RDI Intuitive Technical Network Engineer

How Much Does a Server Cost for a Small Business

Has your business thrived to be large enough for servers? Congrats! Learning about their cost and acquiring a server for your data could be the best decision you can make for your business. Servers run specialized operating systems designed to support several users. Furthermore, technology is engineered to support multi-user applications like messaging, print servers, and emails. Customer relationship software, database software, resource planning software, and schedule programs are also run by the same servers.

Stiff competition is a common experience with small businesses. With this, you may utilize the server’s technology to lower expenses and improve services offered by one small business at the same time. Without a doubt, it’s overwhelming to get such an important feature. The right use of technology will bring the server cost down.

Nonetheless, to ensure that one makes the right decision in terms of cost and maintenance, this guide will provide you with the basic principles of the technology. As a result, you can choose the class of servers at the cost that best suits the needs of your business. Read below to learn the correct way of acquiring servers.

Leasing vs. Owning a Server

You are most likely looking for a cost-effective IT solution that can best fit into your budget. Apart from the server cost, you should consider the quality of the data server to ensure you are getting the best level of performance. Technology evolution is a major factor that can impact the decision of acquiring through buying or leasing. Both methods have their pros and cons, but the right choice depends on your individual business needs. Here are some of the advantages and disadvantages of either buying or renting servers.

The Pros of Buying a Server

  1. Most suitable server

In purchasing a new server, you get what you need since you have more flexibility and options. You won’t have to give the details of your business when asking for the price of the server, such as financial statistics. Normally, if you choose to rent, you have to provide several additional details to a service provider.

  1. Personalized maintenance

Since you are the owner of the server, you organize the upkeep schedule. However, this may differ when you rely on programs managed by other companies. Maintenance is done according to the plans of the owners. Specifications of upkeep services from other people may turn out to be costly through disrupting your plans.

  1. Long term expenses are lowered

Procurement is a one-time expense by paying wholesome amounts for once. However, with lease plans, you will have installment payments. Monthly or yearly rates may be agreed upon, and within a range of several years, it could cost more than buying the server outright.

  1. Tax benefits

The buying method may become advantageous to reduce tax returns. Therefore, you benefit from reduced revenue tariffs. However, when you lease, only the rental fee is deducted from the tax fee.

The Cons of Buying a Server

  1. Servers are costly to buy

You will need a significant sum at once to buy the server equipment. This can be a difficult decision for small enterprises. Mostly, you could be forced to get loans or use money set for other vital projects like marketing and other plans necessary in the growth of your business.

  1. Sticking with outdated cloud equipment

Technology advancement is becoming the order of each day. The latest and improved devices are being introduced. However, after spending a huge amount on buying the serverequipment, it may be difficult to procure another advanced one.

  1. Risk having faulty server equipment

Unpredictable issues such as faulty systems and security problems are posed by server technology devices. You may have no idea how to handle the situation when the server equipment breaks down, and the warrant has expired. This may require hiring an additional staff member that can help when these situations arise.

The Advantages of Leasing a Server

  1. Accessing the latest hardware

Computer devices or technology are rapidly outdated. With a better or advanced server on the market, you can freely move to the new one when your contract comes to an end.

  1. Predictable expenses

The installment fees are fixed, and you know how much you need to continue using the devices. With the predetermined installment line terms, you will efficiently budget for the costs. Also, the lease to buy plans may offer more value to the lease method.

  1. No capital is required

Most small enterprises struggle with money inflow. Thus, garnering funds to procure the server is normally difficult. Nevertheless, with a lease, you only need the cost-effective monthly installments.

  1. Outdo competitors

Through leasing, you can leverage any advanced technology, which is unaffordable through buying methods. Also, with the latest plans, you can manage to keep up with the stiff competition with no need for draining financial resources.

The Disadvantages of Leasing a Server

  1. Costly long term investments

The interest rates paid can accumulate. This can be a costly practice for small enterprises.

