Exchange Server (Office 365 – Cloud)
Exchange Online (On Premise)
Total Cost of Ownership
Hardware and Software – Office 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
OS Server Software
Mail Server Software
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
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 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.
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.