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Guide: Hosted Exchange Server vs. your own email server – a comparison.

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Hosted Exchange Server vs. your own email server

In this article, you will read about
 

  • Which companies should rely on hosted Exchange servers and which on their own email servers?
  • Where the advantages of a hybrid usage model lie and
  • How on-premise servers and Microsoft Exchange Server 2019 differ in detail.


"Don't tell anyone! This isn't what we're supposed to be working on," Ray Tomlinson said to his colleagues. He is a computer engineer at BBN Technologies. Ray had just sent the first email. The time? The 1970s. Back then, no one could have predicted how important email would become.

But by 1973, over 2,000 computers were linked to Arpanet, the predecessor of today's Internet, and could be used for email communication.

Today, more than 45 years later, email has become an integral part of our lives. According to Stat, over 257 billion emails will be sent and received every day in 2020. But even without looking at the statistics, it is clear that no company, self-employed person or freelancer can still manage their daily work without using email.

 

Which server solution for which company size?
 

While one-person businesses can still get by with the free services offered by major providers such as Google, Microsoft or Yahoo, smaller companies are already considering more professional solutions and thus their own email servers. This allows them to control important communication channels themselves and manage accounts, signatures, contacts and calendar tasks independently.

Large companies that operate their own on-premises Exchange Server – i.e. their own data centre on their own hardware – usually also have the qualified personnel to keep the technology up to date.

The situation is completely different for small and medium-sized enterprises. They often lack the resources or expertise needed to operate their own email server, for example to install relevant updates promptly while ensuring the ongoing operation of the Exchange Server. For small and medium-sized enterprises, a hosted Exchange Server, i.e. a hybrid solution, can therefore be a sensible option.

What exactly does that mean? The server is essentially rented, and the tasks required for its operation are handled by the provider's specialist staff. This allows companies with a hosted server to work more productively, as they do not have to worry about maintenance, backups and updates.

If the company expands, it is possible to simply book an additional account in the same domain. This allows companies to easily expand their leased IT resources and adapt them to their current needs. In addition, the mailbox of a Hosted Exchange Server also automatically synchronises calendar and contact entries on all end devices. Companies that operate their Exchange Server in the 2019 on-premises version can also use it to access their Exchange Online accounts. With Exchange Server 2019 as a hybrid solution, it is therefore easy to host mailboxes locally – i.e. on-premises – and at the same time take advantage of the benefits of the cloud service, such as Online Protection.

 

Who benefits from a hybrid usage model?
 

Small and medium-sized businesses in particular benefit from a hosted Exchange Server solution. Even for companies that have previously used an older version of the Exchange Server software in the Small Business variant, it may be worth considering a hybrid solution. This is because Microsoft is now increasingly focusing on the development of cloud variants.

The practical aspect: licences that have already been purchased and the structure of the existing on-premises server can continue to be used in parallel with the applications from the cloud. Microsoft Exchange Server 2019 has been optimised precisely for this dual solution.

A comparison of the alternatives:

 Hybrid: Microsoft Exchange Server 2019Hybrid: Microsoft Exchange Server 2019 
Groupware for corporate communicationsOnly with special productsAvailable 
Mobile productivity: Outlook app for iOS and AndroidAvailableAvailable 
Size of post office boxIndividually configurable for each mailboxSpecified and defined by the provider 
Benefits
  • Self-hosted with desired location without cloud service – existing redundancy
  • Data protection independence from third-party providers – transparent and defined costs per mailbox
  • Control over your own data
  • Existing redundancy
  • Transparent and defined costs per mailbox
  • IT security, backups and maintenance are carried out by the provider.
  • Combination with other cloud services
 
Disadvantages
  • IT security issues are the responsibility of the company.
  • Licence management and costs
  • Higher costs for the same performance compared to the hybrid solution
  • Data is stored in a cloud (location sharing)
  • Costs can be high above a certain level
  • Configuration options are limited
 
Recommended from mailbox size> 500 employees> 500 employees 
Suitable for:   
EducationYesNo, due to data protection regulations. 
SMEs (small and medium-sized enterprises)YesYes 
KMB (large enterprise)YesYes 
GovernmentYesNo, due to data protection regulations. 

Exchange Online

Man checks his emails on his tablet while travelling

Exchange Online

Keep track of everything while on the move: access your emails, address book & calendar anytime, anywhere.

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