Ten years ago, managing a stack of messaging servers was the only option ESPs had to run an effective email-at-scale business. Maintaining on-premises messaging infrastructure gives companies incredible power, flexibility and a framework to build highly customized message streams and communications. However, this customization comes with a high cost in both dollars and man-hours.

Imagine if you could have the same performance, stability, and deliverability of the world’s best on-premises email platform, but managed and serviced by the company that built it with all of the same cross-channel messaging sophistication in the cloud? What could you do with the additional OPEX and head count? How could you redeploy these resources to improve your product, go-tomarket strategy and fiscal outlook? What might the cost savings look like?

Our analysis of the experience of real-world businesses shows that a standalone business with a moderate volume of 750 million messages per year can save 40% by migrating from an on-premises email infrastructure to the cloud. How much could an ESP—a business that sends orders of magnitude more volume and responsible for maintaining far more MTAs—save? The implication for an ESP is clear: moving to the cloud can improve margins and frees up resources that can be better spent on strategic differentiation.