While it must be said that Microsoft Exchange is perhaps the most effective secure email and communication solution available for your small business, it is the very versatility of the system for 2013 that makes this question relevant…
“Should you buy Exchange Server or subscribe to Exchange Online?”
The answer to this question may not be as simple as it seems because, as with so many things, it will depend upon your answers to a few other questions, including:
- Do you already own server hardware capable of running Exchange Server 2013?
- Are you comfortable with a cloud-based server solution like Exchange Online?
- What is your IT budget for the year?
While there is certainly something to be said for the in-house solution offered by Exchange Server, a reliable and secure solution that you can reach out and touch, virtually nothing is lost by choosing Exchange Online; especially for a small business with a limited IT budget.
Microsoft Exchange Server 2013
While the cost of licensing Exchange Server 2013 for your business to too complex to detail for you here, we can say that the cost of your license may range from a mere few hundred dollars for a small organization, perhaps 5 users, to a few thousand for an organization with more users. For this, you will receive the absolute latest, most up-to-date, most trusted, most popular server software available. Of course, you must also include the cost of the hardware to support this solution when determining the ultimate cost of Exchange Server.
Microsoft Exchange Online
The cloud-based server solution from Microsoft on the other hand, Exchange Online, offers you an equally powerful, secure server solution at a mere $4-$8 per month per user, with the higher fee including far greater storage, hosted voicemail, and enhanced Data Loss Protection. Beyond this, there is no hardware to buy. For an organization with few users, or single users, Exchange Online is a wonderfully cost-effective solution. (Compare Exchange Online subscription plans here.)
Cost comparison of Exchange Server vs. Exchange Online
While making an accurate cost comparison between Exchange Server and Exchange Online without knowing the details of a particular organization is difficult at best, the chart below can be used for comparison. Assuming a business composed of 10 users, as well as the need for new server hardware to host Exchange, the comparison below should give you an idea of the difference in the cost for your organization – at least, the beginning of an idea.
| Exchange Server Cost | One-Time | Yearly | Exchange Online Cost | Monthly | Yearly |
| for 10 users | for 10 users | ||||
| Server Hardware (5 yrs) | $4,500 | $900 | Plan 1 | $4 | $400 |
| Exchange License (approx) | $0 | $1,500 | Plan 2 | $8 | $800 |
| Total per year | $2,400 | $400-$800 |
The cost of an Exchange license can vary greatly based upon the number of users. Please check with North Star for more accurate information.
Granted, we have only begun to examine the benefits and costs of each service in the limited space available here. For a more in-depth look at the two server solutions from Microsoft, feel free to visit our Microsoft Exchange Server & Exchange Server Page. You may also like to go directly to the source and take a look at the Microsoft Exchange Page.
As your chosen Denver IT support specialists, the technology consultants at North Star, Inc. are here to help you make the right choice in communication technologies for your business or organization. Get in touch with us today with your IT Service Request, and one of our Denver network support specialist will come to you to discuss your needs, goals, and solutions.
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