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Hosted Exchange vs on-prem Exchange Server

Hi,

 I have SBS2011/Exchange 2010 on a physical server.
 I am considering Hosted Exchange service and like to hear about Pros and Cons from those who migrated to it.
 
 1. I know mailbox size limitation is 50GB in hosted exchange service. Email archive service is available, but cost extra. On-prem exchange, I know I can let mailbox size grow beyond 50GB.
 2. How does "Setting up Forwarding account to an external email address" work in hosted exchange service? In On-prem exchange, I can create a separate contact person so that incoming email to certain mailbox is forwarded to external email address at no additional cost.
 3. I know that perhaps biggest benefit of hosted exchange is that you don't have to worry about exchange database corruption/repair situation which is overwhelming and time-consuming. I am curious if you don't run into any mailbox or exchange database corruption or problems in hosted exchange environment.
 4. In on-prem exchange, I am free to add or delete user mailbox anytime and anywhere without having to pay for them.
 5. Finally if I decide to keep on-prem exchange service, is there a benefit to upgrade to newer version like Exchange 2016 rather than using Exchagne 2010?
 

 Thanks for your insight in advance.
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Dr. Klahn

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@Dr. Klahn
Are you against hosted exchange service due to "because of the vast amount of spam emanating from hosting IP blocks such as Microsoft Azure, Google and Amazon rent-a-servers"?
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@Tom
(1) Does "Setting up Forwarding account to an external email address"  constitute another mailbox; therefore, cost extra money?
(2) "you're limited with migration options" --> What do you mean by that?
(3) "search is working slower" -->  In hosted exchange setting, you will maintain local copy in OST format. I wonder why search would be slower since the data file (OST) is in the C drive.
(4) "but you must maintain backup which is very expensive and time consuming." -->All you have to do is to perform Window Server Backup on to external USB drive or NAS system. Why is it expensive? What do you mean by time consuming with respect to backup?
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@PGM
(1) "China and Germany have issues with blocking hosted Exchange services" --> Chinese can't even run MS One Drive. They are hostile to Bill Gates or Bill Gates is refusing to meet the demands from Chinese government.

(2) "blacklists are common with hosted Exchange" --> This is a big problem. I am glad that I am learning this.

(3) "There are still a lot of things that don't work as well as they should on a hosted Exchange plan,but you get what you pay for." --> can you give me an example?
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@Tom
"4: I had bad experience with that that's why I'm using backup to tape for full backup, not NAS, NAS only for incremental and I'm using software with granular recovery option. In Windows Backup i think you must recover whole storage then copy over email manually, I believe there is no straight-forward option to recover single email from Windows Backup" - I hear you. I agree that Restoring a mailbox from Windows Server Backup is a monumental task (Restore/Dirty shutdown to Clean shutdown state, Mount to Recovery Database, making sure to have enough space on the hard drive .. etc). I run, along with Windows Server Backup, Symantec BackupExec that allows you to restore a single email item in a user mailbox. It is nice, but backup takes hours.
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@Davis McCarn
"if the entire enterprise disappears entirely, you're scr*wed and have no legal right" --> It is good to know.
"Twice, in 2017, Microsoft's own Outlook.com servers have decided they could not trust each other with the end result being that emails using that service fell into a black hole" --> This is not good.

I guess there is no perfect situation after all. You just have to weight pros and cons and make the decision.
Yes, but as long as incremental backup is talking under 10 hours so can be done over night that's fine (for me)

I did recovery task few times and recovery is taking a minutes :)
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@Tom
" incremental backup is talking under 10 hour" --> I am just curious ... are you using USB 3.0 external USB Drive? What is the size of the backup?
I have NAS connected via Network
My incremental backup is taking approximately 5 hours - 240GB with verify
Is backuping DC, Exchange, SQL and 5 virtual machines
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@Tom
" limited with migration options If you'll decide go back to on premises" --> If you were using hosted exchange service and like to go back to on-prem, then can't you create PST out of OST on each computer and import that into on-prem exchange mailbox account either thru Outlook client or Exchange shell command?
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How does backup/restore work on hosted exchange service?
Is that an extra cost to have exchange server backup? What is the process of restoring mailbox information?
In on-prem situation, you can go back to virtually any previous date and restore person's mailbox or a specific folder in the mailbox and does not cost extra money.
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@Tom
 Thank you for the information and I appreciate it.