[LMStone]

FWIW we are a taking a "cautious" approach to Microsoft's bid.

We are continuing with our plan to upgrade our Zimbra servers from 32-bit SuSE ES9 running Zimbra 4.5 to 64-bit SuSE ES10 running Zimbra 5.0.2, and have even made some additional hardware investments to ease that transition.

But, since we live and die by our reputation, we fully disclose to prospective Zimbra hosting clients the fact that Microsoft has made this unsolicited bid, and, as a former technology mergers and acquisitions investment banker, how I can't really see Zimbra thriving under Microsoft ownership, given that Zimbra is such a terrific alternative to Exchange.

The net result is that our prospects have delayed making any commitments. None have chosen to upgrade their existing Exchange (or other) infrastructure, and none have signed up yet, either. They are all taking a "wait and see" approach over the next few weeks/months.

To be fair, if I were in their shoes I would be doing the same thing.

Are we a little nervous ourselves? Yes, but just a little. Nonetheless, IMHO even if the deal closed tomorrow and Microsoft announced they were killing Zimbra, we believe our NE license would give us almost a year of continued Zimbra use--long enough to migrate to something else.

Though we are not attorneys, our view is that Microsoft could not unilaterally cancel our NE license (except for breach), without subjecting themselves to a tortious interference claim. And that's good fodder for a class-action suit right there (as well as additional articles by PJ on Groklaw...)

All of this is a long way of saying that we feel we really have no choice but to hang in there and wait to see how this shakes out. Not a great place to be, but it is what it is...

With best regards to all,
Mark