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Hosted vs. in-house Exchange and other email options

Posted on 3/24/15 at 2:41 pm
Posted by CajunAlum Tiger Fan
The Great State of Louisiana
Member since Jan 2008
7870 posts
Posted on 3/24/15 at 2:41 pm
I'm working with a company that has 500 employees currently using a hosted IMAP email server @ $5/user/month and we are looking for alternatives to lower the costs.

What other options should we look into? How low can we reasonably expect this number to be? Is there a general point where it be more cost-effective to bring the server in-house? What are the trade-offs and how should this decision be approached?

Any guidance appreciated.



Posted by GrammarKnotsi
Member since Feb 2013
9315 posts
Posted on 3/24/15 at 2:53 pm to
quote:

Hosted vs. in-house Exchange and other email options



Nice try Hillary
Posted by ell_13
Member since Apr 2013
84943 posts
Posted on 3/24/15 at 3:04 pm to
quote:

500 employees
quote:

$5/user/month
Jesus man. Get a damn server.


You'll need a primary and backup mail relay server. I suggest unix.
This post was edited on 3/24/15 at 3:06 pm
Posted by Scream4LSU
Member since Sep 2007
986 posts
Posted on 3/24/15 at 3:20 pm to
I highly recommend that you NOT bring email in-house at 500 employees. The spam protection alone will eat your lunch. You will need an enterprise level spam package or appliance and that alone will put you way over your current spend.

Total cost of ownership (TCO) for in-house email is completely underestimated. Cloud services will hands down deliver better value.

Expenses:

Hardware
Spam
Bandwidth directly related to email
Licenses
Labor to manage
Power
This post was edited on 3/24/15 at 3:29 pm
Posted by ell_13
Member since Apr 2013
84943 posts
Posted on 3/24/15 at 3:31 pm to
quote:

Hardware

Bandwidth directly related to email

Labor to manage
Power
He could already have these. It's a part of the process his team needs to go through.
Posted by CajunAlum Tiger Fan
The Great State of Louisiana
Member since Jan 2008
7870 posts
Posted on 3/24/15 at 3:31 pm to
My first two actual responses:

quote:

Jesus man. Get a damn server.


quote:

I highly recommend NOT bring email in-house at 500 employees.




That's what I've found trying to find an answer online - adamant responses in both directions. What are the decision points to consider?
Posted by Scream4LSU
Member since Sep 2007
986 posts
Posted on 3/24/15 at 3:37 pm to
Sorry, I listed them on edit. Gotta look at TCO.

Office 365 has very little drawbacks in my opinion if you are shopping around. Only concern I have is data retention and there are ways around that.
Posted by Scream4LSU
Member since Sep 2007
986 posts
Posted on 3/24/15 at 3:41 pm to
Well you left about 25% of the total cost and yeah he may have that you are right.
Posted by CajunAlum Tiger Fan
The Great State of Louisiana
Member since Jan 2008
7870 posts
Posted on 3/24/15 at 3:52 pm to
quote:

Office 365 has very little drawbacks in my opinion if you are shopping around. Only concern I have is data retention and there are ways around that.



Any idea on per user costs for Office 365?

Is there a resource available where I can make an reasonable estimation of the indirect or "hidden" costs of managing a server in-house?

If we keep using a hosted service, are there other options with a lower per user/monthly fee?

I'll add that it's also a high turnover (100%) business which adds another level of complexity to managing in-house.
Posted by CubsFanBudMan
Member since Jul 2008
5060 posts
Posted on 3/24/15 at 4:12 pm to
Google is $5 per month per user, or $50 per year per user. The company I work for switched from in-house Exchange to using Google. We have over 2,000 employees. I'm not in the IT department, so can't tell you what factors went into their decision to switch. Being that most of the employees are located across the country, I would bet that bandwith was a major factor.
Posted by Hawkeye95
Member since Dec 2013
20293 posts
Posted on 3/24/15 at 4:23 pm to
quote:

Any idea on per user costs for Office 365?


I believe enterprise licensing is $500/per user/3 years.

But that includes all of office. Really expensive though.
This post was edited on 3/24/15 at 4:30 pm
Posted by CajunAlum Tiger Fan
The Great State of Louisiana
Member since Jan 2008
7870 posts
Posted on 3/24/15 at 4:32 pm to
Thanks to all,

Anyone have experience with Rackspace? It looks like they can host with similar features for $2/user/month and they have a hybrid plan with hosted exchange for designated users @ $10/month.
Posted by LSU5508
New Orleans
Member since Nov 2007
3613 posts
Posted on 3/24/15 at 4:46 pm to
An Office 365 Enterprise plan for mail only is $8, If you want The office suite included it jumps to $20/month. Expensive if you are good on Office licensing but a pretty good deal if your on the verge of updating.
Posted by Dijkstra
Michael J. Fox's location in time.
Member since Sep 2007
8738 posts
Posted on 3/24/15 at 5:26 pm to
quote:

Anyone have experience with Rackspace? It looks like they can host with similar features for $2/user/month and they have a hybrid plan with hosted exchange for designated users @ $10/month.


I use Rackspace, and I absolutely love it. It's insanely dependable, customer support is some of the best I've ever had, and they're not that expensive at all.
Posted by CajunAlum Tiger Fan
The Great State of Louisiana
Member since Jan 2008
7870 posts
Posted on 3/24/15 at 9:07 pm to
quote:

I use Rackspace, and I absolutely love it. It's insanely dependable, customer support is some of the best I've ever had, and they're not that expensive at all.


Thanks, It looks like a viable option.
Posted by jdd48
Baton Rouge
Member since Jan 2012
22053 posts
Posted on 3/24/15 at 10:12 pm to
I don't think there's a one size fits all answer to this. However, my feeling is if the company is large enough to have a dedicated IT department with enough resources to administer the server, then email should almost always be brought in house.
Posted by ColdDuck
BR via da Parish
Member since Sep 2006
2758 posts
Posted on 3/25/15 at 7:17 am to
If you just do the Hosted Exchange plan and not full blown 365, it is only $4 per user per month with 50gb per box. I have about 15 different companies on it.

Reply to me and I will give you my Microsoft partner number so I can get some kick backs.
Posted by Scream4LSU
Member since Sep 2007
986 posts
Posted on 3/25/15 at 12:12 pm to
quote:

If you just do the Hosted Exchange plan and not full blown 365, it is only $4 per user per month with 50gb per box. I have about 15 different companies on it.


Correct, you can get it down to $4 Exchange only.They have deals running all the time. That partner route will be your best bet with Coldduck to try and get maybe more space per user or something.
Posted by LSU 318 LSU
El Cerrito Place
Member since Jan 2011
4278 posts
Posted on 3/25/15 at 12:50 pm to
I would NEVER recommend hosted email with 100+ employees
Posted by LordSnow
Your Mom's House
Member since May 2011
5498 posts
Posted on 3/25/15 at 1:11 pm to
we just moved from O365 to gmail and administrating it and the use has been great. A few complainers among the 750 people we have accessibility, retention, etc are all great
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