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Study Doubts Office 365’s Value For Money At Enterprise Level

A recent study commissioned by Azaleos, a Microsoft National Systems Integrator partner, has produced some interesting points regarding the cost effectiveness of Office 365.

The research found that in the case of smaller businesses with more basic needs, Office 365 could certainly offer cost savings compared to a private cloud (on-premise) deployment. However, those cost savings don't necessarily scale to a larger enterprise.

Larger companies may actually find Office 365 a bigger fiscal resource drain, should they be needing (as is likely) to utilise advanced features.

The study used the model of a 5,000 employee company over three years for costing purposes, and found that a private cloud would be 20 per cent less expensive in providing "enterprise-grade" capabilities. Although equally, for smaller businesses just needing the basics, the Office 365 cloud suite would also provide a saving in the order of 20 per cent.

The research further notes that elements such as paying to add voice capabilities to a Lync deployment, for example, is more expensive with Office 365 than with a private cloud setup.

Microsoft has always pushed its cloud office suite forward as a big cost saver, and indeed it is compared to a traditional office setup. However, the point is it may not be quite so cost effective for bigger firms, who could well be better off going the private cloud route.

Source: Redmond Channel Partner