What Can Hosted Exchange Save You?

Implementing a reliable, worry-free email platform is often the sole motivation for many organizations to switch from onsite Exchange maintenance to Hosted Exchange, but there are a host of other benefits that come along with the choice, here are a few:

IT labor. According to Microsoft, properly running Exchange onsite involves approximately 9,790 hours per year or about six full-time employees. For startups and growing businesses, that can equate to more employees than their entire IT team, even the entire company. And those businesses investing the 9,790 hours annually may be doing so to the detriment of supporting other applications or starting new IT projects.

Choosing to put Exchange in the cloud gives you those 9,790 hours, or however many hours you’re devoting to Exchange, back and lets you focus on the revenue generating projects that move the business forward.

Downtime risk. Nearly 59 percent of email outages are caused by infrastructure or hardware failures. Many of those malfunctions are a direct result of misconfigured hardware. Other top causes of email downtime are database corruption, connectivity issues and natural disasters. Enterprise application failure can cost more than $160,000 per hour in lost productivity and missed opportunities.

Moving to a Hosted Exchange solution puts massive server resources and a team of messaging experts at your disposal to monitor your system for potential risks, help troubleshoot issues around the clock and spring into action to fix issues if they arise. Saving your organization the cost of being down for an extended period, missing important patches or troubleshooting server glitches make Hosted Exchange an attractive alternative to juggling it all onsite.

Per-user cost. Onsite Exchange isn’t just a server; it’s an ecosystem of integrated servers. The ecosystem starts with the server delivering the core application, plus additional capacity to run spam and virus protection, store email data, enable mobile access and archive email. The cost of running Exchange for a 15-mailbox organization can run up to $8,500 per user for the first year.

Hosted Exchange at Rackspace is a predictable, annual fee of less than $150 per user, per year. Hosted Exchange also decreases the need for onsite servers to run Exchange and deliver supporting Exchange services.

As important as Exchange can be to a growing business’ overall communication plan, layering the initial infrastructure investments and ongoing maintenance can quickly burn through the average IT budget. Check out this video to find out the top 10 reasons Hosted Exchange trumps onsite Exchange management.

Lizetta Staplefoote is a Rackspace Marketing Copywriter with a decade of experience writing about small business challenges for healthcare, real estate, and technology. Her passion is researching and writing about the impact of cloud computing. When she's not wordsmithing, she enjoys hanging out with her sons, exploring the Blue Ridge Mountains, and feeding her music addiction.


  1. You are right and wrong your numbers are true, the way you put them with words not so true. a small shop would be better off doing what you say (maybe not yahoo, Gmail can work for them in the short run). but any one with 30 or more should look at other things like how well the company is doing this expense is every year forever, (that adds Up). If your company is doing well then looking into this is a good thing. But it takes one person a few hours a year to run a exchange server. We have done it for many years. But the amount of six is far out side the box smile.

  2. “9,790 hours per year or about six full-time employees.” Scare monger much…

    I don’t disagree with the fact that “hosted” Exchange is the much viable and lowest TCO option for the average SBE (usually around 300 users), but to say you’ll save paying 6 people to do the same job, when you haven’t quoted the number of users (certainly in the thousands) that the original projection from Microsoft represents is misleading.


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