Read time: 6 minutes
Businesses looking for a reliable cloud solution often compare the different features of Hosted Exchange or Microsoft 365 to see which platform suits them the best. Both have prominent features that can help businesses conduct business operations and daily activities smoothly. So, let’s focus on the key factors based on which enterprises choose a cloud platform and see which one among these two can meet the expectations. Get all details on Office 365 vs Hosted Exchange now.
Office 365 vs Hosted Exchange: Comparison at a Glance
| Feature | Office 365 | Hosted Exchange |
|---|---|---|
|
Primary use case |
Complete suite with productivity and collaborative tools. |
Only emails, calendars, contacts, and shared mailboxes. |
|
Mailbox size limit |
Depends on the plan, ranges from 50GB to 100 GB per user (depends on the host) |
Depends on the hosting plan |
|
Availability of Office apps (Word, Excel, PowerPoint) |
Available in most of business and enterprise plans but not in every plan |
Not available, must be purchased separately. |
|
Security |
Security is managed by Microsoft. |
Security is managed by the host. |
|
Subscription costs |
Subscription and licensing costs. |
Hosting fees or any additional costs. |
|
Updates |
Microsoft frequently introduces new updates and security patches. |
Host manages all the updates. |
|
Best for |
Organizations who need Microsoft cloud email and productivity services. |
Organizations who need hosted email and provider based service. |
Differences Between Office 365 and Hosted Exchange
1. Data Security
First and foremost, data security has always been a primary aspect of deploying cloud or hosted services for businesses. Both Office 365 and Hosted Exchange offer extensive protection to the resources and digital assets. But the available security features are fully dependent on the subscription and services opted for.
For Office 365, organizations are fully responsible for their compliance needs. With Hosted Exchange, the IT department needs to manually handle many security checks and upgrades. And that results in more downtime as compared to Office 365.
2. Connectivity & Synchronization
Exchange Online and many Hosted Exchange services offers email and calendar sync functionalities on compatible mobile devices. Exchange Online works with Microsoft’s cloud services but on the other hand, Hosted Exchange functionality is totally based on the provider’s configuration.
3.Pricing
The main factor that almost everyone keeps in mind is pricing. So, how does the pricing differ between Office 365 vs Hosted Exchange? Look at the details below.
| Service / Plan | Pricing (USD) | Billing |
|---|---|---|
|
Exchange Online Plan 1 |
$4.00/user/month |
Annual |
|
Exchange Online Plan 2 |
$8.00/user/month |
Annual |
|
Microsoft 365 Business Basic |
$7.00/user/month |
Annual |
|
Microsoft 365 Business Standard |
$23.50/user/month* |
Annual |
|
Hosted Exchange |
Around 10-15+ per user/month |
Provider-dependent |
Additional costs to consider
| Microsoft 365 / Exchange Online | Hosted Exchange |
|---|---|
|
Additional licences for advanced security, compliance or other services |
One-time setup fees |
|
Migration services or tools, if required |
Migration labor and configuration |
|
Additional backup or archiving services, if required |
Server customisation |
|
Optional add-ons and applicable taxes |
Third-party backup, security or compliance add-ons |
4. Scalability & Development
Microsoft 365 allows organizations to configure users and change subscription plans as per the needs. On the contrary, the Hosted Exchange scalability is based on hosting provider’s capacity, mailbox limits and upgrade options present. Always assess your needs and then opt for the ideal one.
Making A Choice: Office 365 vs Hosted Exchange!
If you have decided on the right solution for your business based on the above points, it’s great! But, if you haven’t, consider the below points to make a clear choice. Let’s check out the benefits of hosted Exchange and Office to see what suits different scenarios.
1. Choose Office 365 for your organization if:
- Your organization requires a full suite with different productivity and collaborative tools like Word, Excel, OneDrive, SharePoint, Teams, etc.
- The organization wants to manage email and other services at a single place.
- You need a scalable platform to add users over the time.
- You need advanced security features to protect your organization’s data.
2. Choose Hosted Exchange for your organization if:
- Your organization only needs Exchange-based emails, contacts, and calendars.
- You have no use for a broader productivity suite.
- You’ve a limited budget.
Now that you know the best cloud solution for your business, it’s time to choose a migration method for your requirements. If you’re using an existing server and want to move to Office 365, you can simplify your migration process by taking the help of a dedicated Office 365 Migration tool.
Kernel Office 365 Migration can help in this case as it can migrate your data from Exchange Server to Office 365 or Exchange Online in simple steps. The tool also allows you to migrate selected items from mailboxes as per your requirements. You can even save the migration report in CSV format for future references.
Conclusion
We hope you are well-through with the benefits of Office 365 and hosted Exchange. While comparing Office 365 vs hosted Exchange, organizations must analyze things like how much control they want over their data, how easily does it fit with their existing workflow, and whether it’s scalable for any future changes or not. Understanding your requirements and the different types of features both Office 365 and Hosted Exchange offer can help you make the right decision.
Frequently asked questions
A. No, Office 365 and Hosted Exchange are not the same. Microsoft 365 is a broader cloud productivity platform, but Hosted Exchange generally refers to Exchange Server email hosted by a third-party provider.
A. Even though it depends on the requirements of the small business, Office 365 is still considered a better and a more cost-effective choice for small businesses.
A. Yes, Hosted Exchange may provide email and calendar synchronization services in mobile devices if the host supports it.
A. No, you will not get access to advanced security features like Data Loss Prevention and Multi-Factor Authentication in all plans of Office 365. These features are available only in higher plans like Business Premium, E3, E5, etc.
A. You can migrate data from Hosted Exchange to Office 365 by setting up the source and destination mailboxes, selecting an appropriate migration method, choosing what data gets migrated, and finally starting the migration.
