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In-House Exchange vs Hosted Exchange – A Comparison Chart For Credit Unions

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Back when I ran an IT department for a large Credit Union, I can remember participating in user groups and conferences and proudly wearing the label “in-house” Credit Union. Being “in-house” usually meant large data centers and decent size teams – but mostly, it meant having complete control over the IT assets. And it made sense when all you had was a core processor and a few file servers. Fast forward to today’s complex Credit Union IT environment where one solution (core, email, online banking, lending, collections – you name it!) can have 3-5 servers just to get the job done! Slowly we started right-sourcing – first, we chose a hosted online banking solution which was soon followed by managed firewall services. Many Credit Unions have followed the same progression into hosted/managed services and are currently considering email as the next critical application to outsource. Making that decision – in-house exchange vs hosted exchange – can be tough so we’ve compiled a comparison chart to help you through the decision process. Our sales engineer, Barry Lewis has researched this extensively and after reading it, you may want to put away that “in-house” badge for good!

Comparison:

Feature

IN-HOUSE EXCHANGE

HOSTED EXCHANGE

Pricing Heavy Upfront Investment
Traditional, on-premise solutions have heavy upfront costs, unpredictable   expense spikes (often associated with annual software licenses), storage   growth fees, server and equipment failures, and ongoing maintenance costs.
Pay-As-You-Go, Monthly Pricing
Predictable, monthly pricing. This makes budgeting easier and streamlines   your cash flow, since you don’t have to worry about depreciation of expensive   upfront capital expenses.
TCO (Total Cost of Ownership) Capital Expense
With on-premise messaging solutions, you need to budget for significant   hardware and software capital expenses. Additional costs come in the form of   spare parts, overtime for administrative staff (especially if you want   24–7–365 reliability) and other maintenance-related expenses.
Operating Expense
There are minimal initial upfront commitments for installation   and no commitments for infrastructure, hardware or licensing, and ongoing IT   costs are minimal, so the returns are immediate, which results in much faster   payback periods.
Deployment Time Months
Because of the upfront capital investments, it usually takes several months   to properly purchase, setup, and configure most on-premise solutions.
Weeks
Clients can deploy OGO’s Hosted Exchange in weeks, rather than months,   because there is no hardware or software to install and provision.
Storage Spiraling Storage Costs
As your email volumes grow, generating more and more messages per day as well   as larger email attachments, you need to continually add more server   capacity. When your future growth is uncertain, this becomes even more   challenging.
Predictable Costs.
OGO’s Hosted Exchange leverages the latest and greatest storage technology,   shielding clients from the complexity of storage growth and management, while   providing you with the best technologies possible as soon as they are   available.
Enterprise Class Infrastructure Not Practical for Small and Medium-Sized Businesses.
The cost and complexity of implementing backup and recovery   systems, local clustering and high availability, and offsite replication of   archives to a disaster recovery site is overwhelming for many companies to   handle internally.
Table stakes for Multi-Tenant   Environments.
Hosted Exchange offer high availability to all of their clients and   invest millions of dollars to build secure and reliable infrastructures. This   includes server clusters and other forms of redundant hardware to ensure the OGO   solution is always available. Plus, OGO’s Hosted Exchange clients benefit   from geographically dispersed, SAS-70 II compliant data centers, full   redundancy and 99.99% network availability.
IT Expertise Lack of Messaging Expertise.
Estimates suggest that IT labor makes up approximately two-thirds of   messaging costs. Even a “simple” Exchange Server deployment is complicated,   and with complexity comes cost. The first cost you are likely to encounter is   training your administrative staff to design, deploy and maintain an   effective Exchange Server environment. As expensive and time consuming as the   training is, though, it quickly becomes obsolete.
Messaging Experts.
Hosted Exchange let you refocus your IT resources on more strategic   initiatives to help grow your Credit Union, instead of merely maintaining the   systems required to operate it. Ongoing Operations employs experienced and   certified staff to maintain their systems. In light of our service level   agreements (SLAs), this is a requirement.
Ongoing Maintenance Regular Patching & Monitoring.
With on-premise solutions, your IT department is responsible for all of the   day-to-day tasks necessary to keep your servers, storage, software, backup   systems and network up-and-running optimally 24–7–365. This includes security   patches, system upgrades and performing regular backups.
Offload the Headaches.
You can offload the burden and complexity by relying upon your service provider and our SLAs (usually exceeding 99.9%) to optimize email uptime. In order to   meet our stringent SLAs, Most providers (like OGO)  have  built-in redundancy and fail-over systems.
Client Service It’s All YOU.
When your email goes down, your IT department has to scramble to get it   up-and-running ASAP, because it is mission critical. And if you do not have a   disaster recovery or email continuity solution in place, it can often take   hours to troubleshoot. Consequently, IT departments need to provide regular   updates to users while at the same time investigating the root cause of   outages.
One Culprit to Blame.
Since you have effectively shifted your IT burden and headaches to Ongoing   Operations, we are on the hook to serve you. We offer clients expert support,   provided by a dedicated Support Services team, at no additional cost. Let us   do the worrying for you.
Upgrades Disruptive and   Unpredictable.
Your in-house staff must manage the on-going maintenance of email system to   ensure email is always up and running. With conventional software, it takes   considerable planning and effort to upgrade to newer versions and manage   upgrades.
Transparent,   Continuous Upgrades.
When you turn to a hosted solution, you immediately have a fully equipped,   top-of-the-line system that is continually updated and maintained. This saves   you thousands of dollars in server hardware, software, upgrades and the   expertise to run it all.
Scalability The Costs are   Already Invested.
When your company grows, your infrastructure must grow even faster. Scaling   an in-house Exchange environment requires planning and additional budget (to   purchase more servers or software). The problem is worse if your company is   downsizing, since you have already invested in and configured your system for   a specified number of users.
Easy to Add and   Subtract Users.
Since OGO has extensive hardware and software resources, we   can scale smoothly and easily. Cloud hosting, in particular, is especially   designed for scalability, since you only use and pay for the infrastructure   resources you need.
Antivirus/Anti-Spam Another Layer of Complexity.
An increasingly important part of administering a messaging environment is   providing a continuously updated advanced spam and virus solution to keep   your email secure.
Protection Already   Built-in.
Hosted Exchange offers an advanced level of spam and virus protection which   eliminates unwanted email before it ever reaches your inbox.
Administration Technical Expertise   Required.
With most on-premise environments, in-depth technical knowledge is required   to setup new users and perform tasks like email routing and managing mailbox   storage limits.
Web-based Control.
Hosted Exchange allow you to manage your entire hosted   email environment, including permissions, storage, mailbox creation and more,   with just a few clicks, using an intuitive control panel.
Disaster Recovery How Long Can You Go   without Email?
Research suggests that most small and mid-sized enterprises experience more   than 40 total hours of unplanned email downtime each year. And some estimates   suggest that upwards of 40 percent of these outages last more than 24 hours.
Access Your Email   Anytime, Anywhere.
Ongoing Operations is a disaster recovery company as well, and is better   equipped to recover from an email outage. In fact, we have built-in   continuity systems to ensure your data does not go down, even if one of our   data centers is impacted by network issues, hardware malfunctions, or   regional disasters.

Hosted Exchange service will save your Credit Union money, be more secure, provide disaster recovery protection, maximum email up-time and allow the Credit Union to more effectively and efficiently use its IT resources.

Ready to learn more?

Download our eBook: Hosted Exchange: A better email solution for for Credit Unions


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