Microsoft 365 · Exchange Online

Microsoft Exchange Online — business mail in the cloud.

Exchange Online is the cloud mail platform of Microsoft 365 — mailbox, calendar, contacts as SaaS, with Defender for Office 365 as an integrated security layer and Microsoft Purview for compliance and retention. arades GmbH delivers migration, setup, security hardening, and ongoing monitoring.

Microsoft Partner 20+ years mail practice EOP & Defender Hybrid & Cloud-Only

Exchange Online at a glance

Mail, calendar, and contacts — as SaaS.

Exchange Online delivers business mail, calendar, contacts, and tasks as a cloud service. Instead of operating your own Exchange servers, DAGs, patches, and backup strategies, you pay a license per mailbox per month — and get a highly available, globally distributed platform with 50 GB or 100 GB mailboxes.

Mailbox & calendar

50 GB (Plan 1) or 100 GB (Plan 2) per mailbox, with online archive (Plan 2 unlimited). Outlook on desktop, web, and mobile — plus modern Outlook features like shared calendars, rooms, and bookings mailboxes.

Shared mailboxes & distribution lists

Shared mailboxes (e.g. info@, service@) without their own license as long as under 50 GB. Distribution groups and Microsoft 365 groups for team mail — managed in the Exchange admin center and the Microsoft 365 admin center.

Transport rules & connectors

Mail flow rules, disclaimers, forwarding, SMTP relays, and connectors to third-party systems (e.g. mail-archiving solutions or line-of-business apps). Full control over the mail flow without any own hardware.

License plans

Exchange Online plans and pricing.

Four paths to an Exchange Online mailbox — from the low-cost Kiosk variant through standalone plans to integrated Microsoft 365 packages.

01

Exchange Online Plan 1

50 GB mailbox, Outlook on desktop/web/mobile, calendar, contacts, tasks, Exchange Online Protection (anti-spam and anti-malware). Default choice for most mid-market companies without another Microsoft 365 license.

  • List price: around €4 / mailbox / month
  • 50 GB mailbox
  • EOP baseline protection included
02

Exchange Online Plan 2

100 GB mailbox plus unlimited online archive, litigation hold, in-place hold, DLP for mail, and advanced compliance features. For regulated industries or power users with high-volume mailboxes.

  • List price: around €8 / mailbox / month
  • 100 GB mailbox + archive
  • Litigation hold & DLP
03

Exchange Online Kiosk

Most affordable variant for frontline workers (shift, production, field service) with limited mailbox size and web access. Useful for users who need mail only occasionally.

  • List price: around €2 / user / month
  • 2 GB mailbox, web access
  • For frontline scenarios
04

Included in Microsoft 365

Exchange Online is already included in Microsoft 365 Business Basic, Standard, Premium, and all enterprise plans (E3, E5) — Plan 1 in Business and E3, Plan 2 in E5. The most economical path.

  • Business Basic from ~€5 / user / month (incl. Plan 1)
  • Business Standard from ~€11
  • E3 from ~€35, E5 from ~€55

License Cost Calculator ↗

Pricing notice: Microsoft adjusts list prices regularly (currency adjustments, NCE updates, plan restructurings). Figures here are indicative values from May 2026. For current prices including arades CSP conditions, see the License Cost Calculator (licenses.arades.de) ↗ daily.

Hybrid vs. cloud-only

Which operating model fits.

Cloud-only setups are simpler, cheaper, and safer for most mid-market companies. Hybrid setups have their place — as a migration bridge or for special cases.

Cloud-only Exchange Online

All mailboxes in the cloud, no own Exchange infrastructure. Identity in Entra ID (with or without hybrid AD sync), MX record on Microsoft Exchange Online Protection. Standard path for mid-market companies without regulatory special requirements.

  • Lowest TCO, no hardware
  • Microsoft-managed patching, backup, HA
  • Full feature set incl. Defender, Purview

Hybrid Exchange

Mix of cloud mailboxes and on-premises mailboxes with shared mail routing, free/busy sharing, and a unified address list. Useful during migrations or for regulatory requirements on specific mailboxes.

  • Migration bridge with the Hybrid Configuration Wizard
  • SMTP relay scenarios for legacy systems
  • Mailbox moves in waves with mailbox move requests

Migration

From on-premises, Google Workspace, or IMAP.

Exchange migrations have been our core business for over 20 years. Four migration scenarios cover practically any starting point.

