Help with Exchange 2007 and Office 365

Hi Experts,

I have a complicated scenario that I will need to solve and I hope experts would be able to help me out.

Our client has on-premises Exchange 2007 installed on Windows server 2008 and they have six additional SMTP domain (accepted domains) in their Exchange environment. They have recently bought a new small business - let's call it as domain.com.au and existing users from the new company, they have been using their emails with hosted Exchange provider. Now they want to add one more SMTP domain (domain.com.au) to on-premises Exchange server and migrate their email domain to on-premises Exchange 2007 from hosted provider.

But I am concerned that this will cost them more as the current server is old and it needs hardware upgrade. So I suggested them that why not migrate the new company domain.com.au from hosted email to office 365? and then once migration is finished we migrate on-premises Exchange 2007 (with six accepted domains) to office 365?

I am thinking that once they migrate domain.com.au from their hosted email to office 365, they can add remaining six remaining domains to office 365.

Am I going with right direction? How would you do if you had this kind of case?
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bas2754Commented:
"But I am concerned this will cost them more...."

This is a subjective question.  The quick answer to your first question about hosting multiple domains on Office 365 is certainly not a problem (see here: https://support.office.com/en-us/article/Can-I-add-custom-subdomains-or-multiple-domains-to-Office-365-5481401f-7771-490e-b728-b3a81305a32e)

The question is, how many users are we talking about?  How long would they plan to keep the server?  Are there any limitations imposed on Office 365 that would preclude them from using it?

For most smaller organizations it is more economical to host their email with Office 365 accounts than implement their own server.  You should do a cost analysis for the client and show what the cost of the new server(s) would be along with the proper Windows and Exchange licensing.  Break this out over maybe 36, 48, and 60 months.  Now compare that monthly cost with the charges for hosting with Office 365?  I find in many instances they are every similar in price.

Bottom line is I would offer the client both choices and show the associated costs and then let the client determine how he or she wishes to move forward.  This way you can "guide" the client into a solution, but not make them feel as if you are dogmatic about the process.

One thing I will say about the hosted Office 365 is that when there are problems, it can be sometimes difficult to get support to fix them.  With an on premise server, the client has full control over the system which is something they will give up if it is hosted with Office 365.

Hope that helps a bit.
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