Our I.T. department extensively tested BPOS. We are a company of 1500 employees, roughly 1B in annual revenue. We ran into roadblock after roadblock that Microsoft support either could not or would not resolve. We had a pretty good idea what we were getting into with a cloud based solution in terms of control and flexibility but Microsoft support was the final nail in the coffin - or lack of support, to be more accurate. Almost without exception, we were told 'fixed in the beta of Office 365'. This was back in late summer 2010. We were told Office 365 would be live Q1 2011. This is April and I see they are just now expanding the beta.
It may work for you. It didn't for us, and we went more than the extra mile with Microsoft to make it so. We are now evaluating another shared tenant Exchange solution and the support is great.
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