Differences between Exchange Online (Office 365 – Cloud) and Exchange Server (On Premises)
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 (Office 365 – Cloud)
Exchange Server (On Premises)
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|
- Hardware Server
- OS Server Software
- Mail Server Software
- Antivirus Software
- Antispam Software
- 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
- 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.