Should You Replace Your Aging Server or Move to the Cloud?

QUICK SUMMARY

• If your server is getting older, it might be a good time to start thinking about whether your business should make a transition to the cloud.

• Moving to the cloud can simplify IT for small teams, but may not be practical for everyone. There’s no one-size-fits-all answer.

• If your business relies on software that isn’t available in the cloud, you might not be able to ditch your server.

• Another limiting factor is budget. It’s not always cheaper to switch to the cloud.

Most of the time, your server is probably “out of sight, out of mind.” Tucked away in a closet or cupboard, it quietly manages your files, applications, and network connections. Basically, your server keeps your business running smoothly — until it doesn’t.

Servers don’t last forever. As with any old machine, they start to show wear. Aging servers are more likely to slow down or even break down, leading to increased maintenance costs and potential downtime.

This means businesses eventually come to a crossroads: Invest in a new physical server or move to the cloud. The following questions can help you determine the best move for your business.

Is your server more than five years old?

Most server warranties expire after five years. Once the warranty expires, your server can become more expensive and difficult to maintain. 

An older server also brings a higher risk of unplanned downtime. When older hardware fails, it can take longer to find and replace parts. You could be looking at hours — or even days — without access to your business systems and data. 

If your server is getting along in years, make sure you have some type of reliable backup plan to minimize downtime, and start thinking about a replacement plan.

What software and services do you use every day?

Next, take a close look at the tools your team uses regularly. If a cloud version isn’t available for any of your core applications, you may not be able to ditch your server just yet. Unfortunately, many industry-specific software and legacy programs still require a physical server to work.

Even if you have cloud-friendly options for other parts of your business, such as email and document sharing, you can’t get rid of your server if you have even a single mission-critical tool there. If this is your situation, you’ll probably need to replace your server when the time comes.

How many people need to use these tools?

Team size definitely matters in the server vs. cloud discussion. Cloud services typically use a subscription model, where you pay for the number of licenses or seats you need. With a small team, moving to the cloud may be a cost-effective solution, but the cost of cloud services can increase significantly as you scale. If your team is larger, it may be more economical to continue using a physical server.

How much will your monthly costs be?

With cloud services, you’re essentially renting space in the cloud. Moving to the cloud means locking into a monthly subscription fee forever. On the other hand, a physical server has a higher upfront cost, but the monthly expenses are typically lower. Compare the short-term and long-term costs of both options, and see what makes the most sense for your business.

Is your business expanding or contracting?

Because team size plays such a key factor in this decision, think about whether your team is on the cusp of growth or if you anticipate downsizing. Cloud services are easily scalable, but remember, additional team members can increase your costs .

A new server might make more sense if your team is growing, but make sure you account for future needs — including storage, access controls, and software compatibility — so you don’t outgrow it too quickly.

Your Infrastructure, Your Call

Whether you decide to move to the cloud or replace your aging server with a brand new one is highly dependent on your business. The team at Grand Consulting helps clients make this decision all the time. We can talk you through your options, help you figure out what makes the most sense, and then help you get there.