SAAS or On-Premise E-mail: Which is Best? - SAAS: Microsoft Exchange Hosted Services
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SAAS SOLUTION
Microsoft’s Exchange Hosted Services (EHS)
Just as the name implies, a hosted solution is basically a SaaS offering that is available over the Web and runs on remote hardware that they or a vendor hosts. That vendor can be a specialty SaaS company (like RackSpace), a large software company (Microsoft) or even something a solution provider has built. Regardless, the concept is that the end customer is “leasing” or “renting” the software and hardware to gain access to the desired solution. Hosted solutions are becoming increasingly popular as prices fall and capabilities increase.
Many solution providers may consider Microsoft’s entry into the SAAS market a threat to their business revenues, but with some planning and forethought, along with some integration services, Microsoft’s EHS can generate revenue and help to build long-term customer relationships. The trick is to offer EHS as part of a larger solution and highlight the services benefits, while still leveraging an on premise solution as part of the mix. After all, any small business is going to need a lot more than just hosted Exchange and SharePoint.
With that in mind, we put together a configuration that offers onsite storage and file sharing, along with security and backup.
|
Network Attached Storage Appliance (2TBytes) |
$1,500 |
|
Security Appliance/FireWall/UTM Device |
$1,200 |
|
Data backup Solution (Drive & Software) |
$1,200 |
|
Installation and Setup ($90/hour) |
$1,080 |
|
Estimated Maintenance & Support (3 Years) |
$3,240 |
|
Microsoft Business Productivity Online Suite (10 users/3 years) |
$5,400 |
Solution providers will find that building a solution using Microsoft’s Business Productivity Online Suite (BPOS) works out to a three-year cost of $13,620 for a customer with 10 seats. Microsoft is compensating partners with a commission structure, where a registered partner will earn a commission of 18 percent the first year and 6 percent for any following years. In this scenario, a partner could expect to earn $540 in commission over three years, add that to the gross profit from hardware, services and support and a solution provider should expect to earn about $5,400.
While a solution built around BPOS offers the lowest gross profit for a solution provider, it does also turn out to be the least expensive solution for a customer. That said, solution providers should be able to derive additional revenue from the integration of additional products, training and support, all without busting the customers budget.
Messaging and Collaboration 
