Exchange On-Premise vs Exchange Online: Prime Differences

Admin ~ Modified: March 14th, 2024 ~ Microsoft Exchange Server ~ 7 Minutes Reading

In today’s world, Organizations are struggling to find the best email services. Among the several email services such as Microsoft( Exchange), Google (Gmail), and others, MS Exchange is the first choice of the organizations. The MS Exchange is divided into two versions, one is the hosted and another is the cloud. Because of these two variants of Exchange servers, the organizations cannot conclude to choose the right Exchange server. Therefore, we come up with a detailed discussion on Exchange On-Premise vs Exchange Online.

User’s Query:

After performing a lot of research on the Exchange server. I am still confused about what will be right for my enterprise whether it is Exchange On-premise or Exchange Online. Kindly suggest an efficient one.

Before finalizing the MS Exchange server for the organization, we should first determine the appetite of the organization. So, let’s explore the factors based on which the organization should choose the MS Exchange server.

Let’s Pinpoint Organizational Necessities

  • How much storage do we need?
  • What is the budget of the organization?
  • Do we have the right personnel to maintain the Exchange server?
  • Is the organization already maintaining the on-premise or do we need to set up the server room from scratch?
  • Does the organization need more facilities other than mailing?

Compare On-Premise vs Exchange Online

After evaluating the needs of the organization now is the time to find the difference between Exchange on-premises and Exchange online in detail.

1. Exchange Server Expenses

The MS Exchange Online server cost depends on the users. Microsoft charges for the Exchange Online server based on the subscription plan. The Exchange on-premise needs to be maintained by the organization so the cost depends on the infrastructure for the server.

However, the Exchange admin needs to provide the license to the users. For Instance, if the organization needs the Exchange server for a small period then it is cost-effective than the Exchange Online.

2. Data Integrity and Security

The security of the data is mandatory and it is a key point through which the users rely on the organization. MS Exchange Online is cloud-based and taken care of by Microsoft so the security of the data is completely dependent upon Microsoft. Organizations can rely on Microsoft to maintain the security of the data because there are regular updates in the Microsoft security algorithms to improve the protection of the data.

On the other hand, in the MS Exchange on-premise the organization’s IT team is responsible for data protection. Here Microsoft does not play a role, all the security features are managed by the organization itself.

3. Usual Updates in Exchange Server

Microsoft is always serious about upgrading its apps to improve the user experience. All the necessary updates to the Exchange Online are released by Microsoft.

But in the case of Exchange on-premise, there are no updates by Microsoft. It solely depends on the organization to add new features and updates to the Exchange on-premise server.

4. Availability vs Downtime

Comparing the Exchange on-premise vs Exchange Online based on availability. Microsoft provides a 99.9% SLA for the very high availability of servers. So, the users of Exchange Online can use Exchange Online without any interruptions.

In Exchange on-premise the organization needs to maintain its plan to deal with the downtime of Exchange server. The organization needs a highly skilled team to deal with upcoming disasters, server failover, and other threats.

5. Public Folders

The public folders are also supported in Exchange Online but create issues while migrating them to the modern public folders. That’s why the organizations maintain the public folders on the Exchange on-premise but it increases risk.

6. Anti-Spam and Malware Filtration

The Exchange Online provides advanced anti-spam filters to protect the data from phishing attacks. But in the Exchange on-premises, there is a need for other third-party tools to deal with the spamming and phishing attacks.

7. Data Storage

There are different plans available in Office 365 such as E1, E3, E5, and others. Therefore storage depends upon the plans that users are using currently. But to allocate the space in the Exchange on-premise, organizations need to add more hard drives.

8. Integration of Third-Party Applications

Introducing third-party applications to the Exchange Online is not possible. Microsoft Exchange Online is not compatible with third-party applications. On the other side, the Exchange on-premise can integrate third-party applications to improve their user experience.

The Exchange Online does not provide access to the EWS log files and the Exchange on-premise accepts the EWS log files to measure the application performance.

9. Client Latency Diagnostics

Microsoft provides effective solutions for connectivity issues with the Exchange Online server. Because it accumulates latency diagnostics. On the other hand, Exchange on-premise does not store the client latency diagnostics. 

10. Client Authentication

In Exchange Online, clients can authenticate with the help of Basic or OAuth. However, Exchange on-premises needs to be configured with the basic authentication.

11. Flexibility and Customizations

The Exchange Online is the one which is well equipped with the latest features. But in terms of flexibility to add more features to it based on the requirement. It is not the right choice. 

Exchange on-premise is an alternative solution to customize the features based on the user’s requirements.

Also Read: How to Migrate Exchange Server 2013 to Office 365 efficiently?

Pros and Cons Between Exchange On-Premise vs Exchange Online

Both servers either it is Exchange Online or Exchange on-premises have their pros and cons. So, let’s figure out them so that it becomes easier for you to choose the necessary one.

Cons of Exchange Online

  • The control of the server is in Microsoft’s hands.
  • It is subscription-based so there is a need to pay the amount regularly.
  • In the issues with the server, the support of Microsoft is required.

Pros of Exchange Online

  • Microsoft provides a 99.9% uptime guarantee.
  • The cost can be predicted as per the users.
  • No need to manage the server.

Cons of Exchange On-Premises

  • High chances of downtime.
  • Need the Exchange server expertise.
  • Expenses cannot be predicted.

Pros of Exchange On-Premise

  • All control of the server.
  • Easy to customize and add more third-party applications.

After calculating the difference between Exchange on-premises and Exchange Online. Now the selection of the right server is easy. But there are many complications with the Exchange on-premises server as we have discussed. So as per the current era and demand for cloud-based technology, migrate Exchange Mailbox to Office 365 is a great choice.

Because there are multiple benefits of Office 365 other than Exchange on-premise. So, let’s discuss how to relocate to Office 365 from the existing Exchange on-premise server.

Exchange On-Premise to Office 365

The Migrator Wizard Exchange Migration Tool is the one which is known for its services to migrating Exchange to Office 365. This tool is recommended by the Exchange and Office 365 administrators to complete the process without any hassle.

This tool offers several advanced features to shift the Exchange on-premise data to the destination Office 365 account. Because of its simple user-interactive dashboard, even non-tech users can also use this tool. During the migration, this tool maintains the complete folder structure as per the original in the destination Office 365 account.

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Conclusion

Organizations find it difficult to choose the one from Exchange on-premise vs Exchange Online. That’s why through this write-up, we have explained all the factors in detail to clarify the difference between Exchange on-premises and Exchange Online. Now, you can pick the right one for your organization as per the requirements. As of today, the cloud-based servers are more beneficial than the on-premises one. Therefore, we have also suggested a solution to successfully shift to Office 365 seamlessly.