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Why Use Exchange Online?

Why Use Exchange Online?

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Why Use Exchange Online?
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Why Use Exchange Online?

Microsoft Office 365 is a great fit for small businesses, it just makes sense. A small business doesn't have the budget for large amounts of storage and infrastructure refreshes. So for a small monthly fee which can go up or down, small business can use Office 365

Recently, when I was drawing some Visio diagrams for a customer proposal, it dawned on me, that Office 365 also make sense for enterprise customers and I will explain why.

One of the big stumbling blocks for enterprise customers is the monthly recurring costs. However, nearly all enterprise customers have Microsoft Enterprise Agreements and I am increasingly surprised at how enterprise customers don't understand the benefits of an Enterprise Agreement. There are many benefits but I am just going to list some relevant to Exchange Online.

  • Microsoft Planning Service Days: Microsoft can help transition to cloud services through an existing EA Agreement
  • Exchange Core Cal: If you have an Exchange Core Cal, this covers you for an on premise Exchange Cal and Exchange Online Cal

The image below shows a brief example diagram of a 2,000 user company in different geographical locations and using on-premise Exchange.

Why Use Exchange Online?

What Does It Cost?

So let’s look at some of the costs associated with maintaining and running this on-premise solution.



WAN Links

Possibly €60k per annum for the 3 sites


How much would the storage cost for 25gb * 2000 users cost? A storage refresh will also need to be considered after 3 years

Power Consumption

Most likely the Exchange server will be running on a virtualisation platform. A rough guess for all 3 sites €50k per annum.

Hardware Vendor Support

On the SANs and virtualisation hosts, roughly €30k over 3 years

Mail Hygiene

Potentially €50k per annum

Hardware Deprecation

New hardware becomes old the minute it is delivered to site

Exchange Admin Staff Cost

Possibly €100k per annum

Exchange 2013

How much would it cost to upgrade this entire organisation to Exchange 2013?

Backup Software

Possibly €10k per annum

Backup Hardware

Hardware refresh after 3 years possibly €100k

Why Use Exchange Online?

So all of the above cost and infrastructure could become like the image below if singles sign on was required. But now Microsoft's Windows Azure Active Directory Syncronicastion tool, syncronises users passwords as well. So for a company with a single forest the complete exchange infrastructure could be replaced by ONE server which would replicate user's identities.

Why Use Exchange Online?

So now it starts to make sense, and enterprise customers are licensed to do this right now and probably don't even realise it!

Contact Ergo today to find out more. Ergo are a Cloud Accelerate Partner and we have the right engineers to help get your company using Exchange Online and manage a seamless transition.

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