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Hi there! I am the IT Manager for a medium size non profit and we just converted to Office 365. Overall, it's great but there is a lot of work involved in getting everyone's files and email ready for the move. I did keep my file server for scanning from local devices and to host our accounting files. Everything else went to the cloud. Exchange is SO much better than the pop account we had with Network Solutions. 50GB of space per user! Overall, very happy.
Office 365 is an excellent solution compared to traditional IMAP and POP email. It syncs up contacts and calendars across multiple devices unlike POP and IMAP Email. I highly recommend all organizations large and small use Exchange email over IMAP and POP. Furthermore, the Microsoft Office 365 Exchange email has redundancies built into the servers so multiple servers store your data.