The Ultimate Guide to Microsoft's Calendar Systems
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Exchange On-Premise, Exchange Online and Office 365 – What's the difference?
Table of contents
Exchange On-Premise
Exchange On-Prem was long seen as the first choice for businesses. On-Prem generally refers to organizations having their own server for Exchange running within the organization, meaning that the company has total authority and control over hardware and software. All data is stored locally.
The advantage of On-Prem is also its disadvantage. Basically, the fact that the hardware belongs to the company is great from a security point of view. Backups, server updates and shutdowns are in total control. The same applies to public folders, mailboxes and other storage.
But since the hardware is controlled by the organization, it also becomes the organization’s responsibility to maintain and manage the hardware. This tends to be expensive since there’s a need for investment in both hardware and software, as well as linked licenses. In addition, there’s a need for expertise in multiple IT skills to implement and manage the Exchange Server.
Another note is that reliability and uptime of an On-Prem server is fully reliant on the configuration made internally, which in the end comes down to whether or not the level of infrastructure is successful enough to host an Exchange server. If the server crashes, the organization will have a hard time to do their job properly.
Exchange Online
It’s almost impossible to explain Exchange Online and Office 365 separately, but we’re going to give it a try. First: Exchange Online is an email server. With that said, let’s continue.
Microsoft has three different Exchange plans: Exchange Online Plan 1, Exchange Online Plan 2 and Office 365 Business Premium. Plan 1 includes (at the time of writing this article) 50GB of mailbox storage per user. It’s possible to connect to Microsoft Outlook and use the joint calendar and the scheduling management tool. For administrators, there are different tools to use to control Exchange Online. The Exchange Online admin portal is a centralized management tool that is used to control permissions, protection, and more. The difference between plan 1 and 2 is that plan 2 includes unlimited mailbox storage, call answering functions, and unified messaging features. Feature additions as data loss prevention are also included.
As you might understand, there are quite many differences between Exchange On-Prem and Exchange Online. On-Prem doesn’t enjoy the same online services and flexibility as Online. Features that are existing within Online might take a lot of work to deploy in On-Prem. However, On-Prem users are only restricted by their company’s budget and resources – everything is deployable in On-Prem while Online users are restricted to what’s put there by Microsoft.
Office 365
So, it’s time for Office 365! Office 365 is just as Exchange Online subscription-based cloud service. The server is hosted and maintained by Microsoft.
The difference is that in Office 365 you get the whole Microsoft service package (SharePoint, OneDrive, etc.) and all Office applications (Microsoft Word, Excel, etc.). Exchange Online is also included in the Office 365 suite.
While there’s no maintenance required by the end-user, the downside is that all data is stored by Microsoft. This per se doesn’t need to be negative, but it might be a lot harder to migrate the data if that’s necessary.
Which ones the best?
So far so good. But which one is the best then, you might wonder? Well, as usual, that depends on what your organization needs.
On-Prem usually benefits bigger companies who need to be in control of their data to a greater extent and that can afford the hardware investment that’s essential. Another scenario where On-Prem is beneficial is if there is a need for greater configuration and deployment. But for smaller and medium-sized businesses, Office 365 is probably a better solution in terms of cost. It should be noted that even if O365 is cheaper (especially when it comes to initial cost), it might get more expensive over time when new licenses need to be added.
Another advantage Office 365 has over On-Prem is the fact that it will work anywhere as long as there is an internet connection. As mentioned in the On-Prem section, the uptime is dependent on the internal server, while Office 365 is guaranteed to have minimal to no downtime. Microsoft is promising 99,9% uptime on the Exchange Online server which equals 8,77 hours of downtime each year. If the downtime is more and Microsoft doesn’t keep its promise, customers could claim a discount.
To be fair, most organizations choose Office 365 instead of Exchange On-Prem due to its simplicity. Office 365 has many advantages, but with that being said it doesn’t mean that On-Prem is bad.
What about Online then, you might ask? The reason why we’re not mentioning it here is that it’s pretty uncommon to just go Online. In most cases, the choice is either between On-Prem or Office 365, or another supplier than Microsoft.
Google Workspace
We couldn’t help but mention Google Workspace here as well. Workspace is the main competitor to Microsoft and therefore a big player in the calendar system arena. Like Office 365, Google Workspace is a subscription-based service for where the different Google programs as Drive, Docs, and Gmail are included.


