Local Verses Hosted Exchange Server Cost Comparison

Let's have a closer look at the breakdown of theSetupA Server $4,000-$10,000
costs of a local exchange server vs a hostedBackup hardware/software $2,000-$6,000
exchange service for an organization with 25 users.UPS $500-$1000 (stops your server being blown up
Please note that all pricing is for New Zealand in Newwith a power spike or power failure)
Zealand dollars.Microsoft Exchange Software & Licensing $6,100
Hosted Exchange CostsWarranty $500-$1,000
SetupTechnician to setup $2,000-$6,000
$100 one off per user cost to migrate all emails dataOngoing CostsBackups & Restores
to the new hosted exchange environment and$5,000-$10,000/year (1Hr/week either you or your
setting up users new exchange email.staff charged at $100/hr)
Monthly Cost$23 per user per month, which includesSLA $500-$2,000/year
spam protection (users can be added or removed asFixed IP Address $240/year
required)Power $300-$400/year
$17 per domain per month, domain name hosting i.e.Spam Protection $600-$2000/year
So total first year cost for 25 users/email addressesDomain $200/year
is fixed at $9604 and then $7104 per year.So total 1st year cost for a local exchange server
Local Exchange Server Costssetup will be between $22,000-$45,000 please note
With a local hosted server the costs would hugelythat does not include; technician time to perform
vary depending on whether you are going budget orupdates, technician time to perform backups and
purchasing high quality equipment and services.restores when you or your staff can't do it, repair
Therefore I have included a range, the reason beingfailed hardware, software upgrades or the fact that
you can go cheap i.e. use second hand hardware,server hardware generally last between 3-5 years
used a low skilled IT technician however these arewhere you would have to go through the whole
false economies and it generally will end up costingprocess of a new server and licensing expense again.
you more in time and hassle fixing the shortcuts thatWhen you compare the costs over a 3 year period
were taken in the future.there really is no choice.