Gartner Research

Office 365 E3 Total Cost of Ownership (TCO) Will Be Lower Than On-Premises for Small Organizations, Higher for Large Ones

Published: 14 August 2017

ID: G00332708

Analyst(s): Adam Preset , Federica Troni , Matthew Cain , Neil Rickard , Andrew Lerner , Garth Landers , Stephen White , Jeffrey Mann , Philip Dawson , Joe Mariano , Michael Silver , Steve Riley


Office 365 Enterprise E3 can be more than 23% less expensive than equivalent Microsoft on-premises software for midsize organizations. Economies of scale favor on-premises for larger organizations. I&O leaders managing cloud office initiatives should use this research to build their business case.

Table Of Contents


  • Cost Is Only One Component of a Complete Analysis
    • Findings
  • Model Details
    • On-Premises Environment
    • Office 365 Enterprise E3

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