What is the difference from setting up your own email server vs using a 3rd party for example Godaddy?

I'm assuming what would happen would be instead of having an email johnsmith@godaddy,com it would change to your companies name so example [email protected] So your email address will technically change but really that's it. I believe that answers your question

Errr, all wrong. Godaddy is (I am sure) like gmail. You can use your own domain, and use Godaddy's infrastructure to access your mail via web, pop or imap. You get some things (24x7 support, world wide access, etc.) but you lose some things: Most of them don't archive anything. For a business under Sarbanes-Oaxley, this is going to be a problem. Most don't support mailing list support. They just have mail aliases. Its hard to restore. It doesn't log your mail easily for tracking. You might have to stand up your own local mail smtp for applications since you can't authenticate it or whitelist your server. Generally, a webmaster doesn't know jack about email. I've done both, you need some expertise to bring it in house and without good networking people, an understanding that mail can never be 24x7, 5 9s.

Update... There is no such thing as using a 3rd Party Email "managing" Hosting provider... GoDaddy is a Hosting Company... this means they HOST services, such as email server. GoDaddy will NOT support and maintain it... only the "Networking" aspect of it. Host means your Server (computer) will be hosted by GoDaddy (network) It is an Administrators job to Maintain and manage their Services regardless where (location) it's being hosted. This is because YOU know when your hiring new users, firing old users, this needs to be forward here, or there... Yes, GoDaddy can and will charge you for anything they do on your server... at rates of $150/hr. What you do is hire a WebMaster... have GoDaddy host it... and WebMaster manage it... and there is no difference from an email server being hosted outside of your companies network.