Intermedia: The Case For Hosted Exchange

Intermedia commissioned a new white paper from industry research firm Osterman Research in order to provide additional tools to the marketplace regarding hosted Exchange. The below is part of a series of excerpts from the white paper, “The Case for Hosted Exchange” – available on Intermedia’s web site.

Overview

Email is absolutely critical to those who use it. For example:

  • An Osterman Research survey conducted in September 2009 found that 81% of email users regularly check their work-related email from home on weekdays, 78% do on weekends and 60% do so on vacation. The survey also found that despite the growth of alternative communication tools, 45% report that over the past six to twelve months their use of email is increasing.
  • A May 2009 Osterman Research survey found that 97% of email users consider it to be important in doing their work. By contrast, only 86% of users felt this strongly about the telephone, while 45% felt this strongly about instant messaging capabilities.
  • Osterman Research estimates that the worldwide installed base for Microsoft Exchange is 160 million users, making it the leading business-grade messaging system in use in terms of total number of seats.

Clearly, email is absolutely critical to users and the organizations that deploy it, and it is becoming more so over time.

The Bottom Line

Because email and messaging capabilities are so critical, they have in some respects become like a utility: like electricity, for example, email is so critical to the operation of any organization that it no longer provides any substantive competitive differentiation between companies. Like other utilities, then, the goal is to a) ensure that service remains available as close to 100% of the time as possible while b) simultaneously being provided as inexpensively as possible. For many organizations, managing email internally is a thing of the past, just like producing one’s own electricity is a concept of the past.

A growing number of organizations are finding that the way to accomplish this is through the use of Microsoft Exchange as a hosted service, a model in which a remote third party provider manages all backed services for a flat monthly per user fee. The advantages of this approach for organizations that want to realize the benefits of Exchange are that uptime of the Exchange infrastructure can be very high and the cost of managing Exchange can be reduced significantly – typically more than 50% compared to on-premise management, as shown in the following table. Further, the use of a hosted Exchange service allows an in-house IT staff to be deployed to other projects that will provide more value to the organization as a whole.

Monthly, Three-Year Cost of Ownership per Seat for Hosted and On-Premise Microsoft Exchange

DELIVERY MODELS 10 USERS 100 USERS 1,000 USERS
On-premise $389.65 $39.85 $24.13
Hosted $32.46 $14.45 $10.85
$ SAVINGS FROM USED HOSTED EXCHANGE $357.19 $25.40 $13.28
% SAVINGS FROM USING HOSTED EXCAHNGE 92% 64% 55%

You can download white paper “The Case for Hosted Exchange” from our site.

Click here to read the next excerpt from “The Case for Hosted Exchange”.

About The Intermedia Team

Intermedia's Office in the Cloud™ delivers essential IT services for SMBs and the partners who serve them — including hosted Exchange, Hosted PBX, SecuriSync file sync and share, security, mobility and more.