Microsoft® Online Services Cost

Microsoft® Online Services provide reliable, cost-effective, readily scalable online IT services to support your business. These services include:

  • Microsoft Exchange Online for enterprise messaging.
  • Microsoft SharePoint® Online for intranets and document sharing.
  • Microsoft Office Communications Online for real-time communication and presence
    (instant messaging and related capabilities).
  • Microsoft Office Live Meeting for interactive Web conferencing.

These Online Services can replace your on-premises software, or they can seamlessly integrate with your existing software. Your users get a streamlined experience with high availability, comprehensive security, and simplified IT management.

When you add Microsoft Online Services to your IT investment mix, you gain potential added value for your business in four main areas:

  • Finance: Reduced capital and operating expenses.
  • Process: Enterprise-class availability and highly secure operations.
  • Technology: Faster deployment of new services with access anywhere for your staff.
  • People: Simplified and more secure user and administrator access to services so that
    your staff can focus on the core business.

Online Services help reduce your capital and operational expenditures. You don’t have to
purchase or house hardware, or hire specialist staff to maintain it. You don’t need to pay
consultants. And you don’t have to purchase new software licenses every few years to upgrade to the latest version.

Furthermore, the costs when you move to Online Services are not only lower, they are more predictable. You pay a flat per-user, per-month fee. You always know what next month’s bill is going to be. You lock in that price for the duration of your contract; no need to plan for fluctuations in the cost of data center operations or software license pricing.
Finally, Online Services enable you to size your IT services to suit your business today, without the need to overinvest for anticipated future growth. As your business grows, you can grow your online services month by month to support it.

One example illustrates a 45-percent savings for an organization of 2,500 users. Table 1
compares in-house and Microsoft Online Services costs for the organization, all of whose users require e-mail, collaboration, and instant messaging services. In addition, 1,000 of these users need Web-based conferencing.
In calculating the in-house costs, we include the cost of hardware and software, and we take into account additional expenses for operations and deployment, along with the need to overdeploy slightly to accommodate anticipated growth. We also include the cost of purchasing redundant hardware and software licenses to enable high availability.


As Table 1 shows, high availability is a cost-free feature of Microsoft Online Services, and
because the online service solution is readily scalable at any time there is no need to overallocate hardware or software licenses ahead of time; growth is absolutely on-demand.
The bottom line is that in this very realistic illustration, the per-user-year cost is reduced from $55 to $30, which is approximately 45 percent over three years.

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