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Office 365 or Rackspace Hosted Exchange

I wanted to reach out to get some advice on what Exchange hosing provider I should choose.  Right now I'm with another provider where the support is absolutely horrendous, I'm looking to make a move and these are the two I narrowed it down too.  Can anyone point me in the right direction with past experiences?
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Vasil Michev (MVP)
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It really depends. Office 365 offers a lot more than just Exchange, and after all its provided by Microsoft. But if you are only interested in Exchange and the price Rackspace can offer you is better, then I guess you can consider them as well.

Support-wise, If you are a small shop you will get the 'regular', vendor-bases support for O365, unless you go with a partner. If you are a big enough to afford/justify Premier contract, Microsoft support will be a lot better and you will also qualify for free onboarding, which will greatly simplify the whole process.
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jerseysam
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where the data is held is very sensitive we are heavily regulated
Yes i have the same issue with my clients.
Take a look at this link:

https://www.microsoft.com/online/legal/v2/?docid=25

You can select your region and see where your local data centres are. Be aware that 365 will try to keep your data region specific, but cannot guarantee that is will stay there forever or be copies other places.

Just a consideration.