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Hosted Exchange is a version of Microsoft Exchange Server that is delivered and accessed from a remote server or through a cloud service provider. It is a Microsoft Corporation proprietary product that provides the same and enhanced functionality of a standard exchange server, but with a different delivery model.
Hosted Exchange is also known as Exchange Online.
Hosted Exchange is typically installed, configured and hosted on a service provider platform. The end user accesses it through a secure network or private VPN connection. As in SaaS/cloud-based offerings, Hosted Exchange can be accessed over the Internet. The entire processing of the application is performed on servers on the provider's end.
The user can configure email addresses and manage the inbox, contacts and calendar. It is also provided with default security and malware protection. The licensing for Hosted Exchange requires end users or the organization has to pay monthly subscription fees to use the services.