Four migration scenarios

  • Exchange on-premises (cutover): For small environments under 150 mailboxes — all mailboxes in a single step into the cloud. Realistic timeline 2–4 weeks.
  • Exchange on-premises (hybrid): For larger environments — Hybrid Configuration Wizard, migration in waves, free/busy during coexistence. Realistic timeline 6–12 weeks.
  • Google Workspace: Microsoft Migration Manager with the Google Workspace connector or BitTitan MigrationWiz. Mail, calendar, contacts, and Drive content in parallel.
  • IMAP / third-party providers: IMAP migration for providers like 1&1, Strato, IONOS, IBM Notes, or Open-Xchange. Mail only (no calendar), combined with manual contact/calendar takeover.

Common pitfalls: MX record switch with a coexistence phase, Outlook profile migration, public folder strategy, Autodiscover, SPF/DKIM/DMARC setup. For each point, we have standard solutions ready from many practical engagements.

Security & Defender for Office 365

Mail is the number-one attack surface.

Phishing, business email compromise, and ransomware almost always come in via email. Exchange Online Protection (EOP) is the baseline — Defender for Office 365 the second layer.

Exchange Online Protection (EOP)

Anti-spam and anti-malware as baseline protection, included in every Exchange Online plan and every Microsoft 365 plan. Sufficient for classic spam/malware threats, but not for targeted phishing campaigns.

Defender for Office 365 Plan 1

~€1.90 / user / month (add-on)

Safe Attachments, Safe Links, anti-phishing with impersonation protection. Included in Microsoft 365 Business Premium and E5. Standard recommendation for every mid-market company.

Defender for Office 365 Plan 2

~€4.60 / user / month (add-on)

Threat Explorer, Attack Simulation, automated investigation & response. Included in Microsoft 365 E5. For compliance-driven industries or companies with a security operations team.

Compliance & retention

Retention, litigation hold, eDiscovery.

Exchange Online integrates with Microsoft Purview for retention, litigation hold, and eDiscovery — the most common compliance topics around email.

Four compliance building blocks

  • Retention policies: how long is mail retained, when is it automatically deleted? Per mailbox or per organization, with exceptions for legally sensitive mailboxes.
  • Litigation hold & in-place hold: preserve mail beyond the retention period (Plan 2 / E3 / E5).
  • eDiscovery: structured search and export for internal investigations or regulatory inquiries. Standard in Plan 2, premium in E5.
  • DLP (data loss prevention): rules against the unintentional sending of credit card numbers, IBANs, social security numbers. Available in Plan 2 / E3 / E5.

Licensing, pricing & cost →

arades services around Exchange Online

What we deliver on Exchange Online.

Six concrete deliverables around Exchange Online — as a discovery spike, fixed-price project, or under an application-care contract.

Exchange migration

Cutover, hybrid, or IMAP — migration from Exchange on-premises, Google Workspace, IBM Notes, or classic mail providers to Exchange Online. Including MX switch and Outlook profile migration.

Exchange Online setup

Tenant configuration, mailbox provisioning, transport rules, connectors, public folder strategy, SPF/DKIM/DMARC, Autodiscover. A clean foundation for long-term operation.

Security hardening

Defender for Office 365 setup, Safe Attachments and Safe Links, anti-phishing policies, MFA enforcement for mailbox access, Conditional Access in Entra ID — together with your IT team.

Compliance & retention

Microsoft Purview retention policies, litigation hold, eDiscovery setup, DLP rules — configured and documented along your industry and compliance requirements.

Monitoring & reporting

Ongoing monitoring of mail security, quarantine reviews, reports on phishing attempts and blocked attachments — as part of an application-care contract.

Hybrid bridge

Hybrid Exchange for migration phases or regulatory special cases. Build, operate, planned decommission after a successful cutover — without the hybrid bridge turning into a permanent solution.

Frequently asked questions

Exchange Online — key answers.

What does Exchange Online cost?

Exchange Online Plan 1 is around €4 per mailbox per month (50 GB mailbox, mail, calendar, contacts). Plan 2 is around €8 (100 GB mailbox, in-place hold, unlimited archive, DLP). The Kiosk license for frontline workers at around €2 per user per month is the lowest-cost option — with limited mailbox size and web-only access. Exchange Online is already included in all Microsoft 365 Business and Enterprise plans.

When does a hybrid setup make sense?

Hybrid Exchange makes sense when migration from Exchange on-premises has to happen in stages, certain mailboxes must remain on-prem for regulatory reasons, or specific SMTP relay scenarios for third-party systems exist. Pure cloud setups are simpler, more economical, and more secure for most mid-market companies — hybrid is the bridge, not the destination. We build hybrid bridges for the migration phase and intentionally tear them down after a successful cutover.

