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Cost analysis on Hosted Exchange v/s In-house for 250 users MS Exchange

Costs of Hosted Exchange

Cost is the major reason why hosted Exchange is rapidly growing in popularity.

Upfront costs are several thousand dollars for even the most basic setup, putting in-house Exchange beyond the reach of smaller businesses.

Ongoing costs for in-house Exchange are also high. Either companies need to hire IT staff or pay consultants to fix each problem, adding thousands more dollars in annual costs.

In-house Exchange Hosted Exchange from Infotech
Servers All items
must be purchased.
Total cost
for a small installation = Thousands of dollars
All items
included as standard.
Total cost
for a small installation = $11.95/month for each user
Storage
Backup
Software licenses
Email security (anti-virus, anti-spam)
IT staff time for deployment
IT staff time for maintenance
Quality physical environment and cooling, uninterruptible power

Reliability of Hosted Exchange

Having email and collaboration that always works is now essential to doing business - and downtime is unacceptable.

In-house Exchange servers - usually in a basement or closet not designed for sensitive IT equipment - cannot match the reliability of hosted

Hosted Outlook/Exchange companies like Infotech manage servers in large purpose-built datacenters with backup power, air conditioning and Internet connections. Below are the main threats to your email system:

In-house Exchange Hosted Exchange from Infotech
Servers One server - all email depends on this. Cluster of servers - if one stops working, the others take over
Data storage One or two hard disk drives - all email depends on these Large cluster of drives which automatically share workload if one fails
Backup Manual - sometimes slips due to time pressures Automatic and frequent
Email security (anti-virus, anti-spam) Updates not always made frequently enough Continuous 24x7 updates
Data connection Single data line to the Internet Multiple connections, direct to Internet backbone
Physical environment Low-quality environment, power, air conditioning systems Tier-4 datacenter (as used by Google and Yahoo!)

Features of Hosted Exchange

Exchange is great because you can expand it with add-on features. However, this is difficult in practice with an in-house system, as each feature needs to be installed from scratch.

With hosted Exchange, all features are already installed and ready to 'turn on' if you wish to use them. Below are features you may wish to add:

In-house Exchange Hosted Exchange from Infotech
Wireless email
Get your email and data on devices like a BlackBerry or Treo
Purchase separate (expensive) servers and software licenses, install them manually Add instantly through online control panel
Archiving
Create a backup of your emails for compliance or security purposes
Either a time-intensive in-house effort or another external service to manage Add instantly
Extra disk space
Expand storage with your business
Purchase and install additional disk drives Add instantly
Advanced anti-spam
Sophisticated blocking of spam to keep employees productive
Additional costs for software and maintenance Add instantly
Anti-virus
Reduce the risk of damage to your files and IT infrastructure
Additional costs for software and maintenance Included as standard
Fax via Email
Let employees receive faxes anywhere they go, right in their email inbox
Separate service to manage or self-deploy Add instantly