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First LastFlag for United States of America

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In house Exchange 2010 or Hosted Email solution?

I've been asked to investigate the pros and cons of an exchange 2010 upgrade.  We're currently running exchange 2003 in house for around 100 users with a surf cotnrol email filter on the front end along with a BES for our Blackberry users.  We have an experienced IT staff who could perform the upgrade and manage the email server but at the same time the industry seems to be trending hard towards hosted solutions for communications.

I'm looking for feedback from others in the same situation.  Is it still cost effective to host an exchange server in house?  Does it make more sense for a SMB to go with a hosted email soluition?  Let me know your thoughts and please let me know if there is any further info I could provide that would help make a decision.
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James H
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Pros: Less overhead and management of Exchange and BES
         No Licensing costs
         Offsite backup
         24x7 support with Email host

Cons: Lack of customization - control
          Cost - very expensive, about $10.95 / box per month
          Slow transition to transfer data to their servers

I would prefer in house over hosted as I have control over the server and how you want to tweak it.
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jeffster1
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Your internet connectivity reliability and speed should also be a factor. What happens when you lose connectivity? What happens when 20 people open outlook and download all their emails everymorning with attatchments etc.
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Thanks all, great info