Microsoft Exchange: Hosted vs On-Premise

Email is the foundation of business communication – let’s face it, try working without it. It’s irrelevant which industry you operate within; how many sites you have; or the number of employees that work there. All organisations require email. Microsoft Exchange is without a doubt one of today’s leading email service platforms – but the cost, how can you reduce the cost? Hosted versus On-Premise, if the cost of your email solution is of interest then you might want to take a moment to read this article…

Your choice of email service is dictated by a combination of reliability, connectivity, scalability, security and access versus the cost.

If you are a new business, building an onsite email system from the ground up equals large capital expenditure - upfront. If your business is established and using an internal server you are still responsible for ongoing maintenance costs or paying your IT staff or consultants to manage the system. With Hosted Exchange, you remove the need to invest in these costs, including: servers, racks, backups and security. Instead, you pay a predictable monthly cost for the service that you use which includes support, backup and consultation. No overspend, unexpected costs and no late nights working to fix issues.

So here’s the thing, weighing up the cost is pretty easy with Hosted Exchange – it’s a set monthly cost.

There’s a well-known, cost: outsource vs in-house, debate. For Hosted vs On-Premise Exchange, a direct cost comparison can be completed using various different components: racks, servers, backup, employees, security and maintenance as examples. However, the hardest expenditure to quantify is indirect costs. Take an internal server for example: Do you have internal resource available to support the solution? Are they experts on it? Do they have ongoing training on the system? Do you pay an external company to manage your systems? When was the backup last fully restored?

Were there any errors? It is these costs which can’t really be measured that are usually ignored. Then, to add to the complications, there are other high-level associated costs such as researching and evaluating the evolution of email. Is your organisation equipped to add voice, video or chat to its systems? Does it need to be? If so, when? Do you have experts on it? Cost is an important part of this debate but it boils down to what will provide the most value to your organisation.

Paying only for what you use and user-licensing which is managed by GPK allows for easy scalability and flexibility. This is particularly beneficial for fast growing organisations or those with more than one site.

For a GPK Hosted Exchange solution here’s a few more points that you might want to consider;

  • On-Premise email averages 40 hours downtime per year. GPK’s Hosted Exchange service has a guaranteed 99.9% availability (reinforced with a Service Level Agreement to ensure you’re always covered).
  • GPK takes daily data backups for disaster recovery and are equipped with the latest anti-spam and anti-virus solutions. We utilise highly secure, multi-redundant datacentres to ensure that your email is secure at all times. With a hosted environment you are also covered against events such as costly mail server corruption or hardware failures.
  • On-Premise Exchange compromises remote user productivity levels because it can require a VPN to access email. Connections can be frustratingly slow, unreliable and available connections may be limited. With Hosted Exchange remote users can directly access email via Outlook without using a VPN, for quick and easy access.

The shift from On-Premise to Hosted Exchange is accelerating rapidly. Organisations are pressured to move email into the operational budget like any other communication service, including telephone and mobile. Email expenditure on a manageable plan, per mailbox, per month, is flexible, scalable and, most importantly, predictable.

Contact GPK on 1300 854 223 to discuss how we can save you time and money on your email service.

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