Which suits you between On-Premises Exchange Vs Office 365

The Exchange server has always maintained its unique position in the market. It always used to maintain its market share by providing regular updates, new features, and immense trust value among its users. But with time, cloud servers came into existence to give him tough competition. Several users who opt to migrate stay confused about On-Premises Exchange vs Office 365 pros and cons.

If you also want to upgrade your organization and these server solutions confuse you. Then you are at the right place for your answers. Here, I will provide you a detailed analysis of Office 365 vs Exchange On-premise pros and cons. It will help you to make the perfect decision according to your organization’s needs.

Despite directly going into the comparison, I would suggest you analyze your organization’s requirement on the following factors:

  • Expense on managing on-site resource
  • The motive of your organization
  • Desired benefits from On-Premises Exchange or Office 365
  • Hardware & Software requirements and availability
  • For how long you will require this software

Now that you have understood your requirements. Let us begin the comparison.

On-Premises Exchange Vs Office 365- A Comparative Approach

First of all, we will compare them individually and then have a tabular differentiation between them. Let us begin with Office 365.

Office 365

As we know, probably everyone has used the MS Office package to create docs, spreadsheets, ppt, etc. Office 365 is a subscription-based product that is quite similar to the latter. Additionally, it allows the users to work collaboratively as all files can be accessed in real-time via the internet across the globe. You can select different subscription plans from Office 365 Home, Office 365 Personal, and Office 365 Education as per your needs. 

After that, for On-Premises Exchange vs Office 365, let us now learn the pros and cons of Office 365.


  1. Access to various Microsoft tools like Exchange Server, Skype for Business, OneDrive for Business, etc.
  2. Instantaneous access and availability
  3. Also, it provides you free updates
  4. Additionally, you don’t need to update hardware and software at your end. Microsoft will process all the updates themselves.
  5. Reduction in on-site expenses 


  • Microsoft can store your data on its data center in any part of the world. So, you won’t have any info about data storage location.
  • Manual migration of data is complex because of the necessity of third-party assistance.
  • Difficult on-premises integration
  • Moreover, it also lacks proper archiving.
  • Now that you have a perspective of Office 365 and its advantages and disadvantages. Let us now learn about its opponent in On-Premises Exchange vs Office 365.

Exchange Server (On-Premises)

As the above title indicates, Exchange on-premises is a dedicated server that will be functional at your organization’s premises. It is a perfect choice for you if you want to roll out customized updates for your organization. You need to purchase a license for client access and should have proper technical resources for its installation.


  • First, it gives you complete control over your data.
  • Further, you can personally customize the server components like mailboxes, passwords, etc
  • Easy integration of other business applications
  • Furthermore, you can create an archive of emails at the desired location. Also, you can opt for an advanced search as well.
  • Ease of security plans upgrade
  • In addition to the above, third-party assistance is not required to resolve any error.


  1. Organizations are responsible for all the upgrades, which demands massive expenditures.
  2. Also, it requires technical expertise in DNS Services, firewall, etc., for implementing and managing Exchange servers.
  3. Initial setup requires high investment.
  4. Additionally, it requires an on-site Exchange Administrator for carrying out multiple server operations.

Now, you must have understood both the parties. Let us have a tabular differentiation of On-Premises Exchange vs Office 365.

Difference between On-Premise Exchange and Office 365

Exchange Server
Office 365
Less secure and hence more prone to security breaches.
Various security features like Single Sign-on, Multi-factor Authentication, etc., are available.
User Experience
Delayed email delivery and receiving
Better end-user experience and reduced on-site expenses
Chargeable data synchronization
Data can be synchronized and accessed across various devices at no additional cost
High maintenance costs because the user needs to bear all the charges for hardware and software upgrades.
No maintenance or hardware up-gradation required at the user end
Overall Costing
High investment required from installation to upgrades 
Only subscription costs are needed. No need to purchase any additional hardware during installation or upgrades.

Moreover, the above discussion between On-Premises Exchange vs Office 365 must have provided you with an idea of both of them. The final decision of selecting one software from them depends entirely on your requirements and preference. 

Migration is a very critical process that can be pretty exhausting if not processed correctly. Hence, for migration, you will require a professional tool like EDB to PST Converter tool. The software can smoothly convert your Exchange files of EDB format to Office 365 accepted PST format. Also, it allows you to convert EDB into MBOX, PDF, HTML, etc., along with several other unique features.


Lastly, I hope that you have a broader knowledge of the features of On-Premises Exchange vs Office 365. I recommend you use the above-mentioned third-party tool to fulfill all your migration requirements. I hope that you found this blog helpful and valuable for your technical queries.

Thank You


This post is locked
This website uses cookies. By continuing to use this site and/or clicking the "Accept" button you are providing consent Quest Software and its affiliates do NOT sell the Personal Data you provide to us either when you register on our websites or when you do business with us. For more information about our Privacy Policy and our data protection efforts, please visit GDPR-HQ