Hosted Exchange - Rackspace vs AppRiver vs Office 365

ComputerPro

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Saginaw Michigan
We will soon be migrating several small bus clients over to hosted exchange. Just wondered everyones thoughts on Rackspace, AppRiver, and Office365 as far as hosted exchange?

I know Office365 is much more for the money, but I need to take into account support also.

Any downsides or horror stories with any of the three?
 
Like I mentioned on the chat.....I have tried about 15 different hosted exchange services and have settled on Appriver. I think they are the best company out there for this type of service.

The also include Spam & Virus Protection, Unlimited mailbox storage, ActiveSync, Public folder access, 30 Day deleted item retention period, Akamai Internet Optimization for better speed and reliability.....

My contact over there that I would recommend to talk to first and then she will get you in touch with the rep for your area:

Ashlee Mosley Brown
Channel Sales Advisor
AppRiver

850-932-5338 x 6402
abrown@appriver.com
www.appriver.com

Tell her that Shawn Scott with Advanced Computer Solutions, Inc from Fishersville, VA sent you. She will take good care of you!
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If anyone has anyone has any further questions feel free to reach out to me.
 
We have clients with Office 365, Appriver, and Rackspace.
Appriver is more expensive..but their support is tops.
Rackspace....sometimes takes a little longer to work with their support...but still decent.
Haven't had problems with our Office 365 clients direct through MS yet to rate their support.
 
We have clients on rackspace and o365. I've never had to try msft support, but rackspace has been good. We did a rackspace paid migration once, that was nice. They are giving it away currently. Msft exchange only is 4 dollars which can't be touched. I always tell the client to expect support to be darn near nonexistent. Then maybe we will get surprised.

If you have a client that needs more than exchange, msft is a good bet. I wouldn't mind collecting commission on 24 bucks per user! Haven't encountered one of those opportunities yet.
 
Actually we haven't been too impressed with any of the hosted exchange providers so we are currently in the testing phases of rolling out our own in-house hosted exchange for clients that are wanting to go this route.
 
Have you looked at Appriver? I don't think you can come close to offering your own in house solution compared to what this multi-million dollar enterprise class company can offer.

Just my opinion!
 
Have you looked at Appriver? I don't think you can come close to offering your own in house solution compared to what this multi-million dollar enterprise class company can offer.

Just my opinion!

Offering the same services is not the hard part. The difficulty is in offering the same services at a competitive price point and still be profitable. That is where the testing comes in. We are testing to see how efficient and reliable we can be at or below the average market pricing for hosted solutions.
 
We have used Intermedia hosted exchange for years and have been happy with their support. Their pricing and commissions seem reasonable compared to others I've seen. I would be interested in others experiences with them.
 
Offering the same services is not the hard part. The difficulty is in offering the same services at a competitive price point and still be profitable. That is where the testing comes in. We are testing to see how efficient and reliable we can be at or below the average market pricing for hosted solutions.

We did that early on....never found a way for it to be profitable and worth our time.
*Microsoft SPLA (licensing required if you resell services from their products...such as hosted exchange) is expensive. I know lots of IT guys just whip out their MAPS or technet licensing..which is really NFR..and do it like that..but that approach is illegal.
*Hardware...maintain servers...redundancy is also common sense...ability to grow as needed.
*Maintain replacement cycle with this hardware...keeping within warranty, keeping spare parts
*Maintain redundant internet connection...primary one being high SLA
*Maintain backup generator
*Maintain multiple backup locations in case of primary one going down...MX2, MX3...similar equipment at those locations to spool up when primary is down
*Disaster recovery/business continuity backup setup
*Antivirus licensing per mailbox
*Spam filtering, quarantine, etc

Couple of other things I can add to the list as I remember them..but if you want to do things properly..above board (legal)...no mickey mouse setup...you have at least those to deal with. It's some serious out of pocket cost. And time you spend maintaining your equipment which gets added to that (because most of us consider our time to be money).

With todays packages avail through the big guys like RackSpace or AppRiver...at substantially less prices that you can come up with doing this on your own....it's just crazy to try to whip it up yourself.
 
I 100% agree with you! Well written.

I pay $9.75 per mailbox and charge $13.95 ($1.00 more than Appriver would charge if they went directly). I have never had a customer complain about paying $12 per year more with going through me. I handle everything for them (administer their service) which also keeps me sticky with the client.

I had 120 accounts that I was making $4.20 per mailbox...that was $520 income for doing nothing other than managing adding, deleting new users. Very easy work. And if there was a problem Appriver would take care of it very quickly. I think I called them 2-3 times in the past year and it was actually an outlook issue that they assisted with. Also Appriver includes outlook free with every mailbox.....So if the client didnt have full version of office they still got outlook.

I also charge my normal rates for migration from their old mail service to this service and of course charge my normal rates as well.
 
rackspace

What about Rackspace vs Appriver for revenue?

Rackspace has a 'hybrid' model that lets you combine $10 exchange accounts with $2 RS mail accounts with the same domain.
Does Appriver have something like this? I can think of several clients where the owner and a few people would want Exchange, but the regular workers would just need basic email.

I'm just a little torn between these two. Crappy thing is I have very little time to test as a few clients want to make a move before the 1st of the year.
So I'm trying to cram some research into a few days.

Also I noticed that Appriver runs their hosted Exchange on Rackspace. Although I wouldn't think that would matter.
Are they both decent with spam filtering?

I have seen the Appriver reseller pricing model listed on TN but I couldn't find Rackspace. Is the profit model good on Rackspace also?

Thanks for all the great info so far!
 
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You will make 2 bucks per exchange box and .8 per regular box if you sell them for what rackspace does.
 
Yes appriver does do Split exchange/pop email accounts as well.

The only downside of Appriver is I think they have a 5 user minimum or a certain dollar amount per customer until you reach a certain point.

Reach out to one of the great reps that I have dealt with for several years and have her setup you up with a 30 day trial. Tell her that I referred you.

Ashlee Mosley Brown
Channel Sales Advisor
AppRiver

850-932-5338 x 6402
abrown@appriver.com
www.appriver.com
 
We did that early on....never found a way for it to be profitable and worth our time.
*Microsoft SPLA (licensing required if you resell services from their products...such as hosted exchange) is expensive. I know lots of IT guys just whip out their MAPS or technet licensing..which is really NFR..and do it like that..but that approach is illegal.
*Hardware...maintain servers...redundancy is also common sense...ability to grow as needed.
*Maintain replacement cycle with this hardware...keeping within warranty, keeping spare parts
*Maintain redundant internet connection...primary one being high SLA
*Maintain backup generator
*Maintain multiple backup locations in case of primary one going down...MX2, MX3...similar equipment at those locations to spool up when primary is down
*Disaster recovery/business continuity backup setup
*Antivirus licensing per mailbox
*Spam filtering, quarantine, etc

Couple of other things I can add to the list as I remember them..but if you want to do things properly..above board (legal)...no mickey mouse setup...you have at least those to deal with. It's some serious out of pocket cost. And time you spend maintaining your equipment which gets added to that (because most of us consider our time to be money).

With todays packages avail through the big guys like RackSpace or AppRiver...at substantially less prices that you can come up with doing this on your own....it's just crazy to try to whip it up yourself.

Yep it can be a lot of undertaking from scratch. That is where we have an advantage over some. We are already a fully functional WISP with most of what you listed already in play.
 
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