It has been widely agreed upon that email is the most important tool for business communication. A King Research survey confirms this, as 96% of their survey of mid-market IT professionals, that deal with their company’s messaging systems, believe that email is important or extremely important to a company. When it is not available, this loss of communication has a significant impact on business operations. Osterman Research shows that one in five businesses believe that a single email outage can cause up to $500,000 in revenue loss. This is confirmed by the claim from Eagle Rock Alliance that a staggering 40% of companies would go out of business if they lost access to their data for 24 hours or more.
Given these statistics, it is not surprising when IT professionals, according to the 2006 Skillsoft survey, report daily stress from user complaints, managers and deadlines. IT professionals are a luxury that smaller businesses do not and usually can not afford to have. Small and medium sized businesses, those with 500 employees or less, are lucky to have even a small in-house IT team. These individuals have many responsibilities such as keep the email up and running, Web and network administration, joining security, databases, and much much more. Managing Microsoft Exchange takes up an IT manager’s time that could better be used in running the business’s core applications and having a more strategic role in IT planning.
For companies that have a strained IT team, or none at all, Microsoft Exchange can be a very smart, cost-efficient option. Gartner thinks that the market for hosted email relative to email seats will grow from its current 1% up to 20% by 2012, which represents 40 million hosted mailboxes within the next couple years.
While the hosted email market is growing fast, there are still some misconceptions that are present that stop companies from considering it as a viable option for an in-house solution. This article will talk about these misconceptions and show why hosted Exchange is the best option for smaller businesses.
Misconception #1: Downtime is less of a risk while using an in-house Exchange solution
TRUTH: Most in-house solutions do not have the resources or the budget to obtain and manage the same precautions as hosted solutions. These in-house solutions are usually in very basic environments with no backup systems, little or no redundancy to the internet and no disaster recovery solution in place. Since these businesses are small and do not have the means, they do not even try for these features. According to Gartner, this results in the average business running an in-house messaging solution to experience 40 hours of unexpected outages a year, on top of the 2 hours of planned outages for maintenance a month. The majority of email outages are caused by unplanned technological failures, Osterman Research states and according to www.DisasterResource.com, 29% of outages last for 4 to 24 hours. When looking at these statistics and comparing them to the above facts, in-house businesses are looking at a huge amount of risk.
The best hosted Exchange providers, however, give their customers their own world-class Exchange infrastructures and provide back up systems, redundancy and disaster recovery. These precautions protect small businesses with no IT team from unplanned downtime which can, as it was explained above, negatively impact the company’s revenue greatly, negatively affect the company’s relationships with its customers and partners, and harm its reputation. A service-level agreement is now in effect where 99.9% up time as the standard for hosted Exchange providers.
Misconception #2: In-house Exchange servers are more secure than hosted solutions
TRUTH: If the business using an in-house solution does not have an in-house IT professional to oversee the security of the network, then the in-house Exchange solutions have less physical security, digital security and backup security than a hosted one. Every month Microsoft releases around 25 patches and updates a month, or more. With all of these patches, it means that someone has to be around to download them, install them, and make sure that they are running smoothly to fix the identified security vulnerabilities. Along with the needed expertise to ensure that these updates are done properly, the server usually needs downtime for the installations. This in itself is a problem for businesses using an in-house solution with no backup plan.
Another issue is n preventing security breaches from email data that falls into the wrong hands. Many people believe that the biggest problem lies in outside people procuring data, but in reality many security breaches occur from within an organization. In-house solutions more easily enable curious employees to read confidential emails of their superiors, something that would not be able to happen with a hosted solution.
Misconception #3: In-house solutions offer more control than hosted solutions
TRUTH: With hosted Exchange today, non-technical administrators can control distribution lists and mobile device connections, add and remove users, keep up with email compliance regulations, and have control over any other functionality of Microsoft Exchange, all in real-time.
Exchange Servers are, in general, very complex with proper maintenance requiring at least one full-time IT professional. This is very expensive, with their services costing around six figures in an annual salary and including their benefits. With small companies, having a full-time IT professional is not economically feasible; this is where a hosted solution can help. As companies get larger, more and more IT resources and staff are needed to handle outages, vacations and off-hour support issues.
Misconception #4: In-house solutions offer more functionality than hosted solutions
TRUTH: Hosted Exchange does not offer the complex and expensive third party customization that is usually implemented for large companies by consultants or in-house developers. The reality is, however, that small businesses do not need or even want any more functionality than the Exchange box offers. For businesses that do want more functionality, some hosted Exchange solutions do offer an easy integration with an wide range of Microsoft products such as mobility, document management, encryption, anti-spam/anti-virus, backup and recovery, archiving, and others.
An example of this is the Office Communications Server (OCS) which allows office workers to communicate with each other using a whole variety of methods, like instant messaging, video chat and more, in real time. It also unifies communication and is easy to use as it is fully integrated into Microsoft Exchange and Outlook in a secure environment. These features boost employee collaboration and raise productivity, as a result.
Installing and configuring OCS is very complex, and integrating it is long and nerve-wracking for anyone who does not have the technical expertise to do it right. Hosted Exchange providers can enable non-technical administrators to do all this with just a click from a mouse.
Misconception #5: Hosted models are too expensive
TRUTH: Hosted Exchange models today cost about $12 per month per user with start-up fees of about the same amount. An in-house Exchange can cost thousands to hundreds of thousands depending on the type of deployment, and the number of users. As an example, look at Exchange 2010, in addition to five new server roles plus x64-bit hardware the license fees would cost around $60 per user. The Exchange would also need constant tweaking and changes to the various settings. On top of that, there are the system reboots and the corresponding services that need to be started and restarted. As mentioned in misconception #3, this requires IT professionals and would drive up salary costs to more than the monthly cost of a monthly subscription to a hosted solution.
Despite all of the misconceptions out there, the reality today is that hosted Exchange solutions give smaller businesses the same infrastructure, support and functionality as the larger enterprises out there at a price that they can afford. Since no company can keep running without a reliable email, hosted Exchange is the best option in keeping email up and running for businesses that do not have the resources or the budget needed to have a complicated in-house Exchange solution.




