Microsoft Research Reports

Microsoft hosts the Microsoft Online Services, business services that offer productivity, communications, and collaboration features similar to those available in on-premises Microsoft server applications. Among these are Microsoft-hosted versions of Exchange Server, SharePoint Server, and Communications Server, as well as the Live Meeting conferencing service. These services are available in various tiers, each with different levels of functionality, and can be purchased separately or in license packages, including the Business Productivity Online Suite (BPOS).

Microsoft Online Services allow customers to save money they would have spent installing and administering on-premises servers, and to receive upgrades without buying and installing new versions of the software. However, customers will usually find themselves paying more money annually to Microsoft than they pay for equivalent on-premises licenses, and subscriptions must be maintained to continue receiving the services—ongoing payments that need to be weighed against savings from reduced personnel and hardware costs. Also, the Microsoft Online Services today do not offer all of the features of the corresponding on-premises software. Finally, using a hosted service has important implications for availability, data security and privacy, and compatibility.

This report is designed for IT planners and others who are considering moving some or all of their employees to the Microsoft Online Services in the BPOS. It describes each of the services available in the BPOS, how they differ from their on-premises equivalents, and their roadmaps for the next 12 to 18 months. It also explains how the services are licensed and their prices (where available). It does not cover the Windows Azure platform (a set of cloud-computing services for application developers) or Microsoft's consumer online services.

• Explains some of the pros and cons of the Microsoft Online Services, as well as packaging basics, including the differences between the Dedicated and Standard levels of service

• Describes the features in the Dedicated, Standard, and Deskless Worker tiers of Exchange Online versus Exchange on-premises, and discusses plans for the next service update

• Describes the feature differences in SharePoint Online Dedicated, Standard, and Deskless Worker versus SharePoint on-premises, plus expectations for the next service update, expected in late 2010

• Describes the features in Communications Online Dedicated and Standard, as well as Live Meeting, versus their on-premises equivalents, plus a roadmap covering the likely evolution of the services

• Licensing details for the Microsoft Online Services and their various packages, including the BPOS

• The management platform for the Microsoft Online Services will be updated in late 2010 or early 2011; desktop software management could be a focus of future updates

• Pointers to online resources related to Microsoft Online Services and the BPOS

• Chart: Dedicated and Standard Services
• Sidebar: Exchange Hosted Services
• Sidebar: Dynamics CRM Online
• Illustration: Microsoft Online Services: A Possible Roadmap