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Exchange in-house vs hosted

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After our recent crash of Exchange and spending 2 days getting it all back up and running I am contemplating moving to a hosted exchange solution instead of upgrading from 2003 to 2013.

We have about 110 employee mailboxes and approx 20 resource mailboxes. We are a department of 3...myself the Manager, a System Admin and a Help Desk tech.

So our current environment is about 30 servers all ESX virtual spread across 3 hosts each running 256 GB of memory using a NetApp solution..

I need to know pros and cons from anyone who has either been in this situation or has done the migration. I am looking at a cost of 15K - 20K for the exchange upgrade with licenses, another 2K a year for mailbox email virus protection licenses, about $400 a year for our spam firewall maintenance and other security checks we put on our firewall. Not including labor...


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