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GeekahFlag for Canada

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Cloud vs. Virtulization

Hello all,
i am trying to research what would benefit our company best and what would be a better infrasturcture. and see whats the best solution, and figured i would get your feed back regarding this.

We have 5 servers (exchange, DC, backup server which is also an app server, sharepoint, front end portal server)
we have about 5 TBs of data (DAS MD3000 storage)

we need to be able to share the network with our 2 sister locations in other provinces.
no vpn has been set up.

I am looking into either virtualizing our servers or going with Office 365,.
I know there is a free ESX version but not sure which solution would be better.
still in the search..

what is your recommendation?

thanks
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Steven Vona
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Sorry, i wasnt clear about my project.
we have to upgrade our servers anyways. Hardware is old and in bad shape and we want to move to sharepoint 2010 as well as exchange 2010.
since we are upgrading anyways, i am researching a better solution than 5-6 servers as well as a disaster recovery location which is not in place now.

moving forward i am looking into office 365 as well as virtualization for the upgrade and will decide between the 2.

thx
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Thany you for the responses.

One thing that I should've mentioned that our users are mainly Sales people, and so it would be beneficial to have everything on the cloud for super easy access to any drawings or files to show the customers.
Also, each customer would have a site for their project and project updates where they can upload files and we can update files on the fly and show it to the them.
The 5TB is SharePoint ONLY..
Our mail DB is almost 200GBs

For those reasons i am thinking 365, but just wondering if you know of any major limitations (if anyone had used it and is familair with it)..

Definitly not an easy decision but it seems to fit our needs

Why do we still need the 3 servers?? sorry, not sure i am following..
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Thanks, we are going with office 365