As a company grows and adds employees and workstations, there comes a time when it makes sense to have their own server for backups, website and email hosting, and virus/malware management.

A big decision point is whether to use an on-premise server that resides at your office or a cloud-hosted server that is in a data center somewhere else.

Both have their pros and cons and provide similar functions, so it can be hard to know whether or not you’re making the right decision for your company if you don’t know the key differences between the two.

At SchrankLABS we provide onsite and offsite backup solutions for small and medium sized businesses within 100-mile radius of Burlington, WI. Companies rely on us for managed IT services to keep systems maintained and running at peak efficiency and expert IT advice on the best hardware and software to meet their distinct needs.

We work with both cloud servers and on-premise servers, so we understand their strengths and weaknesses. In this article we explain the basics of why having a server benefits a company and the important differences between one that’s on-site or cloud-based.

Why Does My Company Need a Server?

Once a company reaches about 5 employees, it’s time to start thinking about getting a server. Many companies continue just adding on computer workstations for each new staff member, which can lead to difficulties in security, business continuity, and networking if they don’t have a central server acting as a hub.

While adding a server, whether on-premise or cloud-based, may seem like a big step, especially if you’re a small business, it’s actually one that could be vital to your continued success.

Technology enables small business growth.

According to SalesForce, many businesses underestimate the importance of technology to their sales and ongoing growth. It’s easy to get into the habit of just doing things manually and not understanding how having a central company server can speed up productivity and ensure all data on multiple devices is backed up and stored securely in one place.

Here are the key benefits of a company server:

• All-device backups & recovery
• Central file storage and sharing
• Hosting databases
• Website and email hosting
• Centralized anti-virus and malware administration
• Data security

Server Matchup: On-Premise vs Cloud

If you’re not certain which type of server would be right for your company, we have some pros and cons of each below. SchrankLABS also offers expert IT consulting in Burlington WI and beyond to help you make an informed and stress-free decision.

On-Premise Server Pros & Cons

An on-premise server is one that you purchase and house yourself at your office location. You or your trusted IT provider does the server administration and upkeep. Here are the main pros and cons of having a physical server on site.

Pros of an On-premise server:

• You have physical control of your backup
• No third-party has access to your critical data
• You don’t need an internet connection to access it
• Can be more cost effective over the long-term

Cons of an On-premise server:

• Larger upfront investment in hardware and infrastructure
• Needs a physical space & dedicated IT person
• Susceptible to data loss in the event of a disaster at your premises
• No uptime guarantees

Cloud-Hosted Server Pros & Cons

If you’re using a cloud-hosted server, it means you’re paying to use a server, either shared or dedicated, from a third-party cloud provider. You’ll typically pay them an annual or monthly fee for the server based upon functions and size.

Pros of a Cloud-hosted server:

• Lower upfront cost, no hardware to buy
• Easy to expand space as you grow
• Can be accessed from anywhere with an internet connection
• Most providers give uptime guarantees

Cons of a Cloud-hosted server:

• Requires reliable internet connection
• You’re dependent upon the reliability of the third-party provider
• Costs could be higher in the long-run as you add more storage
• Backups and recovery can take longer, depending upon internet speed

Which One is Right for Me?

Both types of servers can provide the critical security, connectivity, and network control you need as your business continues to grow. The one you choose will depend upon factors such as whether you like to keep complete control of your data, or whether you have a plan for restoration of your data in the event of a fire, flood, or other disaster.

An on-premise server is great for companies that don’t like the idea of having to go through a third-party to access their information. If you would rather have complete control over your server and already have another backup plan to keep your data safe if the physical server is damaged, then this is the best option for you.

If you prefer lower up-front costs and more of a “plug and play” interface, then a cloud-based option is going to be more attractive to you. It will also give you the opportunity to easily expand storage space as you need it without having to buy hardware.

Need Help Deciding Between a Cloud or Onsite Server?

You don’t have to make a decision this big alone. SchrankLABS has years of experience working with all types of companies and helping them choose the best server and technology to keep their business thriving.

Call us today at 262-347-3199 or set up an appointment online to speak with our team.