By: MarkNetcomtech On: June 06, 2017 In: Netcom, Technology Comments: 0

We have moved into a digital age where the cloud subscription model has become king and we are seeing the consumerisation of IT services changing the way both home users and business procure IT.

However, a common question we are often asked is “Should I have my own exchange server or go with a Hosted Solution?” The initial response is how many users do you look after? If this is below 80 then having a hosted solution is certainly the right option, in terms of financials and manageability. If you are heading upwards then it may well be more cost effective to look at onsite Infrastructure and data centre.

In this article, we aim to help by looking at the differences between an On-Premise solution and hosted exchange solution and cover some key areas for consideration.

FeaturesOn Premise ExchangeOffice 365 Exchange
Pricing Large Upfront Capex Investment.

Having an on-premise solution does require significant upfront costs for hardware, licensing and storage. This can include annual fees, ongoing maintenance and upgrades as technology declines in performance.
Lower PAYG Opex Pricing.

This allows better business forecasting and financial control with predictable pricing. No upfront capital expenditure is required and no depreciation of hardware.
Cost of Ownership (TCO)Capital Required.

Aside from needing to budget for hardware and software additional costs will be incurred to cover hardware failures, administration and other maintenance related expenses.
Operating Expense.

With minimal upfront investment and no infrastructure to maintain, the ongoing IT costs are minimal which will result in a faster payback.
Time to Deploy Can be Months.

With upfront investment in hardware required, this can mean that procurement, setup and configuration of the on premise solution the timeframe will be much longer.
Just Weeks.

This can be configured and up and running in weeks as there is no hardware to configure and install.
Storage Increasing Demands and Costs.

With the volumes of email increasing per day as well as larger attachments and files you may need to continually add more capacity which carries a cost.
Just Weeks.

This can be configured and up and running in weeks as there is no hardware to configure and install.
Enterprise InfrastructureNot Practical for Small and Medium Sized Business.

The complexity and investment required in setup, backup, recovering and replication, DR and security make the onsite option very expensive and difficult for SME’s.

Removal of Burdens.

With a hosted solution, many of these complexities are removed and passed to the service provider who must adhere to stringent Service Level Agreements (SLA’s) such as 99.9% up time on email.
Scalability You Have Made the Investment.

If you wish to grow or downsize you will pay a price. You have either already invested in the hardware, or will require additional licensing/hardware to meet the demands.
Easy to Up and Downsize.

With a hosted solution, it is possible to reduce or grow your requirement simply and affordably without capital expenditure.
Security and AVWork Required.

It is critical for any email service that the environment provides up-to-date spam and virus patches and updates. These systems may require additional software or investment
Built in Protection.

Office 365 Exchange offer an advanced and continuously updated level of virus and spam filtering. This can eliminate unwanted mail before it hits the inbox.
DR and Business Continuity Email is Down.

Estimates suggest that SME’s experience around 40 hours of unplanned email downtime per year. This carries a significant costs and consequence to business.
Access Anywhere, Anytime.

Having adequate Disaster Provisioning means that your business is resilient. With a hosted service emails and files can be accessed at any time from any device. Your data is also replicated across multiple locations making this unlikely to be lost and simple to access.

Forecasts estimate that in 2017, Office 365 users will surpass 100 Million so the platform has been a great success and continues to grow with Microsoft continuously investing in the product. This also represents around 33% of the total Exchange market and continues to grow. There seems no longer a reluctance or fear around moving business services to Microsoft Office 365 or a hosted Exchange solution, and for smaller businesses, it makes perfect sense to go hosted rather than shell out on a shiny server and ongoing maintenance. For larger enterprise where staff number in excess of 80, the subscription costs and needs probably start to outweigh the benefits of a hosted solution, and an on-premise solution looks like a viable option.

We would be very happy to talk to you about your needs and answer any questions you may have about exchange or other technology requirements.

Call us on 0114 361 0062 and ask us a question.

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