How much does a server cost for a small business?
If you are considering buying a server for your small business, you are probably at the point where you need additional resources and control that your regular hosting provider can’t offer. Although the idea of owning something may seem more attractive than leasing it (paying monthly to a hosting company), it does not mean it is the right choice for every business.
Owning a dedicated server is not only more expensive to get upfront, but is also more time consuming and expensive to maintain. To be able to run a dedicated server successfully on your own, you’ll have to make sure you have the following things in place:
An IT person or team that can help you set up and maintain the server.
A team member that can help you fix the server in case it gets damaged or broken.
The right environment to keep the server functioning effectively such as proper ventilation and dryness.
Protection and or backup in case of environmental issues such as hurricanes or flooding.
Each of the items in the list above will have a price tag. Let’s go over some of the costs associated with buying a server next.
Cost of Hardware
This figure may vary according to your bandwidth, storage, security, and speed needs. For instance, the more storage needed, the more expensive the hardware will be. The average price ranges around $3,000 to $5,000. This number can be higher or lower depending on your specific needs, but it gives you an idea of what you should be expecting when you walk inside the store (or when you make the purchase online, as you probably will). On the other hand, to lease a server, it may cost you as little as $59/month.
Some other things to keep in mind are upgrades. For instance, you may want to get a SSD instead of a SATA for higher performance. This is an upgrade that would cost you just an additional $10 per month when you lease a service, but it may range from a couple of hundred dollars to thousands if you buy it own your own. Let’s say it cost you around $500, then your bill may be almost $6k for just the hardware alone at this point.
Cost of Installation
Now that you have your server, is time to install it. You need an experienced IT person that knows about setting up servers to tackle this task. I’d not suggest it to attempt to watch a YouTube video and do this on your own.
The average cost for an IT professional is around $100 per hour. Considering that installing a server may take around 4–5 hours, we are talking about $400-$500. Again, this is all an estimate, not a hard total. Now we are at about $6,500 for hardware and installation alone.
When you lease a dedicated server, the physical set up is included, so it would take a bit less time for your IT person to set up a server.
Cost of Maintenance
As with anything in life, your server will need maintenance to run smoothly. This is true whether you buy or lease a dedicated server. For instance, at ServerPronto we lease dedicated server but the maintenance is not included. However, clients can always pay a fee for higher support needs.
The monthly maintenance fees will vary depending on the server you choose your website or application needs. You may need 1 hour per month of maintenance or 10 hours. This is one of the toughest costs to estimate without knowing your exact hardware and needs. If we go back to the $100 per hour cost for an IT person, the cost can be from $100 to thousands of dollar per month.
Cost of Repairing or Fixing Hardware
If you lease a dedicated server, the repairs are included in your hosting plan. However, if you buy your own server, you will absorb this cost. The final expense will depend on the cost of the hardware that got broken. Keep in mind that in case of natural disasters, you’ll have to make sure your hardware is safe against flooding or power issues. This is not a risk you would take when leasing a server.
In conclusion, getting your first server should be the product of research. Study your business, study your site, and determine what its basic requirements and characteristics are. Review your options and make decisions based on what you need to achieve your goals.
Chief Tech writer at ServerPronto. Helping businesses grow with useful tech information.
Originally published at https://www.serverpronto.com on April 16, 2019.
