Quick Comparisons Between Hosted Exchange And Office 365

Hosted Exchange vs. Office 365

For many small to medium sized businesses, document and email management is an area they need to focus on when implementing operating systems and processes. There are two basic tools that these businesses usually look at: Hosted Exchange and Office 365. As both services share pretty similar services, deciding which is better for your business can sometimes be challenging. Let’s differentiate between the two and look at their limitations and advantages, so that you can find out what suits your business best.

Understanding Hosted Exchange and Office 365

Hosted Exchange is a type of service that involves you renting an offsite server – in a secure location – to enable onsite office processes. This service allows you to access Microsoft applications and services, such as SharePoint and Outlook. In addition, the web application platform grants you and your users organized access to cloud services, storage software, and document management.

Office 365 is a tool reputed for providing an integrated experience. In this case, the server that is responsible for hosting the service will be irrelevant to the end user. Oftentimes, users gain access to Office Online which is a cloud based application that grants users access to all the known Microsoft programs, including One Drive and email.

Ease of Use

For starters, Office 365 is easy to implement and the process can be completed pretty quickly. That’s why it has always been the preferred option for businesses that are looking to deploy and scale rapidly. This option is also cloud-based and that means that you and your team will be able to access the applications from home, office, or wherever you have access to an Internet connection with a laptop, smartphone, tablet, and more. In addition, Office 365 offers real-time project collaboration and document sharing features.

On the other hand, you will find that it is easier to use Hosted Exchange, especially if you do not have the practice of deleting emails. It provides unlimited mailbox storage and that means you never have to worry about disk space. What’s more, Microsoft Exchange (under the Hosted Exchange range of services) provides you with complete control over the data in your business with all server updates, shutdowns, and backups directed and controlled at the enterprise level.


For Hosted Exchange users, encryption is available and that’s why it is much more suited to organizations that require strong information security and data privacy. Office 365, on the other hand, stores all the data in the cloud, with the location not readily available to users. This may pose a concern to certain industries (e.g. financial services and government industries) that need to store customer data in an extremely safe and compliant manner. In addition, legal archiving capabilities are limited and may also pose challenges to organizations that deal with heavy data archiving protocols.


Oftentimes, a large initial investment is needed to set up Hosted Exchange. But once it is in place, it provides a personalized experience to the business itself and its users. In comparison, Office 365 is a more affordable way to stay on top of new technologies. Your team will get to work with a wide range of apps that are always running the latest versions.  Any additional costs pertaining to the latter will often be related to device/OS renewal, user training, and more.

If your business is using Office 365, ANEXIO provides cloud services for Office 365 migration and support. Contact us today for more information on what we can do for you.