Microsoft 365

Secure Business Class Email: On-site Vs Cloud

Sep 5, 2021

So what’s right for your business? This is a common question that presents.

The Exchange Server (on-site) has traditionally dominated the email server market holding significant market share, with new features being constantly added providing great services to its customers.

Since cloud services began to dominate the market, Exchange Server is continually facing competition from Microsoft 365 in terms of market share.

When following the pattern in which organisations adopt cloud technologies, you can easily determine that Microsoft 365 is gaining more acceptance and if I look at our client base, soon will be (if not already), a more significant player than the on-prem Exchange Server.

So, how do you determine which platform will deliver greater value to your business?

Here are some pros, and cons of both platforms.

You can choose Exchange Server on-site or Microsoft 365 as both platforms are from Microsoft. To help make 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-site)


  • You have total authority over the hardware and software of the Exchange.
  • ou can easily configure the specifications or settings and manage the mailboxes and mail flow.
  • You have total control over system updates, backup, and restore of the data.
  • The on-premises environment enhances the quality of data management.
  • You can integrate many other business applications with the Exchange Server.
  • You can archive the emails at the desired location and use advanced search facilities.
  • You can easily upgrade your security.
  • Due to the proximity of Server, the throughput and access time for the mailbox is strong. Any bad network connection can be easily fixed.


  • Maintenance and upgrade of the hardware and software can be expensive and ongoing.
  • There should be an on-site Exchange administrator responsible for managing the mailboxes, stopping the unauthorized access, and recovering the deleted/corrupt mailboxes.
  • The initial installation requires high investment.
  • You need to expertise in multiple IT skills like DNS Services, firewalls, and Active Directory to implement Exchange Server.

Microsoft 365 (cloud)

Microsoft 365 is subscription-based cloud platform from Microsoft. There are multiple plans which you can subscribe based on your needs. Unlike Exchange Server on-site, Microsoft 365 is available in different plans like Microsoft 365 Business, Microsoft 365 Enterprise


  • You can get many essential services like Exchange Server, Skype for Business, OneDrive for Business, SharePoint, etc.
  • All the facilities are available instantly.
  • You do not need to pay for any updates.
  • Microsoft maintain the platform – hardware and software updates at their end.
  • Cloud platform reduces your on-site expenditures which you can invest in other resources.


  • Microsoft being a global company and you are completely unaware of the location of your data.
  • Manual data migration requires third-party assistance and is quite time-consuming.
  • Integration with the on-premises applications not straight forward.
  • There are limited archiving / backup abilities in Office 365.
  • Require continued internet access to update and search.

When you compare both the platforms (Exchange Server and Microsoft 365), it is difficult as they are both great products. It all depends on your professional needs and preferences. Tech Precision have strong capabilities in both platforms so if you would like a 3rd party opinion, we are happy to help.

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