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Whether you are a Business owner, an IT administrator or a Technical consultant, the decision of how to manage and maintain Microsoft Exchange within a business is not something to be taken lightly.

Initially the only real option for utilizing Microsoft Exchange Server was to purchase a server, acquire all of the required Microsoft licensing and hire a trained IT administrator to manage the Exchange server in house. As business continues to move to on-demand and hosted solutions more companies are outsourcing key business applications, web sites, and databases to reputable web hosting companies making Exchange Hosting a very viable option for businesses to receive reliable, quality email management in a high security data center without some of the resources and costs needed to manage Microsoft Exchange in house.

Before a decision is made either way it is important to take a look at your organization and its needs. For larger corporations with a seasoned IT staff to maintain and support Microsoft Exchange Server, staying in house is typically the desired option. The initial capital investment for Exchange and the required hardware is not much of a challenge for larger organizations and with ample resources to support end users and perform server maintenance, an in house strategy for Exchange is most frequently used. As another option some larger companies will utilize a dedicated/managed server or colocation services from a hosting company if they do not have the redundant systems, backup power and security required.

For small to medium sized companies the answer is not always as easy. First and foremost it really comes down to budget. The costs of Microsoft Exchange Server in terms of hardware, software, and licensing in addition to IT staff resources can be prohibitive to many organizations.

Typical reasons Companies move to Hosted Exchange are:

• Consistent reliability and downtime issues with an existing In house Exchange server.
• To bring down the excessive costs of running Exchange In-House
• The primary IT staff member who managed Microsoft Exchange recently left the company
• The company is looking for increased support for mobile devices
• A new company looking for advanced email capabilities at a small business cost
• Needs for increased collaboration not offered by POP3/IMAP or Webmail solution.
• Need to free IT staff time to focus on other initiatives.

Below is an estimated cost comparison between running and managing Microsoft Exchange on an In House server vs. using Hosted Exchange for 10 users. The estimates are for the first year, which for In-House includes an initial capital investment for hardware and software.

Cost Comparison of In-House Exchange Vs. Exchange Hosting

Review your company’s requirements and available budget to decide what solution is right for you. Both Exchange options have their positives and negatives depending on your needs and current situation. Regardless if you choose Hosted Exchange or decide to go with Microsoft Exchange Server in house, email is mission critical. Surround yourself with experienced individuals whether it’s in the form of a third party provider or In-House IT talent.

Here are Some Additional Microsoft Exchange Resources

About Microsoft Exchange Hosting
A descriptive article on Hosted Exchange and its advantages over Exchange Server for small to medium sized businesses.

Microsoft Exchange Server vs. Hosted Exchange
A helpful guide for the beginning stages of selecting a Microsoft Exchange solution for your company.