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

Villa at Wrea Green bought for £3.6m by Haythornthwaite family The Villa Wrea Green courtesy of The Villa Wrea Green

Villa at Wrea Green bought for £3.6m by Haythornthwaite family

16 Sep 2025

2

Fourth Lancashire Bodycare store to shut Nick Holloway of administrators Interpath

Fourth Lancashire Bodycare store to shut

16 Sep 2025

3

Family business relocates in Blackburn Tristar relocation

Family business relocates in Blackburn

16 Sep 2025

4

Taste Lancashire Producer Awards 2026 open for applications Taste Lancashire Producers awards

Taste Lancashire Producer Awards 2026 open for applications

15 Sep 2025

5

Stuart Buckley appointed head of sales and account management at Netcentrix Stuart Buckley

Stuart Buckley appointed head of sales and account management at Netcentrix

15 Sep 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

LBV124 September/October Launch Event
MBP Arc Cinema Preston Opening 205
Networking
18 Sep 2025

LBV124 September/October Launch Event

The Arc Cinema, Preston, PR1 2BL

08:30 - 10:30

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

Business Breakfast Networking Event
business workshop photo.png.png
LBV Hub Networking
17 Sep 2025 - 17 Sep 2025

Business Breakfast Networking Event

Media Factory, University of Lancashire, Preston, PR1 2HE

08:00 - 10:30

The Business Network Central & East Lancashire
LBV Hub Networking
17 Sep 2025 - 17 Sep 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

Ladies Lunch
Lancs-cham-logo.jpg.jpg
LBV Hub Networking
18 Sep 2025 - 18 Sep 2025

Ladies Lunch

Lancaster Golf Club, Lancaster, LA2 0AJ

12:00 - 16:00

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

Your Business, Your Region: Making sense of devolution and Local Government Reorganisation
Chorley Council breakfast event new
LBV Hub Networking
23 Sep 2025 - 23 Sep 2025

Your Business, Your Region: Making sense of devolution and Local Government Reorganisation

Worden Hall, Leyland, PR25 3DH

08:00 - 11:00

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

The Marketing Metrics That Matter – Sept 25
Metris 25.09.png.png
LBV Hub Seminars
25 Sep 2025 - 25 Sep 2025

The Marketing Metrics That Matter – Sept 25

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

09:00 - 11:00

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 LBV124 Online Graphic
Subscribe now

Weekly news bulletin