Hotmail is derived from our existing products ZipMail for Microsoft Outlook Web Access and ZipMail for inotes/Lotus Domino Web Access. The current version of these products is 9.1.
Although ZipMail for Hotmail is apparently a new product, it is based on a software layer already used at corporate customers for several years.

We can also cover Microsoft Outlook and Outlook Express users.
We also have ZipMail for Microsoft Outlook and Microsoft Outlook Express for the Hotmail users not using the Hotmail Web interface.

You do not need to change anything in the Hotmail infrastructure.
ZipMail is pure client software. There is no software to install on your Hotmail servers.

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Where to go from here?

In case this plan could be of interest for you, simply contact us, we’ll be more than pleased to talk with you about it.

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