Exchange On-premises or Office 365?

Exchange Server has owned about 75% of the market share since these services started taking off. However, the appearance of cloud services and its noticeable growth changed the market behavior. According to Statista, Office 365 started to show significant growth at the beginning of 2018, from having 39% of the market share against Exchange Server to owning 57% in 2021. This leaves Exchange On-Premises with 43% of the share. 

The acceptance rate for Office 365 is growing among organizations, and it may seem like it is the best option for you too. But there are certain aspects to take into consideration before deciding. 

Each organization has unique needs, depending on the number of employees they have or the industry they belong to. Having the answers to the requirements listed below will give you a better idea of what might work best for your company. 

  • Type of business 
  • Total expenditure on hardware/software resources 
  • How long will you need the services? 
  • Total cost for managing on-site resources 

Benefits of Exchange Server On-Premises 

  1. Total authority over the hardware and software of Exchange. This makes it easy to configure specific settings and manage mailboxes. 
  2. Total control over data updates, backup, and restorage. Having an on-premises environment gives quality data management. 
  3. Integrated applications. You can integrate a variety of business applications within the on-premises Exchange environment. 
  4. Archive emails. With Exchange on-premises you can archive emails at the desired location, and easily find mails through its advanced search feature. 
  5. Efficiently upgrade security plans. 
  6. Easily fix any network issues. Having the Server physically close allows easy access to fix any network related issue. 

You can purchase Exchange Server on-premises through the client access licenses. However, you’ll need to deploy the required hardware and installation of Exchange. 

Benefits of Office 365 (Exchange Online)

  1. Functionality. Users can intuitively control their emails, as it is simple and easy to use. 
  2. Uptime. Microsoft refers a 99% of uptime with Exchange Online. 
  3. Cost efficiency. By not needing an on-premises server, all the costs of installation and management are out of the picture. 
  4. Scale at speed. Office 365 flexibility and simplicity will grow alongside your company, at its own pace. 
  5. Robust data security. It ensures that your data is safe in Microsoft’s protected cloud. 

When it comes to disadvantages, some say that you might be unaware of your data location or that the integration with on-premises applications can be difficult. 

With Exchange on premises, many would mention the cost of the maintenance and upgrade for the Server. Others might consider the need for an on-site administrator for management and security. 

Technology is constantly evolving, which is why It’s important to know and understand the needs of your businesses. Knowing the advantages and disadvantages of each platform, and your company’s requirements will make your decision making more efficient. 

Whether online, on-premises or hybrid environments work best for your organization, our team is here to help you through any stage of your Exchange journey. To more information about our Exchange services or plans and pricing, please, contact us.