Ten years ago, every business needed a server. Today, many small businesses can go entirely serverless. But not all. Here's how to decide.
When You Still Need an On-Premise Server
- Large file storage with fast local access (video production, CAD)
- Legacy software that won't run in the cloud
- Compliance requirements for local data storage
- Unreliable internet connection
When Cloud Makes More Sense
- Standard office work (email, documents, accounting)
- Remote or hybrid workforce
- Limited IT budget and expertise
- Need for automatic backups and disaster recovery
The Hybrid Approach
Most businesses today use a hybrid model: cloud services for email and collaboration, with either a small local server or NAS device for large files and backups.
Cost Comparison
On-premise server: $5,000-15,000 upfront, plus maintenance, electricity, and replacement every 5-7 years.
Cloud equivalent: $500-2,000/month, but includes maintenance, updates, backups, and scales with your needs.
Our Recommendation
For businesses under 20 employees without specialized software needs, cloud-first with Microsoft 365 or Google Workspace is usually the best choice. We can assess your specific needs and recommend the right solution.