Microsoft 365 Hosting vs. On-Premise: Difference Explained

Last updated on January 10th, 2023

With the advances in cloud technology, choosing between Microsoft Office 365 Hosting and On-Premise is no longer a challenging task. Cloud technology has become essential to the survival of most modern businesses. Small, mid-sized, and large enterprises are migrating to cloud storage because it is the ideal choice for a variety of reasons.

Microsoft has likewise recognized the value of the cloud and has phased out on-premise delivery, with Exchange Server 2019 being the last on-premise product version. All Office servers have now switched to a subscription-based approach. Let’s look at the differences between Microsoft Office 365 Hosting and On-Premise to see why shifting to the cloud is so beneficial to organizations.

Table of Contents

What is Microsoft Office 365 Hosting?

Hosting the Microsoft Office 365 on the cloud servers of a third party is referred to as Microsoft Office 365 Hosting. With Microsoft 365 Hosting, you will get bespoke apps adapted to your company needs, intelligent cloud services, top-notch security, and, most importantly, secure remote access.

What is Microsoft Office 365 On-Premise?

Microsoft Office 365 On-Premise signifies that your organization’s server is housed within its infrastructure and, in many situations, physically onsite. Your organization and its in-house IT staff, or an IT partner, control, operate, maintain, and procure the server. Data and other information are transferred between computers over your local network, which requires sufficient hardware with Exchange installed.

Quick Comparison Between Microsoft Office 365 Hosting vs. On-Premise

It is vital to remain competitive and innovative, and cloud technology helps you with that. It allows you to access files faster, comprehend complex data more readily, and promises greater security benefits. To help you make a better decision, let’s compare the prices, security protection, backups, and accessibility of Microsoft 365 hosting vs. an on-premise solution.

1. Costs & Maintenance

Deploying Microsoft Office 365 on-premise requires a significant upfront investment in hardware, installation, and software license fees. In addition, an on-premise solution will require a power and storage backup system, which will add to your costs. Also, we can’t forget the ongoing expense of hardware, software, and license upgrades.

On the plus side, one of the most significant advantages of using Microsoft Office 365 hosting is that there are no significant upfront expenditures. Subscription fees are charged on a monthly basis. Maintenance, up-to-date software, security, and support are all handled by the cloud provider, and your employees don’t have to waste time debugging issues.

Also Read: Office 365 is Now Microsoft 365: What’s New?

2. Data Backup

Disaster recovery might be every company’s greatest fear. Many people feel that Microsoft will handle everything, but this is not the case every time. Yes, it has strong security protections, however it lacks a safe backup facility. It means that data can be quickly lost as a consequence of bad encryption, malicious users, or natural disasters, leading to the loss of crucial information. Microsoft suggests using a third-party provider to back up your data. As a result, enterprises that use Microsoft Office 365 hosting must have backup solutions in place to maintain data security.

However, with an on-premise solution, your data is housed on an internal server, putting your firm at higher risk of data loss. A reputable cloud hosting service offers several capabilities to help businesses prevent data loss, such as built-in redundancy, backup, failover, monitoring, and more, allowing for faster recovery times as compared to on-premises options.

3. Security/Threat Defense

Whether you’re using Microsoft Office 365 in the cloud or on-premise, cloud security should be a top priority. If you choose the on-premise route with Microsoft 365, you’ll need a lot of security knowledge, as well as continual monitoring and maintenance of physical assets such as hardware, servers, and office space. To develop a strong firewall, you’ll need security solutions like encryption and secure access control. And, of course, it all takes a lot of time and money from within the company.

On the other hand, if you rely on the cloud, there is nothing better than this to relieve your workload. You will get robust, multi-layered security with the help of leading cloud providers like Ace Cloud Hosting, which is better than the Microsoft 365 on-premise solution. There, you’ll have a team of global cybersecurity professionals working to keep your company’s assets and data safe at all times.

4. Accessibility from Anywhere

When it comes to selecting the best Microsoft 365 solution for your organization, remote access is crucial. A Microsoft 365 on-premise solution might be a good fit if the majority of your users work in the same office and are rarely mobile. If your team needs remote access, though, nothing beats Microsoft 365 hosting. Because of this simplicity, Microsoft Office 365 Hosting is a perfect alternative for employees who will be using it regularly from home or on the go, without the need for a VPN. It’s also ideal for running apps that must be available at all times. Furthermore, the cloud facilitates file sharing, real-time collaboration, and improved version control.

Microsoft 365 Hosting eliminates any additional cost that incurs due to the hardware and IT requirements. Also, you only have to pay for resources that you are using. Further, you can optimize your costs to fit your budget.

Bottom Line

We hope that after reading the above Microsoft Office 365 Hosting vs. On-Premise comparison, you have a better idea of why people are shifting to the cloud and even Microsoft do so. Microsoft is aiming to regain clients with its new Microsoft 365 subscriptions. Microsoft 365 on-cloud deployment provides several features for modern enterprises, such as information security and the ability to grow the number of users or connect to new apps at any moment.

You no longer need to invest in IT infrastructure or software with continuous release cycles and automated upgrades when you leverage Microsoft Office 365 Hosting from Ace Cloud Hosting. Automatic backups and geo-replicated disaster recovery will be available to you. You can also use Skype for Business to easily move your staff and use offline sync for office apps. There is a lot you can accomplish if you choose Microsoft 365 Hosting.

Trust us! If you need remote access to Microsoft Office Suite, then Microsoft Office 365 hosting is a good investment. You can select an Ace Cloud Hosting Package – small business or large enterprise hosting plan – that best meets your company’s requirements.

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