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I want to move a small company of 40 exchange users to an online hosted email service because of the cost.
Can anyone give me a good reason why to stay with my Windows Exchange 2003 box VS to just have my 40 users pop3 their email directly to their machine and archive it from there?

What you'd lose to do this...
*Calendaring
*Tasks
*Central directory for all users to leverage contact information
*Increased labor and costs to backup each workstation
*Increased potential for data loss
*Loss of higher availability for email services and data such as address books, since if a client's machine were to go down, they'd lose access to their address book and emails received until it could be restored
*Cost to migrate away, and possible costs to migrate back should you need any of this functionality later
*ActiveSync capability
*Increased potential for security breaches to mailbox accounts, since POP3 sends user account information in the clear over the internet.
*Loss of flexibility to access all mail in mailbox and address book from any computer since downloaded messages and address book would be stored per client.
*Increased costs and administrative effort in setup of new client accounts and client configuration
*Increased costs and administrative effort dealing with issues related to account/passwords being wrong, etc.
*Potential loss of ability to customize email services to suit your organization, such as actions required for industry regulatory compliance, spam policies, file attachment regularities, etc.That's just off the top of my head...
"Enough, enough bowing down to disillusion!
Hats off & applause to rogues & evolution!
The ripple effect is too good not to mention.
If you’re not affected, you’re not paying attention!"

Lets add no shared calendars, more spam, more infected wksts due to virus's.
I believe you will find it is not cost effective due to increased network/email admin costs/labor and lost productivity of the individuals due their wksts being offline/corrupt.
Knowing the correct answer and giving a correct answer, are two different things

What costs are you incuring?
Bandwidth? does not take much
Per user? 75$ per user is a one time cost.What else?

We had a sale of company and as a result, we will be loosing our exchange server in a couple months. So instead of purchasing a new server, Microsoft Server license, Microsoft exchange, and Microsoft Exchange CALs, I figure moving everyone, 30-40 users, to POP3 would be cheaper.
No one here uses calendar sharing, task list sharing, or any folder sharing.
We would loose a centralized contacts list, but I am working on a fix for this.
I would need to set up each machine to back up their inboxes to the server share. One time setting.
Online mailboxes already support excellent SPAM and Virus protection. This is good because it is done even before the chance of getting to the company. I would still keep a corporate client virus protection running on each machine.
As goes for all the rest, we don't use any of the fancy customizations exchange has to offer anyways. In the past, we have set up and exchange box and left it running at the out of the box settings.
The reason I am questioning this is because we used to have 100+ people on an exchange box across 4 divisions. It made sense then. Now, one company division and 30-40 users with little money and knowledge in the exchange world... Is it worth it??
Thank you for all your thoughts. They are all being taken seriously.

If you would need to buy a new server, for that few number of users, I'd highly suggest investigating Small Business Server 2003 R2. It is very easy to manage once setup properly.
"Enough, enough bowing down to disillusion!
Hats off & applause to rogues & evolution!
The ripple effect is too good not to mention.
If you’re not affected, you’re not paying attention!"

Ok. What would SBSr2 give me that 2003 wouldn't? Or what would be better?
And then still go with Exchange 03?

The interface is geared for non-technical people to do the routine tasks within Windows and Exchange. SBS2003 includes Windows, Exchange, Sharepoint in one package. The Premium version also includes SQL and ISA.
"Enough, enough bowing down to disillusion!
Hats off & applause to rogues & evolution!
The ripple effect is too good not to mention.
If you’re not affected, you’re not paying attention!"

So with a SBSr2 server, what would you suggest for a secondary server for strickly file share? SBSr2 also? Just don't install the exchange stuff?
As you can see, I have never used SBS b4...

You can't have more than one SBS server. It would need to be a Windows 2003 Server, or you could go with a Linux Samba server.
Or just beef your SBS box enough so it can handle file sharing. It's gonna be running file sharing anyway since it's a DC.
"Enough, enough bowing down to disillusion!
Hats off & applause to rogues & evolution!
The ripple effect is too good not to mention.
If you’re not affected, you’re not paying attention!"

Ok, here is my setup (And I didn't set it up):
I have a W2k3 DC with Exchange 2003 installed and Exchange and DFS being used, AD running. (DELL PE 1500C,P1133,1.25gig ram)A W2k3 server for file sharing and IIS for an intranet, no AD. (DELL PE 1600sc,X2000,1.54gig ram)
A W2k server only being used as print sharing, AD running. (DELL Opt gx280,P2800,512)
A W2k server only being used to share some dinosour DOS program to 5 different machines out in the shop, no AD. (DELL Opt gx110,P1000,256)
A W2k server on the other end of a fiber run going to the building next door used for file sharing, no AD. (DELL,Opt gx110,P1000,256)
An NT box with WinRoute for routing and firewall. (DELL Opt gx1,P450,256)
I want to wipe out all of this and have one SBSr2 machine (like you suggested) and maybe one file/print sharing machine.
Can I bring my SBSr2 into this environment without effecting the rest? And then bring the rest down except the W2k3, which I would uninstall Exchange off of and move all my files and printers too? And keep the winroute box.

I don't understand. If you have this infrastructure already, why get rid of it?
"Enough, enough bowing down to disillusion!
Hats off & applause to rogues & evolution!
The ripple effect is too good not to mention.
If you’re not affected, you’re not paying attention!"

This is WAY to many servers for what I need. Why admin 5 servers for 40 users?
AND with the sale, I am loosing all the liceses to these servers.
I want to simplify things.

Less servers simplify administration only if you're providing less services.
When you consolidate, when one server goes down, or needs to be worked on to resolve an issue, there's far greater potential to lose other services or screw them up in the process.
Also, combining services on the same server can yield more security vulnerabilities.
Small businesses don't go with less servers for it to be easier. They go with less servers as an economical compromise. You already paid for them, so costs to maintain them and software licenses will be minimal. Case in point - you need the same amount of CAL's either way; you're just having to pay for an additional OS license, which isn't that much.
You don't need to keep all the servers, but I would seriously rethink this.
"Enough, enough bowing down to disillusion!
Hats off & applause to rogues & evolution!
The ripple effect is too good not to mention.
If you’re not affected, you’re not paying attention!"

1)I want to transfer my file shares off and temp put them on the exchange box.
2)Then install SBSr2 from scratch on the old file share box.
3)Then move all the exchange users to the SBS box. Leave the files on the old exchange box and just leave the print shares where they are for now.
Do you see any issue bringing the SBS box up nex to the old Exchange box and moving the exchange users over and killing exchnage on the old box?
Isn't it true with AD running on servers they are all DCs? There is no more demoting and promoting.. Right?
(I'll bet your asking "I thought you had 8 years exp?" I was all client end before the sale, not server side.)

Seriously, get a consultant. My advice isn't going to give you the right solution in all this, since I don't know your particular environment that well from this info.
"Enough, enough bowing down to disillusion!
Hats off & applause to rogues & evolution!
The ripple effect is too good not to mention.
If you’re not affected, you’re not paying attention!"

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