Although many decision-makers claim on-premise Exchange implementations are less expensive to deploy and operate than hosted Exchange, the opposite is often true. Just add up the dollars:

  • A 10-person on-premise Exchange solution costs $389.78 vs. $27.00 per seat per month for a hosted Exchange solution, for a total whopping savings of $362.78 or 93 percent, according to Osterman Research.
  • At 100 users, on-premise costs $37.29 per seat each month compared with a hosted service’s cost of $12.25 for savings of $25.04 or 67 percent.
  • With 1,000 users, on-site costs $20.72 for each seat every month vs. $9.85 for hosted for savings of $10.87 or 52 percent, Osterman Research finds.

It is not surprising then that even some large enterprises are migrating to hosted Exchange: GlaxoSmithKline, for example, is moving its 100,000 users to hosted Exchange, the giant pharmaceutical company said in March 2009.

There are other savings, too. Because the cost-per-seat is fixed over the contract’s lifetime, your business has a predictable monthly outlay without the risk of unforeseen expenditures. If you support Exchange internally, you must take into account potential disruptive forces such as natural disasters, power outages and office relocations that can add unforeseen costs to your on-premise Exchange management budget.

As you add employees, you run the risk of maxing out your internal infrastructure, forcing you to expend dollars and hours buying and installing servers, storage and other infrastructure to support new hires. Of course, this adds more costs to your existing Exchange budget at a time when you would rather spend IT funds on using technology to solve business challenges.

Save money and enhance your communications by migrating to hosted Exchange. Contact us today for a free quote.