What Is Microsoft Exchange Online?
Microsoft Exchange Online is a fully managed, enterprise-grade email solution available through Microsoft 365 and Office 365. It delivers cloud-based email along with integrated calendar and contacts services, accessible across desktops, mobile devices, and web browsers with real-time synchronization. Built-in security features such as anti-malware, anti-spam protection, encryption, and compliance tools help safeguard communications while maintaining administrative control.
Organizations can choose from a range of Exchange Online plans, including Exchange Online Plan 1 and Exchange Online Plan 2, based on their storage, compliance, and mailbox requirements. These plans eliminate the need for physical infrastructure and offer essential collaboration tools like shared calendars and global address lists. For businesses evaluating Exchange Online vs Exchange Server, Exchange Online offers a cloud-first approach that reduces on-premises maintenance while supporting hybrid work environments with greater agility. Whether comparing Exchange Online Plan 1 vs 2 or selecting the most suitable Microsoft Exchange Online plan for your business, the service provides flexible, scalable support for modern communication needs.
| Interested in Hosted Exchange 2016? Plans start at $4.46month/mailboxSee More | Exchange Online Plan 1 | Exchange Online Plan 2 |
|---|---|---|
| $4.00 user/monthBased on Annual CommitmentBuy Now | $8.00 user/monthBased on Annual CommitmentBuy Now | |
 |  |  |
| 24/7 End User Support via Phone, Chat, and Email | ||
| Mailbox storage for each user | 50 GB | 100 GB |
| Messages size supported upto | 150 MB | 150 MB |
| Focused Inbox Your inbox includes two tabs: Focused, for email you need to act on right away, and Other, for everything else. | ||
| Outlook support Users can connect supported versions of Outlook to Exchange Online, so they can use the rich client application they already know. | ||
| Web-based access For web-client access, Outlook on the web provides a premium browser-based experience that matches the look and feel of the full Outlook client. | ||
| Outlook App Get more done on your phone and tablet with the Outlook App for iOS and Android. | ||
| Inbox management Stay focused on the most important messages with Clutter, which applies machine learning to clean up your inbox and set up rules that match the way you work. | ||
| Document collaboration Save attachments directly to OneDrive for Business with just one click and share the link to the file-right from Outlook on the web. | ||
| Shared calendar and contacts Compare calendars to schedule meetings and access collaboration features, including shared calendars, groups, the global address list, external contacts, tasks, conference rooms, and delegation capabilities. | ||
| Third-party Apps for Outlook Spend less time switching between apps with an extension model that allows third-party web applications easy plug-in access for both Outlook and Outlook on the web. | ||
| Security Every mailbox is protected with premier anti-malware and anti-spam protection via Exchange Online Protection. | ||
| In-place Archive Keep your inbox clean by automatically moving old messages to an In-place Archive. | Up to 50 GB | Up to 1.5 TB |
| In-place Hold Use In-Place Hold to preserve deleted and edited mailbox items from users’ primary mailboxes and In-Place Archives. | ||
| Hosted voicemail Take advantage of hosted Unified Messaging services that provide call answering, a dial-in user interface, and company automated attendant capabilities. | ||
| Data loss prevention (DLP) Control sensitive business data with built-in DLP policies based on regulatory standards such as PII and PCI, which help to identify, monitor, and protect sensitive data through deep content analysis. | ||
| $4.00 user/monthBased on Annual CommitmentBuy Now | $8.00 user/monthBased on Annual CommitmentBuy Now |
Comparing Microsoft Exchange Online Plans
Apart from the standalone plan, Exchange Online Plan 1 is also included with Business Premium & Business Essentials. The storage space available is 50 GB per user. Outlook is offered on all web, mobile, and desktop-based interface. The features like inbox management, EOP, contact and calendar sharing are available.
Apart from the standalone plan, Exchange Online Plan 2 is also included with Enterprise E3 which comes with 100 GB mailbox storage per user. All the features of Plan 1 are included. In addition to that, Plan 2 offers advanced security and compliance features such as In-Place Hold, Data Loss Prevention (DLP), and hosted voicemail.
