One of the challenges of modern enterprises is finding the most effective tools for essential processes, including sharing, organization, storage, communication, and connectivity. There are a variety of IT solutions out there that can help enterprises find the right resources to meet their needs. 

Microsoft Exchange is one of the top platforms for communication, offering comprehensive messaging for organizations. These exchange services come in two forms to meet the needs of the enterprise. Both hosted, and cloud services have advantages and disadvantages that can make it difficult for a business to choose between them. 

Hosted and cloud services can benefit the business depending on its needs. To best understand the differences between the two and which option you should choose, you will need to fully grasp both on-premise and exchange online services. 

On-Premise Services

Exchange on-premises services require the user to set up and maintain both the Exchange server and the server hardware. The user will also need to obtain the Client Access Licenses. The cost of on-premises services is greatly elevated depending on the intended length of the Exchange server and its hardware. 

For enterprises that intend to utilize the server and hardware for years to come with a few upgrades, on-premises exchange services seem to be the less costly choice. 

Security needs are taken care of by your on-premise team. This team is made up of IT experts who know how to maintain an Exchange system constantly. 

The on-premises version of Microsoft Exchange requires each business to perform hardware and software updates manually and promptly. However, after 2016, there is no new version to update, which means that the on-premises Microsoft Exchange is slowly phasing out. 

Regarding availability, the on-premises version of Microsoft Exchange may have issues with the server, setting up the user to deal with the server failing. While many businesses have switched to the Cloud, on-premises services can be helpful while waiting for that extra spot to open up. However, remember that the mailbox quota can only hold the server’s capacity. 

On-premise services use public folders, which can be helpful during the business’ migration to the Cloud. These folders have a security risk that can make them unappealing to certain enterprises. 

Exchange Online

Exchange Online uses the Cloud to ensure safe, secure, and private communication and connectivity. The Cloud option can cost less than the on-premises option, and the price is flexible, with the ability to pay per user. 

Cloud services also tend to be more secure than on-site services. With increased security efforts for Exchange Online, users tend to have peace of mind over the state of their data. 

Exchange Online provides automatic updates, ensuring that all applications and software are up-to-date and ready to be used. The Cloud program is readily available and easy to use, making it a great asset for most enterprises.  With plenty of storage for many businesses, the Cloud option seems strong, secure, and organized.

Migration from on-premises services to Exchange Online can be a very involved process. However, it is essential for businesses to be ready to make the switch. Migration can prevent future compatibility issues and ensure that everything flows seamlessly. On top of that, Exchange Online comes with spam and malware filtering, making it safe for enterprises. 

The Future of Online Exchange Services

While there are some advantages of on-premises services, online exchange, or Cloud, services are rapidly becoming the most popular and essential option. Migration to online services is commonplace, as the Cloud has shown to be an essential tool for business organization and communication. 

There are parts of on-premises services that provide great help to enterprises. However, when it comes to the future landscape, Cloud services offer the most viable option. They are secure, private, and accessible, with great integration and collaboration capabilities. Overall, they meet the needs of modern businesses. 

On-premises services may not be leaving just yet. Still, they are becoming increasingly less relevant to today’s business needs. By choosing Exchange Online, you can prevent the need for migration in the future and give your organization smooth and seamless processes right away. 

Contact us at MSG to discuss how we can assist your business in enjoying the benefits of Microsoft Office 365 without the significant expense needed for hardware and software. We will manage your exchange services and ensure that your business can easily synchronize across platforms and devices.