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Hosted Exchange vs In-house Email Server

10 mins read
written by
Dhoof Mohamed

Have you ever wondered which is better: Hosted Exchange or an In-house Email Server? Local companies regularly ask us whether they should use a hosted email service or purchase their own email server. The answer depends on the number of employees you have and your preference for bringing IT in-house.

Owning an email server includes some costs that you should consider before making the purchase. Here are the four biggest ones:

  1. Having your own email server requires regular investments in the hardware -- every 3-5 years you need to upgrade the hardware. You also need to ensure you have reliable power and internet plus a closet where you can cool the server.
  2. You need to ensure your email server is working at all times. Unless you have this expertise in-house, you need an IT Service Provider to maintain and manage it.
  3. Email servers require anti-virus and anti-spam software that are kept up to date.
  4. A server backup solution is critical to prevent the loss of emails if the server crashes.

In conclusion, it is typically much more cost effective to use a hosted email solution if you have fewer than 25 employees. With more than 25 employees, it can be more cost effective to purchase an email server. However, it depends on whether you want to invest the capital and energy in owning and managing it.

About Skyriver IT
Skyriver IT is a San Diego IT Service Provider that helps companies make the right IT decisions for them. We help companies consider all the hidden costs and effort involved in owning an email server as well as other technology investments.

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