Exchange Online Plan 1 vs Plan 2: Key Differences
Mailbox Size and Archiving
Plan 1 includes a 50 GB mailbox per user. Plan 2 expands this to 100 GB and adds unlimited archiving, making it ideal for users with high-volume communication or long-term retention needs.
Cloud Voicemail and eDiscovery
Plan 2 supports hosted voicemail with automated attendants and dial-in functionality, and enables advanced eDiscovery tools. It also includes support for inactive mailboxes, useful for retaining data from former employees.
Security and Compliance
Microsoft Exchange Online Plan 2 includes advanced compliance capabilities like Data Loss Prevention (DLP), In-Place Hold, and Litigation Hold. These features are essential for organizations with regulatory or legal obligations and are not available in Plan 1.
Choosing the Right Plan
Plan 1 is cost-effective for standard email, while Plan 2 offers advanced compliance, larger storage, and more features. The choice depends on your regulatory and collaboration needs. Apps4Rent helps select and deploy the correct plan.
Who Should Choose Plan 1 vs Plan 2?
Choosing between Exchange Online Plan 1 and Plan 2 depends on your organization’s size, compliance needs, and how extensively you rely on email and collaboration tools.
Exchange Online Plan 1 is well suited for small to mid-sized businesses looking for a dependable and secure email solution without the need for advanced compliance features. It includes a 50 GB mailbox, Focused Inbox, shared calendars, and mobile access, offering a practical and affordable option for teams with standard communication and storage requirements. If your organization does not need features like litigation hold, cloud voicemail, or unlimited archiving, Microsoft Exchange Online Plan 1 delivers a straightforward and efficient experience.
Microsoft Exchange Online Plan 2 is a better fit for larger organizations or industries with strict compliance and data retention demands. It offers a 100 GB mailbox, unlimited archiving, In-Place Hold, advanced DLP features, and eDiscovery tools. Businesses that require hosted voicemail, unified messaging, or detailed audit and reporting capabilities will find Exchange Online Plan 2 more aligned with their needs.
When comparing Exchange Online Plan 1 vs 2, consider your current and future mailbox storage, regulatory obligations, and security expectations. Matching the right Exchange Online plan to your IT policies and budget ensures the solution supports both day-to-day operations and long-term goals.
Does Exchange Online Include Security and Compliance Tools?
Whether you choose Exchange Online Plan 1 or Plan 2, both come equipped with essential security and compliance features to protect sensitive data and meet regulatory obligations.
Key protections such as anti-malware, anti-spam filtering through Exchange Online Protection (EOP), email encryption, and threat detection are included by default. Microsoft Exchange Online Plan 1 and Plan 2 also support retention policies, legal holds, data loss prevention (DLP), and auditing controls to ensure data governance. With capabilities like mobile device management and remote wipe, both Exchange Online plans help organizations maintain control over email environments.
Why Buy Exchange Online from Apps4Rent?
With over 20 years of Microsoft Exchange hosting experience, Apps4Rent ensures smooth, no-downtime migrations to Exchange Online Plan 1 or Plan 2. Our fully managed services include setup, monitoring, and 24/7 support from Microsoft-certified experts.
We support all Exchange Online plans across shared, dedicated, and Azure deployments, offering flexible options to scale with your needs. Whether you’re comparing Exchange Online Plan 1 vs 2 or need help selecting the right solution, we simplify the process.
Our U.S.-based data centers provide robust security, daily backups, and 99.9%+ uptime. With transparent pricing, no setup fees, and free migration on annual plans, Apps4Rent makes moving to Microsoft Exchange Online Plan 1 or Plan 2 easy and cost-effective.
Common Features Across All Exchange Online Plans
Message Policy, Compliance, and Retention Features
Message Policy, Compliance, and Retention Features Both Plan 1 and Plan 2 support customizable messaging policies and retention rules. This provides a consistent foundation to meet audit, regulatory, and data lifecycle management requirements.
Mailbox Storage Limits and Archiving Options
Mailbox storage scales according to the selected plan, but both Exchange Online Plan 1 and Plan 2 include automatic archiving that extends mailbox capacity and reduces manual cleanups.