Exchange On-Premise
Exchange On-Prem was long seen as the first choice for businesses. On-Prem generally refers to organizations having their own server for Exchange running within the organization, meaning that the company has total authority and control over hardware and software. All data is stored locally.
The advantage of On-Prem is also its disadvantage. Basically, the fact that the hardware belongs to the company is great from a security point of view. Backups, server updates and shutdowns are in total control. The same applies to public folders, mailboxes and other storage.
But since the hardware is controlled by the organization, it also becomes the organization’s responsibility to maintain and manage the hardware. This tends to be expensive since there’s a need for investment in both hardware and software, as well as linked licenses. In addition, there’s a need for expertise in multiple IT skills to implement and manage the Exchange Server.
Another note is that reliability and uptime of an On-Prem server is fully reliant on the configuration made internally, which in the end comes down to whether or not the level of infrastructure is successful enough to host an Exchange server. If the server crashes, the organization will have a hard time to do their job properly.
Exchange Online
It’s almost impossible to explain Exchange Online and Office 365 separately, but we’re going to give it a try. First: Exchange Online is an email server. With that said, let’s continue.
Microsoft has three different Exchange plans: Exchange Online Plan 1, Exchange Online Plan 2 and Office 365 Business Premium. Plan 1 includes (at the time of writing this article) 50GB of mailbox storage per user. It’s possible to connect to Microsoft Outlook and use the joint calendar and the scheduling management tool. For administrators, there are different tools to use to control Exchange Online. The Exchange Online admin portal is a centralized management tool that is used to control permissions, protection, and more. The difference between plan 1 and 2 is that plan 2 includes unlimited mailbox storage, call answering functions, and unified messaging features. Feature additions as data loss prevention are also included.
As you might understand, there are quite many differences between Exchange On-Prem and Exchange Online. On-Prem doesn’t enjoy the same online services and flexibility as Online. Features that are existing within Online might take a lot of work to deploy in On-Prem. However, On-Prem users are only restricted by their company’s budget and resources – everything is deployable in On-Prem while Online users are restricted to what’s put there by Microsoft.
Office 365
So, it’s time for Office 365! Office 365 is just as Exchange Online subscription-based cloud service. The server is hosted and maintained by Microsoft.
The difference is that in Office 365 you get the whole Microsoft service package (SharePoint, OneDrive, etc.) and all Office applications (Microsoft Word, Excel, etc.). Exchange Online is also included in the Office 365 suite.
While there’s no maintenance required by the end-user, the downside is that all data is stored by Microsoft. This per se doesn’t need to be negative, but it might be a lot harder to migrate the data if that’s necessary.
Which ones the best?
So far so good. But which one is the best then, you might wonder? Well, as usual, that depends on what your organization needs.
On-Prem usually benefits bigger companies who need to be in control of their data to a greater extent and that can afford the hardware investment that’s essential. Another scenario where On-Prem is beneficial is if there is a need for greater configuration and deployment. But for smaller and medium-sized businesses, Office 365 is probably a better solution in terms of cost. It should be noted that even if O365 is cheaper (especially when it comes to initial cost), it might get more expensive over time when new licenses need to be added.
Another advantage Office 365 has over On-Prem is the fact that it will work anywhere as long as there is an internet connection. As mentioned in the On-Prem section, the uptime is dependent on the internal server, while Office 365 is guaranteed to have minimal to no downtime. Microsoft is promising 99,9% uptime on the Exchange Online server which equals 8,77 hours of downtime each year. If the downtime is more and Microsoft doesn’t keep its promise, customers could claim a discount.
To be fair, most organizations choose Office 365 instead of Exchange On-Prem due to its simplicity. Office 365 has many advantages, but with that being said it doesn’t mean that On-Prem is bad.
What about Online then, you might ask? The reason why we’re not mentioning it here is that it’s pretty uncommon to just go Online. In most cases, the choice is either between On-Prem or Office 365, or another supplier than Microsoft.
Google Workspace
We couldn’t help but mention Google Workspace here as well. Workspace is the main competitor to Microsoft and therefore a big player in the calendar system arena. Like Office 365, Google Workspace is a subscription-based service for where the different Google programs as Drive, Docs, and Gmail are included.


