International Business Machines Corp.’s IBM vaunted software portfolio includes applications to help companies crunch huge amounts of data and manage their online storefronts. It also includes programs like Lotus Notes.

“I go to a party, and I almost immediately get insulted,” says Eugen Tarnow, a director of the consultancy Avalon Business Systems, which sells the aging email software to businesses. “They say, ‘Lotus Notes, that’s still around?’ It’s no fun.”

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