Why on-site servers cost more than you think

By Cardium Outsourcing Ltd

17 Jun 2022

dreamstime_s_53658667.jpg

The alternative to on-site servers for small businesses may cost less than the electricity needed to run one.

Even in this age of online business apps and cloud computing, small businesses up and down the country are still running on-site Windows servers.  Some business software isn’t yet cloud-based and still relies on a local server to share data and documents.

The alternative, using cloud environments like Hosted Remote Desktops aka Desktop as a Service or DaaS, is an easy and obvious way to move these key lines of business applications to the cloud and enjoy all the benefits and freedoms that brings.  Yet, many small businesses look at the cost of hosted desktops and argue that they “could buy our own server for that”. 

So, let’s bust that myth.

Take the example of a small business wanting to run their accounting software on a local server to share the data between the 5 people in their accounts department.  Running that on a Hosted Desktop would cost about £30 per user per month, or just under £1,800 per year. 

The argument goes that after 2 or 3 years the business could have bought their own server and hence save money.  Not true.

A typical server aimed at small businesses will consume about 850W of electricity, and at current energy prices the business might be paying £0.35 per kWh.

Some quick maths:

0.85kW x 24 hours x 365 days x £0.35

= a staggering £2,606.10 a year.  Just for the electricity.  

Already £800 more than the alternative hosted desktop solution.

Add on to that the cost of Windows server licences.   There are different editions of Windows Server but the most likely edition a small business will require is Windows Server Standard.   There are various ways to licence Windows Server Standard, as an example Windows Server 2022 16 Core License Pack with 5 Windows CALs is listed at £1,400 on the Microsoft Store.

You then need to consider IT server support at an approximate £100 a month, plus antivirus software and a good backup solution and you’ll probably add another £50 to £100 a month to your server costs.   Of course, we haven’t yet included the price and setup costs of the server itself.   Budget £5k - £7k depending on spec.   Suddenly the idea of running an on-premise server seems slightly extravagant.

If you’ve not encountered Hosted Desktops before they enable businesses to run any Windows desktop applications on secure, dedicated, cloud-based virtual machines that can be accessed from anywhere in the world over an internet connection, making home working and remote working easy.   Hosted Desktops can also be accessed from non-Windows devices so our business running Sage 50 as an example can now enable its team to work from home on their Apple Macs if they choose.

Your Office Anywhere is a Burnley-based company and have been helping small business to run any Windows business application in virtualised environments for over 15 years and would be happy to advise Lancashire business owners looking for ways to make their IT work more flexibly without increasing costs.

Latest news

1

Inspired plc acquired by HGGC Inspired logo

Inspired plc acquired by HGGC

19 Aug 2025

2

Lancashire uniform provider acquired in £12.5m deal Trutex images

Lancashire uniform provider acquired in £12.5m deal

19 Aug 2025

3

Burnley aircraft firm sees profits soar Safran Nacelles

Burnley aircraft firm sees profits soar

19 Aug 2025

4

Lancashire marina bought by Aquavista Fettlers Wharf Marina

Lancashire marina bought by Aquavista

18 Aug 2025

5

Work starts on new business units at Enterprise Zone Danny Pinkus Cllr Mark Smith and Robert Pinkus at Phase Two Of Enterprise Court

Work starts on new business units at Enterprise Zone

15 Aug 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Sub36 Networking - Follow the signs
Sub36 Deaf Village Social1200
Networking
17 Sep 2025

Sub36 Networking - Follow the signs

The Deaf Village, Blackburn, BB2 5EN

10:00 - 12:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

The Business Network Central & East Lancashire
LBV Header (24).png.png
LBV Hub Networking
21 Aug 2025 - 21 Aug 2025

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

Morecambe Bay Walk
Walk.jpg.jpg
LBV Hub Awards
30 Aug 2025 - 30 Aug 2025

Morecambe Bay Walk

Arnside, CARNFORTH, LA5

09:30 - 14:00

Tri-Site Survey Equipment Showcase
Linkedin Cover.jpg.jpg
LBV Hub Seminars
03 Sep 2025 - 03 Sep 2025

Tri-Site Survey Equipment Showcase

Harewood House , Leeds, LS17 9LG

09:30 - 16:00

Longridge Soap Box Derby
Screenshot 2025-06-10 090035.png.png
LBV Hub Fundraisers
14 Sep 2025 - 14 Sep 2025

Longridge Soap Box Derby

Berry Lane, Longridge, PR3 3WH

10:00 - 16:30

Preston Tech Connection - The Ultimate Tech Quiz!
Preston Tech Connection Sept 25.png.png
LBV Hub Networking
16 Sep 2025 - 16 Sep 2025

Preston Tech Connection - The Ultimate Tech Quiz!

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:00

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

Preston Freelancer Meet-Up: September
Sept Freelancer (1).png.png
LBV Hub Networking
23 Sep 2025 - 23 Sep 2025

Preston Freelancer Meet-Up: September

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Speed Networking with BNI
2.png.png
LBV Hub Networking
24 Sep 2025 - 24 Sep 2025

Speed Networking with BNI

Chorley Football Club, Chorley, PR7 3DU

16:00 - 19:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV 123 Online Graphic
Subscribe now

Weekly news bulletin