Small businesses are often told Microsoft 365 is the only “professional” option. In reality, well-managed hosted email can be just as reliable, more predictable in cost, and easier to support—depending on how your business works day-to-day.
Rule of thumb: if you primarily need email + calendar + dependable support, hosted email can be excellent.
If you need Teams/SharePoint collaboration deeply embedded into workflows, Microsoft 365 often wins.
At-a-glance comparison
| Category | Microsoft 365 | Managed Hosted Email |
|---|---|---|
| Best for | Office collaboration (Teams, SharePoint), bigger knowledge-worker environments | Lean SMEs wanting stable email, predictable pricing, direct support |
| Cost predictability | Can increase with add-ons (security, archiving, backup) | Often simpler packages (mail + security + backup) |
| Support experience | Varies; often ticket-based and layered | Typically direct access to engineers managing the platform |
| Security posture | Strong, but depends on configuration and correct licensing | Strong if authentication, filtering, MFA and monitoring are managed |
| Compliance/archiving | Broad options (often add-ons) | Available, but platform-dependent |
Microsoft 365 strengths
- Generous mailbox quotas and enterprise-grade Exchange Online.
- Integration with Outlook, Teams, SharePoint and OneDrive.
- Compliance tooling available for regulated environments (often licensed separately).
Microsoft 365 weaknesses
- Licensing complexity (it’s easy to pay for features you don’t use).
- Hidden costs for security, archiving and backup once you move past “basic”.
- Support friction when issues span Microsoft + DNS + third-party devices/apps.
Managed hosted email strengths
- Lower and more predictable cost for email-first organisations.
- Simpler administration and fewer moving parts.
- Direct support from engineers who manage the infrastructure.
- Good fit for bespoke systems (web forms, app notifications, SMTP relays) when correctly configured.
Security and compliance: what really matters
Both platforms can be secure if configured correctly. The real difference is who owns and maintains the operational controls:
SPF/DKIM/DMARC
MFA & access
Backup/retention
Monitoring
Incident response
Which is right for you?
- Choose Microsoft 365 if collaboration is central (Teams/SharePoint) and users need Office apps/licensing anyway.
- Choose managed hosted email if you want robust email with strong deliverability, predictable cost and rapid support.
Not sure which option fits your business?
Turbo Digital can assess your workflow, licensing needs and risk profile, then recommend the right platform (and handle the migration properly).
Request an Email Platform Review