The ASP model let customers use Exchange through a provider instead of installing and operating it themselves. In 2000, an application service provider (ASP) combined Microsoft software, data-center capacity, provisioning tools, support and commercial licensing, then delivered messaging and collaboration as a service over the Internet. Exchange 2000 was generally available on October 10, 2000, but hosted Exchange services already existed on Exchange Server 5.5.
What was the ASP model?
An ASP hosted business applications in its own or a partner’s infrastructure and gave customers network access to them. The customer bought an operating service rather than a server deployment project.
Microsoft’s July 2000 ASP initiative described a multi-party ecosystem, not one universal supplier. Different partners could provide hosting capacity and operational infrastructure, develop hosted solutions, customize the software, sell services or deliver professional services. Microsoft also announced technical-readiness materials and a certification program intended to help partners deliver these services.
“Enabling application service providers to offer Microsoft Exchange 2000- and Windows 2000-based services requires unique skills gained only from experience.”
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Jeff Lynn, vice president and general manager, Compaq Professional Services, in Microsoft’s July 2000 ASP announcement
How did Exchange 2000 hosting work?
A hosted Exchange customer connected to a provider-operated messaging environment. The provider supplied the servers, storage, network connectivity, Exchange administration and customer support. It created accounts, assigned resources and applied security policies across a shared service while keeping each customer’s data and administration boundaries separate.
That arrangement shifted responsibility in several practical areas:
| Operating dimension | Hosted Exchange ASP | On-premises Exchange deployment |
|---|---|---|
| Infrastructure | Provider owned or operated the hosting capacity and data-center environment. | Customer purchased, housed and maintained the servers, storage and network. |
| Software operation | Provider installed, patched, monitored and administered Exchange as a service. | Customer’s IT staff performed those tasks. |
| Account provisioning | Provider tools and staff created users, mailboxes and service options. | Customer administrators created and managed them directly. |
| Isolation and security | Provider enforced security and allocated resources across a shared service. | Customer controlled the deployment boundary and internal policies. |
| Support | Support came from the service provider under its service arrangement. | Support was handled by the customer, a consultant or a separate support contract. |
| Billing | Usage or subscribed services could be measured and billed by the provider. | Costs were mainly hardware, licenses, staff and support purchased by the customer. |
The contemporary announcements describe these responsibilities and business mechanics, but they do not establish common prices, service-level guarantees or independently measured customer savings.
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Which companies hosted Exchange?
Microsoft’s January 2000 announcement said providers were already offering services based on Exchange Server 5.5 and that many planned Exchange 2000 offerings. It quoted USinternetworking’s Enterprise Messaging and Collaboration business unit:
“Today, our customers are accessing the full-featured messaging and collaboration functionality offered by Exchange 5.5 through the Internet,”
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Nick Magliato, president and general manager of USinternetworking’s Enterprise Messaging and Collaboration Business Unit, in Microsoft’s January 2000 announcement
Microsoft’s October 2000 announcement said more than 40 ASPs were delivering hosted services on the Exchange platform. That is Microsoft’s reported count at launch, not an independent industry census. The October consumer-services program targeted carriers, Internet service providers and portals, which could offer email and additions such as calendaring and instant messaging. The announcement does not prove that every planned provider or feature launched on schedule.
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What did the Exchange 2000 Hosting Pack do?
Microsoft described the Hosting Pack as an extension for selected ASPs that added service-provisioning capabilities around Exchange 2000. Its functions connected technical administration with the provider’s commercial workflow:
- Web self-service: customers could use browser-based controls instead of submitting every request to an operator.
- User registration: the service could register users and create the identities needed for hosted accounts.
- Resource allocation: providers could assign mailbox and related service resources within the shared environment.
- Security enforcement: provider policies could be applied consistently across hosted customers.
- Provisioning logs: records of service changes could support billing and operational auditing.
Microsoft said providers could customize and extend the package. It had issued the Hosting Pack to selected ASPs with Exchange 2000’s October 10 general-availability announcement, while general availability for the pack itself was targeted for the first half of 2001. Those dates distinguish limited issuance from the later planned release.
How was hosted Exchange licensed in 2000?
In July 2000, Microsoft announced subscription licensing for Windows 2000, SQL Server 2000, Exchange 2000 Server and Office 2000 when those products were delivered as hosted services. The announcement presented licensing as part of the ASP business model: the provider could assemble Microsoft software into a recurring service instead of requiring every customer to run a conventional, self-managed installation.
The announcement does not provide enough detail to reconstruct every provider agreement, price, reporting rule or eligibility condition used in 2000. Those terms could vary by program and provider, so they should not be inferred from present-day licensing documents.
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What Microsoft claimed about Exchange 2000’s scale
Microsoft reported that Exchange 2000 could manage 2 million mailboxes on one Active Directory directory under a typical consumer-email workload. Microsoft and Compaq made that workload-qualified claim in an October 24, 2000 announcement. It is a vendor-reported figure, not a general capacity guarantee or independent benchmark for every hosted deployment.
Microsoft’s October 10 launch announcement also reported more than 250,000 Exchange 2000 seats in production and more than 40 ASPs delivering hosted services. The same announcement said 6,000 customers and partners attended the Exchange and Collaboration Solutions Conference 2000. These figures describe Microsoft’s launch reporting and were not independently audited in the cited material.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What services were planned for consumers and small businesses?
Microsoft’s October 24 announcement positioned Exchange 2000 consumer services for carriers, ISPs and portals. It described commercial licensing optimized for consumers and small businesses, partner extensions to Hosting Pack provisioning and migration services for MCIS 2.5 customers.
“With Exchange 2000 consumer services, small businesses and consumers can benefit from basic e-mail to value add functionalities like calendaring, instant messaging and unified messaging.”
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These were the program’s announced scope and plans at that date. They should not be read as evidence that every proposed add-on, migration service or partner implementation shipped on a uniform timetable.
How does the 2000 model differ from today’s hosted-software licensing?
Microsoft’s current Services Provider License Agreement (SPLA) guidance describes monthly licensing for eligible hosted software services and identifies ASPs and messaging or collaboration providers as relevant categories. Under that present-day program, the provider is responsible for licensing and compliance.
SPLA is current guidance subject to change; it is not evidence of the agreement term, reporting process, eligibility rules or licensing mechanics that applied to Exchange 2000 in 2000. The historically accurate conclusion is narrower: Microsoft announced subscription licensing for hosted Exchange and related products in July 2000, while today’s SPLA documentation explains a separate, current licensing framework.
Frequently Asked Questions
Was Exchange 2000 hosting available before Exchange 2000 launched?
Yes. Microsoft’s January 2000 announcement said providers were already hosting Exchange Server 5.5 and planning Exchange 2000 services. Exchange 2000 itself reached general availability on October 10, 2000.
Did the Hosting Pack automatically make Exchange a public email service?
No. It was a provider-oriented provisioning extension. ASPs could use and customize its registration, resource, security and logging functions to build hosted services.
Is the claim of 2 million mailboxes a universal Exchange 2000 limit?
No. Microsoft and Compaq qualified it as a typical consumer-email workload on one Active Directory directory; it was a vendor-reported capacity claim, not a universal independently verified limit.
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