How does an Exchange on-premises migration work?

A cutover migration (for small environments under 150 mailboxes) moves all mailboxes in a single step. For larger environments, the migration usually runs as a hybrid migration in waves — using the Hybrid Configuration Wizard, migration batches, and mailbox move requests. MX record switch, Outlook profile migration, public folder strategy, and DNS adjustments (Autodiscover, SPF, DKIM, DMARC) matter. Realistic timeline 4–10 weeks depending on environment size.

How do I migrate from Google Workspace to Exchange Online?

Google Workspace migrations typically run via Microsoft Migration Manager with the Google Workspace connector or via third-party tools like BitTitan MigrationWiz. Mail, calendar, and contacts are taken over, while Google Drive content moves in parallel to SharePoint and OneDrive. Key points: domain verification in both tenants, a coexistence phase with dual mail routing, and end-user training — the UX differences between Gmail and Outlook are the real adoption topic.

Do I need Defender for Office 365 in addition to Exchange Online?

Exchange Online includes baseline anti-spam and anti-malware (Exchange Online Protection, EOP) — that covers classic spam filtering. Defender for Office 365 Plan 1 (around €1.90 per user/month) adds Safe Attachments, Safe Links, and anti-phishing for business email compromise. Plan 2 (around €4.60) additionally brings Threat Explorer, Attack Simulation, and automated investigation. In Microsoft 365 Business Premium Plan 1 is included, in E5 even Plan 2. For mid-market companies we recommend at least Plan 1 as the standard.

How do compliance and retention work in Exchange Online?

Microsoft Purview retention policies define how long mail is retained and when it's deleted — even when the user actively deletes. In-place hold and litigation hold (Plan 2 / E3) keep mail beyond the retention window for regulatory or legal purposes. eDiscovery (Plan 2 / E3 / E5) allows structured search and export for internal investigations or regulatory inquiries. We configure the policies along your industry and compliance requirements.

Can arades GmbH provide Exchange Online licenses?

Yes — as a Microsoft Licensing Partner and CSP, we provision Exchange Online Plan 1, Plan 2, Kiosk, and all Microsoft 365 plans in which Exchange Online is included. Defender for Office 365 Plan 1 and 2 are available the same way. You see list price and arades price transparently in the License Cost Calculator and get a monthly aggregated invoice in euros.

Free Microsoft 365 trial guidance

Test Microsoft 365 for 30 days — guided, not left on your own.

arades sets up a test tenant for 3 users, trains your key users, runs weekly office hours — and tells you honestly at the end whether Microsoft 365 is the right fit. Free of charge.

Exchange Online — initial conversation

Migration, security, or compliance — where are you?

30-minute initial conversation — we clarify whether it's about a migration from Exchange on-premises, a Google Workspace replacement, Defender for Office setup, or retention policies. Concrete recommendation usually within one business day.

Accompanying services

What typically runs alongside this engineering work.

Engineering projects rarely stand alone — license logic, architecture clarification, quality gates, knowledge transfer, and follow-on operations usually run in parallel. The most common accompanying services we book into discovery spikes, sprint fixed-price, or application-care contracts.

Upfront · Architecture

Advisory & Architecture

Before implementation: tenant structure, data model, security concept, integration mapping. The result is an architecture document any engineering team can pick up — including one other than us.

Read more →

Upfront · CSP

License Advisory & CSP

Which license bundles for which users, which add-on SKUs are necessary, where you're over- or under-licensed. Sourced as a Microsoft Licensing Partner — with the option to use CSP as a control without margin maximization.

Read more →

During · Quality gate

Project Assurance

Independent second opinion during an ongoing implementation project — whether we run it ourselves or another partner does. CMMI-based quality gates, risk reviews, fixed price per gate.

During · Adoption

Training & learning programs

Not the classic two-day workshop forgotten a week later — but a dynamic learning program over 4–6 weeks with initial training, application phases, and follow-up sessions. Training matrix by role and topic.

Read more →

After · Operations

Application Care

Post-go-live: a predictable application-care contract with a monthly flat rate, SLA-based. Includes releases, hotfixes, extensions, tenant hardening — and continuous accompaniment rather than mere ticket reaction.

Read more →

After · Knowledge

Knowledge Recovery

When the original developers are gone, the previous partner is no longer reachable, or the documentation is outdated — reverse engineering of the existing solution with a documented result: code map, data model, customization inventory.

Read more →