Email is a critical communication tool for every business. With email solutions typically being the most widely used business application, companies must decide whether a cloud or on-premises system best suits their needs. This article examines the key differences, pros and cons of each option to help guide your decision making.
What are Cloud-Based Email Systems?
Cloud-based email systems store and manage email services remotely on servers owned by third party providers like Microsoft or Google. Users access email via the internet, through web browsers or email software integrated with the cloud system.
Some key features of popular cloud business email platforms:
- Microsoft Exchange Online – the cloud version of the popular on-premises Exchange Server software. It delivers email, calendar, contacts and other collaboration tools.
- G Suite – Google's cloud email and productivity suite with Gmail at its core, offering easy webmail access from anywhere.
- Zoho Mail – a fast-growing cloud business email platform offering deep integration with other Zoho applications.
- Rackspace Email – a secure email hosting service with admin controls and API integration options.
These email IT solutions provide businesses with scalable, flexible, and cost-effective alternatives to traditional on-premises email systems.
Benefits of Cloud Email
Cloud-based email services offer compelling advantages, including:
Cost Savings
- No server hardware is needed to purchase, install, and maintain on-site.
- Predictable operating expenditure rather than large upfront capital costs.
- Scales up and down easily with your changing business needs.
- Lower IT personnel costs as the provider manages infrastructure for you.
Universal Accessibility
- Email is available from any device, anytime, anywhere, with an internet connection.
- Enhanced workforce mobility and remote working capabilities.
Increased Reliability
- High service uptime by redundant enterprise-grade email platforms.
- Geographically dispersed data centers protect against localized outages.
- Experienced staff manage security, backups, and failover systems.
Easier Administration
- Intuitive web interfaces simplify email administration tasks for IT staff.
- Faster to roll out new mailboxes, aliases, and distribution lists.
- Automated provisioning and de-provisioning of user accounts.
What are On-Premises Email Solutions?
On-premises email systems are installed locally on company’s own servers and networked storage infrastructure housed in offices or data centers. Microsoft Exchange Server is the most popular on-premises platform, but open source options like Zimbra or Postfix are widely used as well.
Administering your own onsite email gives greater control and customization ability. But it also comes with higher costs in most cases.
Benefits of On-Premises Email
While cloud solutions are very capable, maintaining email servers on dedicated infrastructure within your walls has some advantages too:
Greater Control and Customization
- Full administrative access for IT to configure the system to company policies.
- Tailor platforms to specialized integration needs.
- Own your data without third-party access.
Improved Security and Compliance Governance
- Keep stored emails within your network perimeter at all times.
- Meet strict regulatory compliance requirements more easily.
- Configure backups to internal safeguards and procedures.
Performance Reliability
- Less impacted by internet connectivity issues.
- Latency is reduced without traffic traversing the internet.
- Critical capability when internet access is unreliable.
Existing Sunk Investment
- Leverage existing investments already made in onsite infrastructure.
- Integrate with other internally managed platforms and data stores.
- Gradual transition to cloud rather than big bang approach.
Cloud vs On-Premises Email Comparison
Now that we’ve outlined the key characteristics of each solution, let’s compare cloud versus on-premises email across some of the most important evaluation criteria for businesses.
Cost Comparison
For small to midsize businesses without existing infrastructure to leverage, cloud-based email typically delivers a better total cost of ownership evaluation. The monthly subscription fees, which scale up and down as needed, are more predictable than maintaining your own email servers.
However, large enterprises with specialized needs or regulatory constraints often find on-premises solutions more affordable long term. The high upfront investment pays off when spread across many users over 5+ years.
Feature Comparison
Cloud platforms offer most mainstream email features that businesses require. But niche functionality needed by specific industries or complex organizations may only be available with on-premises servers you control.
While custom development is possible on cloud platforms, companies with very unique email requirements are still likely to be better served with internal systems.
Reliability Comparison
The redundancy and failover capabilities of Microsoft, Google and other top cloud email providers offer reliability that few organizations can match. Maintaining 99.9%+ uptime across the globe is extremely expensive to replicate with on-prem configurations.
However, while rare, major cloud outages do occur. And in such cases, companies have no control over recovery timeframes. So organizations where email is literally mission critical may lean toward on-prem or hybrid solutions.
Support and Expertise Comparison
Cloud platforms greatly reduce internal IT overhead to keep email functioning smoothly. The specialized expertise needed to run enterprise-grade email infrastructure is challenging and expensive to develop in-house.
But some customization and advanced configurations still require special skills. Larger companies with robust IT teams typically find it easier complementing them with on-premises systems under their own management.
Security and Compliance Comparison
Cloud providers implement rigorous security controls that exceed the capabilities of most organizations. Multiple backup systems, intelligent threat analysis, and advanced user authentication options help mitigate risk.
Yet no provider can offer perfect security. So for sectors with highly sensitive data like government and financial services, on-premises solutions on controlled private networks often align better with compliance obligations.
Key Considerations by Business Size
Small Business – Limited budgets and IT staff favor cloud email solutions for the majority of small companies. Scalable pricing and reduced management overhead make cloud platforms the right choice in most use cases.
Midsize Business – As needs grow in scale and complexity, some midsize firms begin migrating partially towards on-premises or hybrid solutions. But many still operate efficiently with well-chosen cloud systems. Cost and staffing considerations are the biggest decision drivers.
Large Enterprise – Custom requirements around security, performance monitoring, and specialized integrations steer large corporations toward retaining on-premises email environments. Private cloud implementations help them reap some benefits of the public cloud model.
Conclusion
Determining the ideal email systems for your business depends on a wide range of factors from budget to compliance needs and internal vs external management preferences.
While today’s cloud solutions are exceptionally capable for a majority of use cases, traditional on-premises deployments retain an advantage in some specific high-stakes environments. And hybrid approaches help bridge these gaps where necessary.
Carefully weigh each of the critical considerations outlined here as they apply to your unique business needs. This helps frame the decision of cloud vs on-premises email in the proper context for your organization as you evaluate solutions.
