Cloud Services Terms and Concepts

Term Description
On-premises Users Users whose mailboxes reside in the on-premises Exchange environment.
Cloud Users Users whose mailboxes reside in the cloud, such as Microsoft Office 365 users.
Hybrid environment A Microsoft-specific term defined in https://support.office.com/en-us/article/exchange-online-setup-with-an-exchange-hybrid-deployment-87c4eac6-f7fa-42c5-b449-efb1311f9fe4.
Exchange envelope journaling A Microsoft-specific term defined in https://technet.microsoft.com/en-us/library/aa998649(v=exchg.150).aspx.