Exchange On-Premise
Exchange On-Prem was long seen as the first choice for businesses. On-Prem generally refers to organizations having their own server for Exchange running within the organization, meaning that the company has total authority and control over hardware and software. All data is stored locally.
The advantage of On-Prem is also its disadvantage. Basically, the fact that the hardware belongs to the company is great from a security point of view. Backups, server updates and shutdowns are in total control. The same applies to public folders, mailboxes and other storage.
But since the hardware is controlled by the organization, it also becomes the organization’s responsibility to maintain and manage the hardware. This tends to be expensive since there’s a need for investment in both hardware and software, as well as linked licenses. In addition, there’s a need for expertise in multiple IT skills to implement and manage the Exchange Server.
Another note is that reliability and uptime of an On-Prem server is fully reliant on the configuration made internally, which in the end comes down to whether or not the level of infrastructure is successful enough to host an Exchange server. If the server crashes, the organization will have a hard time to do their job properly.
Exchange Online
It’s almost impossible to explain Exchange Online and Office 365 separately, but we’re going to give it a try. First: Exchange Online is an email server. With that said, let’s continue.
Microsoft has three different Exchange plans: Exchange Online Plan 1, Exchange Online Plan 2 and Office 365 Business Premium. Plan 1 includes (at the time of writing this article) 50GB of mailbox storage per user. It’s possible to connect to Microsoft Outlook and use the joint calendar and the scheduling management tool. For administrators, there are different tools to use to control Exchange Online. The Exchange Online admin portal is a centralized management tool that is used to control permissions, protection, and more. The difference between plan 1 and 2 is that plan 2 includes unlimited mailbox storage, call answering functions, and unified messaging features. Feature additions as data loss prevention are also included.
As you might understand, there are quite many differences between Exchange On-Prem and Exchange Online. On-Prem doesn’t enjoy the same online services and flexibility as Online. Features that are existing within Online might take a lot of work to deploy in On-Prem. However, On-Prem users are only restricted by their company’s budget and resources – everything is deployable in On-Prem while Online users are restricted to what’s put there by Microsoft.
Office 365
So, it’s time for Office 365! Office 365 is just as Exchange Online subscription-based cloud service. The server is hosted and maintained by Microsoft.
The difference is that in Office 365 you get the whole Microsoft service package (SharePoint, OneDrive, etc.) and all Office applications (Microsoft Word, Excel, etc.). Exchange Online is also included in the Office 365 suite.
While there’s no maintenance required by the end-user, the downside is that all data is stored by Microsoft. This per se doesn’t need to be negative, but it might be a lot harder to migrate the data if that’s necessary.
Which ones the best?
So far so good. But which one is the best then, you might wonder? Well, as usual, that depends on what your organization needs.
On-Prem usually benefits bigger companies who need to be in control of their data to a greater extent and that can afford the hardware investment that’s essential. Another scenario where On-Prem is beneficial is if there is a need for greater configuration and deployment. But for smaller and medium-sized businesses, Office 365 is probably a better solution in terms of cost. It should be noted that even if O365 is cheaper (especially when it comes to initial cost), it might get more expensive over time when new licenses need to be added.
Another advantage Office 365 has over On-Prem is the fact that it will work anywhere as long as there is an internet connection. As mentioned in the On-Prem section, the uptime is dependent on the internal server, while Office 365 is guaranteed to have minimal to no downtime. Microsoft is promising 99,9% uptime on the Exchange Online server which equals 8,77 hours of downtime each year. If the downtime is more and Microsoft doesn’t keep its promise, customers could claim a discount.
To be fair, most organizations choose Office 365 instead of Exchange On-Prem due to its simplicity. Office 365 has many advantages, but with that being said it doesn’t mean that On-Prem is bad.
What about Online then, you might ask? The reason why we’re not mentioning it here is that it’s pretty uncommon to just go Online. In most cases, the choice is either between On-Prem or Office 365, or another supplier than Microsoft.
Google Workspace
We couldn’t help but mention Google Workspace here as well. Workspace is the main competitor to Microsoft and therefore a big player in the calendar system arena. Like Office 365, Google Workspace is a subscription-based service for where the different Google programs as Drive, Docs, and Gmail are included.


