Exchange Online vs Exchange Server 


There are so many reasons and benefit having the Cloud Office 365 Exchange Online Mail server on the cloud.

Having a physical Exchange Mail Server is a very expensive cost for any company to buy and maintain.

The upfront and running costs are very costly.

Exchange Online vs Exchange Server


Exchange Online (Office 365 – Cloud)

Exchange Server (On Premises)

Total Cost of Ownership

  • Hardware and SoftwareOffice 365 eliminates the need for physical and virtualized hardware,storage, and software licensing
  • Management and Maintenance – Microsoft provides full management and maintenance of Exchange Online with 24/7 Support
  • Backup – Microsoft provides automatic real-time backup and recovery for alternating datacenters
  • SPAM Protection – Microsoft provides built-in SPAM and Anti-Virus protection with Exchange Online
  • Encryption and Archiving – Microsoft provides email encryption and unlimited online archiving with its E3 plan for Office 365
You will need to buy hardware and software for

  • Hardware Server
  • OS Server Software
  • Mail Server Software
  • Antivirus Software
  • Antispam Software
  • UPS
  • SAN/NAS Storage
  • Mailbox Backup
  • Archival Mailbox Storage
  • Extended Maintenance Services for 24/7 (for Server)
  • Extended Warranty for Server and other Network Devices
  • Higher Service Level  Agreement (SLA) for Internet Services
  • Redundancy Hardware and Services (for failover)

Running Overhead and related Supporting Costs

  • Bundled in Office 365
  • Electricity of running server, air-con, UPS, backup
  • Maintenance services for software
  • Antivirus and Antispam software subscription
  • Maintenance cost of servicing aircon
  • Rental of Backup generator in case of building electricity servicing (requirement by PUB)
  • Need Internet Services with Static IP
  • Need to pay for services to monitor IP Address for Blacklist Listing Services.
  • Need to pay for Secondary MX Mail Server, in case of main mail server failure
  • Need to pay for redundant Internet Services, in case of primary internet access failure.
  • Rental Cost of Office Space
  • The cost of Server Rack or any furniture.
  • Cost of Cabling/Labeling
  • Additional Storage cost for inactive or old email mailbox

High availability

  • High availability and redundancy is built in and there is a financially-backed 99.9% SLA for Exchange Online.
  • Can implement Exchange Database Availability Group (DAG). Will lead to increased Costs.

Future Proof

  • No need to upgrade anymore. No more downtime for migration to newer version or hardware
  • Need to engage time-consuming and expensive migration exercise every 4-5 years.
  • Migration may cause some downtime.
  • Newer version every 3 years. Exchange 2003,2007,2010,2013,

Increased IT administrator

productivity and manageability

  • Lesser work to administer and manage
  • Need to track and monitor for disk space.
  • Need to clear mail logs.
  • Need to track and manage backup for User Mailbox.

Addon Features