Choosing between on-premise and cloud-based email services is a common decision for Canadian small and mid-sized businesses. Simply put, on-premise email means your company hosts and manages its own email servers within your physical office or data centre. Cloud email, such as Microsoft 365, means your email is hosted by a third-party provider and accessed over the internet. Each option affects how your business handles email security, reliability, and costs.
Why this matters for Canadian SMBs
Email is critical for daily operations, customer communication, and internal collaboration. If your email system goes down or suffers data loss, it can disrupt work, damage your reputation, and even lead to compliance issues—especially with Canadian privacy expectations like PIPEDA. Cyber risks such as phishing and ransomware attacks also target email systems, so how you manage your email impacts your overall cybersecurity posture.
On-premise email gives you direct control over your data and infrastructure, which some businesses prefer for compliance or customization reasons. However, it requires dedicated IT staff or expertise to maintain servers, apply security patches, and ensure backups. Cloud email shifts these responsibilities to the provider, offering built-in redundancy, automatic updates, and easier remote access. This can improve uptime and reduce the risk of data loss without needing a large IT team.
A typical scenario
Consider a 50-person Canadian consulting firm using on-premise email. Their IT staff spends significant time managing the email server, applying updates, and troubleshooting outages. When a hardware failure occurs, the downtime lasts several hours, impacting client communication and project deadlines. After consulting with a managed IT provider, they migrate to Microsoft 365 cloud email. Now, their email is accessible from anywhere, automatically backed up, and protected by enterprise-grade security features. The IT team can focus on strategic projects rather than routine maintenance, improving overall productivity.
Checklist: What to consider and ask
- Data residency: Where will your email data be stored? Confirm that cloud providers keep data within Canada or compliant jurisdictions if this matters for your industry.
- Security features: Does the service include multi-factor authentication, spam filtering, and encryption? How are security updates handled?
- Backup and recovery: What is the backup schedule? How quickly can data be restored after accidental deletion or cyberattack?
- Uptime guarantees: What service level agreements (SLAs) ensure email availability? What compensation is offered for downtime?
- Access and mobility: Can employees securely access email from multiple devices and locations?
- IT support: What support options are available? Will your IT provider manage the cloud email service or your on-premise servers?
- Costs: Compare upfront and ongoing expenses, including hardware, licensing, support, and potential downtime costs.
Regularly review your current email setup to check access permissions, verify backup locations, and ensure password policies are enforced.
Next steps
Deciding between on-premise and cloud email depends on your business's specific needs, resources, and risk tolerance. Speaking with a trusted managed IT provider or IT advisor can help clarify which option aligns best with your operational goals and compliance requirements. They can also assist with migration planning, security assessments, and ongoing management to keep your email running smoothly and securely.