On-Premise vs. the Cloud




This table provides a snapshot comparison of cloud vs. on-premise email solutions and offers some insight on why cloud-based email is growing.

Feature On-Premise Email Cloud-Based Email

Storage

Spiraling Storage Costs.
As your email volumes grow, generating more and more messages per day as well as larger email attachments, you need to continually add more server capacity. When your future growth is uncertain, this becomes even more challenging.

Predictable Costs.
Cloud-based solutions leverage the latest and greatest storage technology, shielding customers from the complexity of storage growth and management, while providing them with the best technologies possible as soon as they are available. 


Pricing

Heavy Upfront Investment.
Traditional, on-premise solutions have heavy upfront costs, unpredictable expense spikes (often associated with annual software licenses), storage growth fees, server and equipment failures, and ongoing maintenance costs.

Pay-As-You-Go, Monthly Pricing.
Cloud-based solutions offer predictable, monthly pricing, generally charged on a flat per user, per month basis (often between $10 and $15 for each mailbox). This makes budgeting easier and streamlines your cash flow, since you don’t have to worry about depreciation of expensive upfront capital expenses.

TCO (Total Cost of Ownership)

Capital Expense. 
With on-premise messaging solutions, you need to budget for significant hardware and software capital expenses. Additional costs come in the form of spare parts, overtime for administrative staff (especially if you want 24–7–365 reliability) and other maintenance-related expenses.

Operating Expense.
With cloud-based email solutions, there are no initial upfront commitments for infrastructure, hardware or licensing, and ongoing IT costs are minimal, so the returns are immediate, which results in much faster payback periods.

Deployment Time
Weeks or Months.
Because of the upfront capital investments, it takes several weeks or even months to properly setup and configure most on-premise solutions.
Days.
Customers can deploy cloud-based solutions in days, rather than weeks or months, because there is no hardware or software to install and provision. 

Enterprise Class Infrastructure

Not Practical for Small and Medium-Sized Businesses.
The cost and complexity of implementing backup and recovery systems, local clustering and high availability, and offsite replication of archives to a disaster recovery site is overwhelming for many companies to handle internally.

Table stakes for Multi-Tenant Environments.
Cloud-based messaging providers offer high availability to all of their customers and invest millions of dollars to build secure and reliable infrastructures. This usually includes server clusters and other forms of redundant hardware to ensure the cloud-based solution is always available. Plus, cloud email customers usually benefit from geographically dispersed, SAS-70 II Tier-4 compliant data centers, full redundancy and 99.99% network availability.

IT Expertise

Lack of Messaging Expertise.
Estimates suggest that IT labor makes up approximately two-thirds of messaging costs. Even a “simple” Exchange Server deployment is complicated, and with complexity comes cost. The first cost you are likely to encounter is  training your administrative staff to design, deploy and maintain an effective Exchange Server environment. As expensive and time consuming as the training is, though, it quickly becomes obsolete.

Messaging Experts.
Cloud-based solutions let you refocus your IT resources on more strategic initiatives to help grow your business, instead of merely maintaining the systems required to operate it. Most cloud-based providers employ experienced and certified staff to maintain their systems. In light of their service level agreements (SLAs), this is a requirement.

Ongoing Maintenance
Regular Patching & Monitoring.
With on-premise solutions, your IT department is responsible for all of the day-to-day tasks necessary to keep your servers, storage, software, backup systems and network up-and-running optimally 24–7–365. This includes security patches, system upgrades and performing regular backups.
Offload the Headaches.
You can offload the burden and complexity by relying upon a third-party service provider and their SLAs (usually exceeding 99.9%) to optimize email uptime. In order to meet their stringent SLAs, cloud-based solution providers have invested millions of dollars into their architectures, built-in redundancy and fail-over systems.

Customer Service

It’s All YOU.
When your email goes down, your IT department has to scramble to get it up-and-running ASAP, because it is mission critical. And if you do not have a disaster recovery or email continuity solution in place, it can often take hours to troubleshoot. Consequently, IT departments need to provide regular updates to users while at the same time investigating the root cause of outages.

One Culprit to Blame.

Since you have effectively shifted your IT burden and headaches to a vendor, they are on the hook to serve you. Most reputable vendors offer customers expert support, provided by a dedicated Client Services team, at no additional cost. So look for vendors that can do everything—including the worrying—for you.

Upgrades

Disruptive and Unpredictable.
Your in-house staff must manage the on-going maintenance of email system to ensure email is always up and running.  With conventional software, it takes considerable planning and effort to upgrade to newer versions and manage upgrades.

Transparent, Continuous Upgrades. 
When you turn to a hosted solution, you immediately have a fully equipped, top-of-the-line system that is continually updated and maintained. This saves you thousands of dollars in server hardware, software, upgrades and the expertise to run it all.

Scalability

The Costs are Already Invested.
When your company grows, your infrastructure must grow even faster. Scaling an in-house Exchange environment requires planning and additional budget (to purchase more servers or software). The problem is worse if your company is downsizing, since you have already invested in and configured your system for a specified number of users.

Easy to Add and Subtract Users.
Since hosting providers have extensive hardware and software resources, they can scale smoothly and easily. Cloud hosting, in particular, is especially designed for scalability, since you only use and pay for the infrastructure resources you need.

Antivirus & Anti-Spam Protection

Another Layer of Complexity.
An increasingly important part of administering a messaging environment is providing a continuously updated advanced spam and virus solution to keep your email secure.

Protection Already Built-in.
Most cloud-based email providers offer a basic level of spam and virus protection (many offer advanced spam and virus protection for an additional fee), which eliminates 99 percent of unwanted email before it ever reaches your inbox. A good solution also screens for and quarantines any viruses, which can bring your email system to a screeching halt.

Disaster Recovery

How Long Can You Go without Email?
Research suggests that most small and mid-sized enterprises experience more than 40 total hours of unplanned email downtime each year. And some estimates suggest that upwards of 40 percent of these outages last more than 24 hours.

Access Your Email Anytime, Anywhere.
Cloud-based providers are usually better equipped to recover from an email outage. In fact, most cloud-based solutions guarantee their uptime and have built-in continuity systems to ensure your data does not go down, even if one of their data centers is impacted by network or hardware malfunctions.

Administrative Controls

Technical Expertise Required.
With most on-premise environments, in-depth technical knowledge is required to setup new users and perform tasks like email routing and managing mailbox storage limits.


Web-based Control.
Cloud-based providers allow you to manage your entire hosted email environment, including permissions, storage, mailbox creation and more, with just a few clicks, using an intuitive control panel.