  1. Loss when you no longer need the server equipment

You will have to honor your contract by paying all installments even when you close a business or find other options. The fees are paid until the end of the contract.

Bottom Line

The decision to lease or procure is yours to make. Find out your needs and financial plans so you can make the right choice. Consider the benefits, cost, or downsizes and compare them to your business before making a decision.

Contact Us For Help Making a Decision

Initial Price for a Server of Small Businesses

The first process of procuring a server is researching to know the type of cloud data storage equipment that you want. Cloud, VPS, and dedicated servers are the available options to choose from. Therefore, research to know the server that will best suit your business.

Mostly small businesses host two or more small sites on a server. In such a situation, the VPS could be the right cloud device. The small servers range from $51-$75 per month. However, if you want a server with several loads for businesses with several sites, consider the dedicated types, which cost around $150-$375 a month.

The next step after having the right choice of the server is the installation and configuration of the software. Hire professional IT technicians to help with the fixing tasks like RDI Intuitive Technical. It is usually a minimum of 4 hours(half day) to fix and configure the server equipment, and it costs on average $165 an hour.

Therefore, in total, the initial setup process will require a minimum service cost of nearly $660. Hosting will take $50-$200 while setup and configuration will use around $660. This last sentence sounds a bit repetitive.

Recurring Budget for a Server of a Small Business

Apart from the monthly hosting service expenses, you also have management costs to budget for. You will require around three to five hours of maintenance services each month. The upkeep is important to ensure the software is efficiently working. Thus, the monthly fee for monitoring and upkeep of the server is around $150-$300.

New Server Cost

Are you searching for a server today for data storage? The first and primary element to consider is the price of the software and how much it will cost you to service. Every business is unique and has its needs. Therefore, the type or model of the server may vary with the preference of different enterprises. However, the new server cost does not end with buying the device. You also have to factor in regular upkeep tasks. Here are some of the expenses to expect.

  1. Hardware cost

The figure of the server will vary with several factors like security, speed needs, bandwidth, and storage. For example, the more complex the hardware, the more expensive it is to acquire it and more storage space required. Average prices for hardware are from around $3,000-$5,000. Depending on your needs, the figures may decrease. With these numbers in mind, you will have a clue about the server cost when walking into a store to buy a server. However, when you want to acquire an upgrade, it will cost you more. To change from SATA to SSD, it will require at least an additional $500 for the updates.

  1. Installation costs

After acquiring the server equipment, fixing it is the next step. The task requires help from a professional technician. The IT expert must be highly experienced in determining the best point to install the device considering the security measures. However, you have to know that the services come with a handy sum of money. On average, IT experts are paid $165hourly to help install the server. The fixing process can take nearly four to five hours, which translates to a figure of $660-$825.

  1. Cost of maintaining the server

For durability and effective performance, you have to conduct maintenance services. In spite of the plan used in acquiring either buying or leasing the server, maintenance must be done. Maintenance procedures can differ with models of the equipment offering the cloud services, application, and website needs. However, the upkeep process requires from 1-10 hours monthly. This can be difficult to approximate when you don’t know the needs or type of hardware. However, you may consider the average fee of $150hourly. Therefore, the upkeep fee can range from $150-$1,500per month.

  1. Repairing and fixing costs for the hardware

The repair expenses depend on a broken or damaged part. However, before you spend on repairs, consider if the warrant is still active. Safeguarding your hardware from natural calamities like floods or electricity problems could help to prevent regular breaking. However, when you rent the server, the fees to fix damaged hardware are included in the monthly installments.


Presently, having servers, even for small businesses, is an integral solution to support development plans. With the hardware, you will host sites, servers, and much more. However, you must know how much it will cost to acquire the server equipment. The cost of setting up, monitoring, maintaining, and repairing the hardware used to store the data is another vital aspect to be cognisant of. We hope this has helped you obtain the critical information about the expenses involved in acquiring a server for your small business, also check out our article on virtual CIOs  and network support engineer to see how they could help benefit your business.

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