Exchange On-Premise
Exchange On-Prem was long seen as the first choice for businesses. On-Prem generally refers to organizations having their own server for Exchange running within the organization, meaning that the company has total authority and control over hardware and software. All data is stored locally.
The advantage of On-Prem is also its disadvantage. Basically, the fact that the hardware belongs to the company is great from a security point of view. Backups, server updates and shutdowns are in total control. The same applies to public folders, mailboxes and other storage.
But since the hardware is controlled by the organization, it also becomes the organization’s responsibility to maintain and manage the hardware. This tends to be expensive since there’s a need for investment in both hardware and software, as well as linked licenses. In addition, there’s a need for expertise in multiple IT skills to implement and manage the Exchange Server.
Another note is that reliability and uptime of an On-Prem server is fully reliant on the configuration made internally, which in the end comes down to whether or not the level of infrastructure is successful enough to host an Exchange server. If the server crashes, the organization will have a hard time to do their job properly.
Exchange Online
It’s almost impossible to explain Exchange Online and Office 365 separately, but we’re going to give it a try. First: Exchange Online is an email server. With that said, let’s continue.
Microsoft has three different Exchange plans: Exchange Online Plan 1, Exchange Online Plan 2 and Office 365 Business Premium. Plan 1 includes (at the time of writing this article) 50GB of mailbox storage per user. It’s possible to connect to Microsoft Outlook and use the joint calendar and the scheduling management tool. For administrators, there are different tools to use to control Exchange Online. The Exchange Online admin portal is a centralized management tool that is used to control permissions, protection, and more. The difference between plan 1 and 2 is that plan 2 includes unlimited mailbox storage, call answering functions, and unified messaging features. Feature additions as data loss prevention are also included.
As you might understand, there are quite many differences between Exchange On-Prem and Exchange Online. On-Prem doesn’t enjoy the same online services and flexibility as Online. Features that are existing within Online might take a lot of work to deploy in On-Prem. However, On-Prem users are only restricted by their company’s budget and resources – everything is deployable in On-Prem while Online users are restricted to what’s put there by Microsoft.
Office 365
So, it’s time for Office 365! Office 365 is just as Exchange Online subscription-based cloud service. The server is hosted and maintained by Microsoft.
The difference is that in Office 365 you get the whole Microsoft service package (SharePoint, OneDrive, etc.) and all Office applications (Microsoft Word, Excel, etc.). Exchange Online is also included in the Office 365 suite.
While there’s no maintenance required by the end-user, the downside is that all data is stored by Microsoft. This per se doesn’t need to be negative, but it might be a lot harder to migrate the data if that’s necessary.
Which ones the best?
So far so good. But which one is the best then, you might wonder? Well, as usual, that depends on what your organization needs.
On-Prem usually benefits bigger companies who need to be in control of their data to a greater extent and that can afford the hardware investment that’s essential. Another scenario where On-Prem is beneficial is if there is a need for greater configuration and deployment. But for smaller and medium-sized businesses, Office 365 is probably a better solution in terms of cost. It should be noted that even if O365 is cheaper (especially when it comes to initial cost), it might get more expensive over time when new licenses need to be added.
Another advantage Office 365 has over On-Prem is the fact that it will work anywhere as long as there is an internet connection. As mentioned in the On-Prem section, the uptime is dependent on the internal server, while Office 365 is guaranteed to have minimal to no downtime. Microsoft is promising 99,9% uptime on the Exchange Online server which equals 8,77 hours of downtime each year. If the downtime is more and Microsoft doesn’t keep its promise, customers could claim a discount.
To be fair, most organizations choose Office 365 instead of Exchange On-Prem due to its simplicity. Office 365 has many advantages, but with that being said it doesn’t mean that On-Prem is bad.
What about Online then, you might ask? The reason why we’re not mentioning it here is that it’s pretty uncommon to just go Online. In most cases, the choice is either between On-Prem or Office 365, or another supplier than Microsoft.
Google Workspace
We couldn’t help but mention Google Workspace here as well. Workspace is the main competitor to Microsoft and therefore a big player in the calendar system arena. Like Office 365, Google Workspace is a subscription-based service for where the different Google programs as Drive, Docs, and Gmail are included.

