On-Premises Exchange Vs. Office 365

Aftab Alam | Updated On - 08 Sep 2021 |

Read time 3 min

Microsoft Exchange Server has been a champion of email and calendar services for a business. It has maximum market share in comparison to other professional servers and Microsoft has constantly updated it with newer features and better control, security, and management.

Additionally, the previous decade has seen the powerful emergence of cloud platforms. Microsoft has the most advanced cloud services in its Office 365 plans. There are home, student, business, and enterprise versions including various cloud applications. Office 365 has covered Exchange and bundled it with several other cloud services like SharePoint Online, MS Word, PowerPoint, Excel, Access, OneNote, Skype for Business, and many others.
So, if you are in a dilemma that which platform is better and suitable for your organization, then here is a detailed list of features, pros, and cons of both platforms.

Understand the requirements of your business

You can choose Exchange Server on-premises or Office 365 as both platforms are from Microsoft. But, before making your selection, you need to understand the requirement of your business. So, several factors can give you the answer to which type of Exchange Server will be better for your business –

  • What is the total cost for managing the on-site resources?
  • What type of business does your organization run?
  • What is the total expenditure on hardware and software resources?
  • What kind of benefits Exchange Server on-premises or Online will give?
  • For how long do you need application?
Exchange Server (On-premises)

Exchange Server (on-premises) is available for purchase along with client access licenses. You only need to deploy sufficient hardware and install Exchange and clients as per your needs.

  1. The organization has total authority over the hardware and software of the Exchange. You can easily configure the specifications or settings and manage the mailboxes and mail flow.
  2. You have total control over system updates, backup, and restore of the data. The on-premises environment enhances the quality of data management.
  3. You can integrate many other business applications with the Exchange Server.
  4. You can archive the emails at the desired location and use advanced search facilities.
  5. You can easily upgrade your security plans.
  6. Due to the proximity of Server, the throughput and access time for the mailbox is quite high. Any bad network connection can be easily fixed.
  7. The Public Folder shares the single mailbox into multiple users. It makes the storage efficient.
  8. The security is at high and multi-level control and management.
  9. Durability, accessibility, and maintainability of on-premises mailboxes is almost 100%.
  1. Maintenance and upgrade of the hardware and software is expensive.
  2. There should be an on-site Exchange administrator responsible for managing the mailboxes, stopping the unauthorized access, and recovering the deleted/corrupt mailboxes.
  3. The initial installation requires high investment.
  4. You need to get expertise in multiple IT skills like DNS Services, firewalls, and Active Directory to implement Exchange Server.
Office 365

Office 365 is subscription-based cloud platform from Microsoft. There are multiple plans which you can subscribe based on your needs. Unlike Exchange Server, Office 365 is available in different plans like Office 365 Home, Office 365 Personal, and Office 365 Education.

  1. You can get many essential services like Exchange Server, Skype for Business, OneDrive for Business, SharePoint, Skype, etc.
  2. All the facilities are available instantly.
  3. You do not need to pay for any updates.
  4. Microsoft does all the hardware and software updates at their end, and it does not affect the business functioning.
  5. Cloud platform reduces your on-site expenditures which you can invest in other resources.
  1. You are unaware of the location of your data. Microsoft has data centers in different parts of the globe, and you are completely unaware of the location of your data.
  2. Manual data migration requires third-party assistance and is quite time-consuming.
  3. Integration with the on-premises applications is difficult.
  4. There are no proper archiving abilities in Office 365.
Final Words

When you compare both the platforms (Exchange Server and Office 365), it would be quite hard to find that which one is better. It all depends on your professional needs. The Kernel has multiple tools to meet the requirements of Exchange and Office 365 users – to recover corrupt exchange database, migrate to different platforms, and back up data. For such requirements, you can try tools like Kernel for Exchange Server, Kernel Migrator for Exchange, Kernel Office 365 Backup & Restore, etc.