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

College restaurant honoured with top culinary award from prestigious chefs’ guild Karen Lilley Front Of House Lecturer David McKown David Lyon Scholars Manager And Blackburn College Principal Dr Fazal Dad

College restaurant honoured with top culinary award from prestigious chefs’ guild

10 Jun 2025

2

Cosmetic manufacturer lets new unit on Frontier Park, Burnley Badgequo have agreed to let the site on Frontier Park

Cosmetic manufacturer lets new unit on Frontier Park, Burnley

10 Jun 2025

3

SQ Digital celebrates 25 years and enters new era with CEO appointment Kamal Essa

SQ Digital celebrates 25 years and enters new era with CEO appointment

09 Jun 2025

4

New chair appointed to Atlas BFW Management Graham Cowley

New chair appointed to Atlas BFW Management

09 Jun 2025

5

Napthens makes key appointments to further growth strategy of newly appointed managing director Napthens appointments Jayna Mistry, Onyeka-Obedi and Rebecca Rhodes

Napthens makes key appointments to further growth strategy of newly appointed managing director

09 Jun 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
Sub36 Social1200pxandi Lewis
Networking
11 Jun 2025

Sub36 Networking

Mytton Fold Hotel , Blackburn , BB6 8AB

09:30 - 11:00

Lancashire Net Zero Carbon Conference
Net Zero Carbon Social 1200pxtrident 2
Networking
18 Jun 2025

Lancashire Net Zero Carbon Conference

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

08:30 - 13:00

LBV123 July/August Launch Event
Lancashire Business View magazine launch
Networking
16 Jul 2025

LBV123 July/August Launch Event

Burnley College Industry Hub, Burnley, BB120AN

08:30 - 10:30

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

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

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

Preston Freelancer Meet-Up
LBV Hub Networking
12 Jun 2025 - 12 Jun 2025

Preston Freelancer Meet-Up

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

The Business Network Central & East Lancashire
LBV Hub Networking
12 Jun 2025 - 12 Jun 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

Midnight Oil: The Entrepreneur’s Journey: Scaling Strategies with Brad Waldron
BU-June-Event-BRAD-1.jpg.jpg
LBV Hub Networking
18 Jun 2025 - 18 Jun 2025

Midnight Oil: The Entrepreneur’s Journey: Scaling Strategies with Brad Waldron

Blackpool Football Club, Bloomfield Rd, Seasiders Way, Blackpool, FY1 6JJ

08:30 - 11:30

Chamber Business Lunch – June
Chamber Logo1.png.png
LBV Hub Networking
20 Jun 2025 - 20 Jun 2025

Chamber Business Lunch – June

Lancaster House Hotel, Bailrigg, Lancaster, LA1 4GL

11:00 - 13:30

90 day Business Planning Workshop
LBV Event Header.png.png
LBV Hub Seminars
20 Jun 2025 - 20 Jun 2025

90 day Business Planning Workshop

Bolton Arena, Arena Approach, Horwich, BL6 6LB

09:00 - 16:30

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 LBV122 Online Graphic
Subscribe now

Weekly news bulletin