Upgrade path and price from exchange 2003 and office 2007

Posted on 2014-02-17
Last Modified: 2014-02-18
I need your advice on choosing what upgrade option is better for this environment.

exchange 2003 std
GFI MailEssential
mailbox 80
office 2007

Cloud based office 365 or on-premise exchange server upgrade to 2013 and office 2013?

-We do regular mass emailing to about 3000 clients, it usually takes about 30-60minutes to send them all. If Office 365 is the choice, do I have this mass emailing feature?

-What about spam filtering? Is there administrative console provided by office 365? Is it flexible to adjust to our business specifics?

As of doing some pricing, I don't see benefit of migrating to office 365... after 3 years when I upgrade system  to on-premise setup:

Office 365 Small Business  (Outlook only, I guess):
$5/month X 80 X 12 X 3yr=$15200 after 3 years.

Office 365 Small Business Premium(Outlook+desktop office):
$15/month x 80 x12 x3yr=$45600 after 3 years

Comparing to On-premise exchange server 2013 +office 2013:
$700(Exchange server software) + $70(user cal) x 80= $6300
$200(office 2013 home and business) X 50 = $10000
Total: $16300
Question by:crcsupport
LVL 79

Assisted Solution

by:David Johnson, CD, MVP
David Johnson, CD, MVP earned 125 total points
ID: 39866311
Don't forget to factor in the price of the server, server software, backup solution, backup storage costs, maintenance costs.

Assisted Solution

sherenian earned 125 total points
ID: 39866319
Doing it on-premise will come out cheaper no matter how you look at it.  If you have to hire a guy to run/manage it then ya, obviously the Office 365 option is cheaper, but you're look at 5 years.  So cost compare 5 years of Office 365 (and as far as I know you can't do it for $5 per person if you're over 20 or 25 users) so 80 * 15 * 60 = $72,000  

You can buy an awesome server, backup software, cloud backup, and maintenance, electricity, whatever the heck you want to throw in there, and still come out way less than $72k
LVL 39

Assisted Solution

by:Vasil Michev (MVP)
Vasil Michev (MVP) earned 125 total points
ID: 39866578
For 80 mailboxes I don't think there is any way that an on-prem solution will be cheaper. As David noted, you will need to factor at least the cost of the hardware and building resilient on-prem solution will inflate that price a lot. Don't forget that with Exchange Online you get financially backed up SLAs.

That being said, the Online service is not without it's problems. Support is included in the price of the service, but regular support is a joke. You can expect updates to be pushed without proper documentation or even notifications in some cases. And there will be the occasional SIE. Overall however, you will save yourself a lot of trouble and you will always be using 'the latest and greatest'.

As per your other questions:

You can send bulk mail, the current limits allow up to 10k per mailbox per 24h rolling period:

Spam/mailware is included in the price of the service and it's enterprise class. There is lot's of info about it on technet, you can start for example here:
Optimizing Cloud Backup for Low Bandwidth

With cloud storage prices going down a growing number of SMBs start to use it for backup storage. Unfortunately, business data volume rarely fits the average Internet speed. This article provides an overview of main Internet speed challenges and reveals backup best practices.

LVL 74

Accepted Solution

Jeffrey Kane - TechSoEasy earned 125 total points
ID: 39866724
You cannot use the Small Business Plans of Office 365 as those only allow a MAXIMUM of 25 users.

But that aside, your calculations for on-premise are missing a bunch of costs such as SPAM filtering, Backup, Server 2012 License, and most importantly HARDWARE costs.  Unless you have a large Hyper-V host sitting there with tons of excess capacity, you'll need a server that can handle Exchange 2013 for 80 users.

Also, if you ONLY want to use Exchange Online, you can do it for just $4.00/user/month with Exchange Online Plan 1.

There is a decent cost comparison worksheet available here:

Author Comment

ID: 39867560
5 yr Exchange on premise:
6000(server hardware)+a(disk replacement)+1000(win2012 std)+70x80+700(exchange server)+700(GFI mail essential)x5=16800+a

5 yr exchange online:

I think using exchange online makes sense.
If you use exchange online, do you have any problem managing it such as modifying antispam rule suitable to your business. For example, I use regular expression a lot.

Author Comment

ID: 39867571
It supports regular expression.
LVL 39

Expert Comment

by:Vasil Michev (MVP)
ID: 39867595
In your scenario above, are you willing to accept the downtime that any failing component will cause? When you start adding components for LB/HA, things get real ugly real fast for any small shop. While in EO, you get this by default, and with financially backed SLA. Which of course is not to say that issues don't happen.

You have a lot of customization options with EOP, including use of regular expressions. Just review the article I linked above.

Author Comment

ID: 39867707
I agree. I think I have to look more into Exchange Online and test.

Thank you all.

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