If you're running a business email system in New Zealand, you've probably heard of both Microsoft 365 (formerly Office 365) and Hosted Exchange. But what's the difference — and which one is right for your business?
In this article, we break down both options clearly, so you can make an informed decision.
What Is Hosted Exchange?
Hosted Exchange is a cloud-based email service built on Microsoft Exchange Server technology. A third-party provider (like Imatec) hosts and manages the Exchange server on your behalf. You get professional business email with shared calendars, contacts, and tasks — without having to run your own server.
Hosted Exchange is email-focused. It gives you a robust, reliable email platform without the full Microsoft 365 suite.
What Is Microsoft 365?
Microsoft 365 (formerly Office 365) is a comprehensive cloud productivity suite that includes Exchange Online (business email) plus a full range of applications and services:
- Word, Excel, PowerPoint, Outlook (desktop and web apps)
- Microsoft Teams (video calls, chat, collaboration)
- OneDrive (cloud file storage — 1TB per user)
- SharePoint (team file sharing and intranet)
- Microsoft Defender (security tools)
Key Differences
| Feature | Hosted Exchange | Microsoft 365 |
|---|---|---|
| Business email | ✅ Yes | ✅ Yes |
| Office apps (Word, Excel etc) | ❌ No | ✅ Yes |
| Microsoft Teams | ❌ No | ✅ Yes |
| OneDrive storage | ❌ No | ✅ 1TB per user |
| Monthly cost (approx) | $5–$8/user | $10–$25/user |
| Best for | Email-only needs | Full productivity suite |
Which Should You Choose?
Choose Hosted Exchange if: You only need business email and you're happy with your existing productivity tools (e.g., you already have Office licences or use Google Docs).
Choose Microsoft 365 if: You want a complete, integrated productivity platform. For most NZ businesses, Microsoft 365 Business Basic or Business Standard offers exceptional value — you get email plus Teams, OneDrive, and the Office apps for a reasonable monthly cost.
Our Recommendation for Most NZ Businesses
For most of our clients in Matamata and Tauranga, we recommend Microsoft 365 Business Basic or Business Standard. Here's why:
- The additional cost over Hosted Exchange is minimal
- Teams has become essential for business communication
- OneDrive provides excellent cloud backup and file sharing
- Microsoft's security tools are included and actively protect your business
“We migrated from Hosted Exchange to Microsoft 365 two years ago and haven't looked back. Teams alone has transformed how our team communicates.” — Imatec client
Need Help Choosing or Migrating?
Imatec handles Microsoft 365 licensing, setup, and migration for businesses across Matamata and Tauranga. We'll assess your current setup and recommend the right plan for your needs and budget.