IBM In Denial Over Lotus Notes — Is the end near for this tired and miserable product that NOBODY likes?

NEW YORK – The marketing folks in IBM’s Lotus division are starting to sound like the Black Knight in Monty Python and the Holy Grail, who insists he’s winning a fight even as he loses both arms and legs: “‘Tis but a scratch,” the Black Knight declares after one arm is lopped off. “Just a flesh wound,” he says after losing the other. “I’m invincible!”

The same goes for IBM’s (nyse: IBM – news – people ) Lotus, which keeps declaring victory even as Microsoft (nasdaq: MSFT – news – people ) carves it up.

First Microsoft consumed Lotus’s 1-2-3 spreadsheet business. Lotus spinmeisters insisted Microsoft wasn’t really winning because Lotus 1-2-3 still had a larger installed base. Eventually that wasn’t true either.

Now Microsoft’s Exchange has clawed its way to the top of the corporate e-mail market, displacing Notes/Domino, which once dominated e-mail and was the main reason IBM paid $3.2 billion to acquire Lotus in 1995.

via C. Levy