On-premises Exchange vs Office 365 – Which One is Best?

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Exchange Server remains at the top list always in the market. It has continually introduced new functionalities aimed at providing customers with the best services. As cloud providers have begun to win the market, Exchange Server continually faces strong market share opposition from Office 365. If you’re in confusion which platform is stronger and appropriate for your organization, then here we are showing you the difference between On-premises Exchange vs Office 365 in detail. This complete guide explains about the platforms with their upsides and downsides.

First of all, you should know what your organization needs to check whether which one is better suits your needs.

Requirements of Organization:

  • The overall cost of maintaining the assets at the site.
  • kind of business that your organization will run.
  • Overall Hardware and Software resources expense.
  • Kind of perks that will Exchange Server or Online offer on-site.
  • How long do you need to run an application?

Now, let’s start the difference between On-Premises Exchange vs Office 365 in detail.

Office 365 vs Exchange On-premise:  Compare Them

Check Office 365:

Office 365 is Microsoft’s paid subscription cloud platform. There are many other packages you can upgrade according to your requirements. With the exception of Exchange Server, Office 365 can be used in various plans such as Office 365 House, Office 365 Personnel, and Office 365 Education.

Upside of Office 365:

  • Always receive the upgraded version without any need to keep updating all the time.
  • No investments needed for any updates.
  • Through this, users find more other features such as hosting Exchange Server, SharePoint and Skype for Business Server, etc
  • In the presence of a network connection, Office 365 services are accessible everywhere.
  • No investments in the initial phase of hardware installation.
  • Office 365 is not as expensive as there is no maintenance required.

Downsides of Office 365:

  • A problem with Office 365 is uploading mailboxes.
  • As Microsoft is the most reliable information storage client, there is still some likelihood of unauthorized access and worries with data integrity, so large companies are hesitating with Office 365.
  • Need of Third Party assistance during data migration.
  • Microsoft has data centers around the world at various locations and users are uninformed of this. Users are thus unaware of where their data is located.

Check On-Premises Exchange:

On-premises Exchange, as the name suggests, holds the Exchange Server(s) at its own premises. This can be made use of by buying a license for client access. You must have enough hardware with Exchange installed for this.

Upsides of On-Premises Exchange:

  • Exchange Data has complete control over you and you know where it is.
  • It provides complete control over the Exchange, the user may customize the parameters or configurations, and the mailboxes and other items can be easily handled as needed.
  • Information safety is a serious component behind this entire scenario, with On-premises Exchange providing users with assurance of data security as data is on their own spot.
  • Notifications to the server, reboot, backup and shutdown can be governed and conducted as conveniently as possible.
  • Users can change the safety feature according to the specification.

Downsides of On-Premises Exchange:

  • Upgradation of hardware and software needs more expense.
  • The management of the DNS Services, Firewalls, and Active Directory for On-premises Exchange Server requires technical skills.
  • A big-budget is needed at the early phase of setup.
  • The business having such applications must be completely responsible for any failure and catastrophe to data at Exchange.
  • An on-site exchange administrator will be essential for keeping the mailboxes, preventing identity theft, and retrieving the compromised and removed mailboxes.


Through the above comparison between On-premises Exchange vs Office 365, it becomes a little bit harder to find which is the best platform. As there are different requirements of a business to run, so it’s up to you whichever to find the best. Office 365 vs Exchange server explained with their upsides and downsides in detail here. Go and opt for the best platform as per your needs. Although Migration from on-premises Exchange to Office 365 is a critical procedure, therefore, needs a professional EDB to PST Converter or Exchange to Office 365 Migration Tool. I hope you liked this article and use the most appropriate application.

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