The Dark Side of Microsoft Exchange: The High Cost of Product Lock-In

There are reasons that people use Microsoft Exchange. Its features, abilities, everything it provides are wonderful, useful, and valuable to users of all sorts. Of course, these features and abilities come at a price, and a rather hefty price. This isn't really a surprise to anyone, after all, this is enterprise software we're talking about and such things tend to be expensive compared to consumer software. In the grand scheme of the enterprise, the price tag for Exchange is relatively small. Significant, but relatively small - or so it would seem at first.

The problem lies in the "hidden" costs of Exchange. First is the fact that on top of the actual price of the Exchange server, you have to pay for a Windows Server license. That's a few thousand dollars right there, for not only do you need the base cost of the software, you also need the Client Access Licenses (CALs) for all the users who are going to be accessing services on that server. After that, you need the Exchange Server. Oh yes, and all the requisite CALs for that server. Alas, the Windows Server CALs don't count for Exchange Server.

Once you have all the servers and licenses, there is the matter of hardware. In the past it was simply a matter of finding a server that fit your needs in regards to storage, performance, etc, but Exchange 2007 has needs of its own. Specifically, Exchange 2007 only runs on x86-64 hardware (64-bit processor-based systems). Whether a server of that magnitude and power is required for your situation, Microsoft insists that you use one. Unfortunately, x86-64 servers are still significantly more expensive than their 32-bit predecessors ($300 - $500 more). Not only that, but due to performance limitations of Exchange, production systems often need multiple servers, which then requires multiple CALs. This rapidly increases the cost of Exchange into the tens of thousands of dollars. But that is to be expected as we are dealing with enterprise-level hardware and software.

After that though, there is more buying to be had. Exchange compatible virus filtering, spam filtering, archival systems, backup and replication software licenses all add up, and adds up quickly. When all is said and done, that "slightly" expensive Exchange setup now costs well over a half million dollars.

Compare this to competitors, and you see that the total cost for Exchange is much, much higher. The PostPath Server, for example, can be as much as one-fifth the cost of Exchange. When talking about about hundreds of thousands of dollars difference in cost, it bears looking into the alternatives. While most are not fully compatible with Exchange (the exception being the PostPath Server), there are many that offer the same functionality as Exchange.

In conclusion, the sheer cost of Exchange warrants taking a second look before either implementing a new email system, or adding machines to your current Exchange system. Exchange has some excellent features, but that does not mean they are unique amongst mail servers, and with the potential of saving hundreds of thousands of dollars taking that second look is well worth it.