Reporting, Auditing & Troubleshooting Tools
All Exchange Online plans offer detailed logging, tracking, and mailbox diagnostics that help administrators respond quickly to user issues. This shared visibility is key whether you're evaluating Exchange Online Plan 1 vs 2 or managing a mixed environment.
Data Loss Prevention (DLP) and Security Capabilities
Data Loss Prevention (DLP) and Security Capabilities All plans include baseline threat protection (EOP) and security features like TLS encryption. These safeguards ensure secure access and reliable email delivery for every mailbox.
Mobile Access and Device Management
Cross-device sync through the Outlook app or any supported email client ensures consistent access to messages, calendars, and contacts. Security policies can be enforced across devices to manage compliance without restricting mobility.
Core Collaboration Tools
All plans provide shared calendars, global address lists, and contact management. These essential features enable efficient scheduling and communication across the entire organization.
FAQ - Your questions? We got answers!
What is Office Exchange Online Plan 1?
Office Exchange Online Plan 1 is a cloud-based email service with 50 GB mailbox storage per user. It includes essential tools like Outlook web and mobile access, shared calendars, Focused Inbox, and built-in anti-spam and malware protection. Ideal for businesses with standard email needs and basic compliance.
Can I upgrade from Exchange Online Plan 1 to Plan 2 later?
Yes, Exchange Online allows easy upgrades. Businesses can start with Plan 1 and move to Plan 2 as storage or compliance needs increase, no service disruption involved.
How much mailbox storage do I get with each plan?
Plan 1 includes 50 GB of mailbox storage per user. Plan 2 increases this to 100 GB and adds unlimited archive storage, supporting long-term retention needs.
How exactly will Apps4Rent help me with these plans?
Apps4Rent will assist you in getting started with Exchange Services. Our team of Exchange experts will help you in configuring various handheld devices for synchronizing your Mails, Calendars, Contacts, and more. We will also take care of configuring the rules in Outlook and Outlook Wed Application. As a true end-to-end service, we will migrate your current mailboxes to Office 365 and configure DNS records for activating and using Office 365 services.
Can Exchange be connected to my smartphones and tablets to receive email?
Yes. Exchange features the Exchange ActiveSync, the world-wide standard for mobile email syncing. Besides, Exchange also provides a great Outlook Web App experience that works across any device that support web browsers, so you can easily access your email through your mobile devices.
How can I retain information for a period of time in Exchange?
Time-based In-Place Hold enables you to retain email data immutably for a specified time period. This helps organizations in preservation of data that meets internal and external regulatory needs.
What is an Exchange Plan 2 license?
Exchange Online Plan 2 builds on Plan 1, offering 100 GB mailbox storage, unlimited archiving with In-Place Archive, hosted voicemail, and advanced compliance features like Data Loss Prevention (DLP). Best suited for businesses requiring enhanced security and larger mailbox capacity.
Does Exchange Online include spam and malware protection?
Absolutely. All Exchange Online plans include Exchange Online Protection (EOP), which provides enterprise-grade spam filtering and malware defense to keep mailboxes secure.
IS EXCHANGE ONLINE PLAN 2 WORTH IT FOR SMALL BUSINESSES?
It depends. For basic email use, Plan 1 is often sufficient and cost-effective. However, small businesses with growing compliance needs or larger storage requirements may benefit from choosing or upgrading to Plan 2.
I am using Exchange Online as a standalone plan, is it possible to switch to other Office 365 plans?
Yes. You can upgrade your account to any of the Office 365 Enterprise plans, which are in the same service family as Exchange Online standalone plans. However, for switching to a different service family like Office 365 Business Essentials or Office 365 Business Premium plans, you should first cancel your Exchange Online account and then sign up for a different account.
Does Exchange offer protection for the sensitive information on mobile devices?
Yes. Exchange offers the ability to remotely wipe the devices that are connected with Exchange ActiveSync. For businesses that do not want any data stored outside of their organization, the Outlook Web App web browser access without storing any organizational data on the mobile device.
Submit Your Requirements
