Cost of Setting Up A Server for Small Business

axle-networks-how-much-does-a-server-cost-for-a-small-business

It can be hard for small businesses to find their way around the digital ecosystem. To balance growth with limited resources, smart investments must be made that improve security and efficiency.

The simple server is an important piece of technology that is often overlooked.

Setting up a server opens up a world of benefits, such as centralised data, remote access, better security, and more efficient workflows. How much does this server dream cost, though? This article will break down all of those costs into clear steps that will help you make this important investment.

Assessing Small Business Server Needs

A company’s data and network requirements increase in line with its expansion. A server unifies a company’s computers and data into a single network, which is essential for bigger businesses for reasons like security, accessibility, speed, and more.

However, a small business may not always have an easy time deciding to get a server. The expense of a server and its potential return on investment are something else you may be thinking about. Knowing how big the operations are, how many people are using them, and what kind of data is being handled is the first step in making an informed decision about server needs.

Keep this in mind: you should know your needs before purchasing a server. Read our other article on the topic to find out more about what is a servers in computer networks.

Cost Components of Setting Up a Server for Small Businesses

Setting up a server involves several components, each contributing to the overall cost. Let’s break down these components to gain a comprehensive understanding.

1. Hardware Costs

The hardware forms the physical infrastructure of the server and is a significant contributor to the overall expense. Servermania reports that server hardware typically costs between $1,000 and $4,000. The price might be more or less than this average range based on the items you purchase, but it includes everything you need to set up your servers successfully. These pieces of hardware will determine the total cost of your server:

  • Server type: Tower servers are budget-friendly, while rack-mounted servers offer greater scalability and power.
  • Processing power: More users and demanding applications require stronger CPUs.
  • Memory (RAM): Adequate RAM ensures smooth multitasking and application performance.
  • Storage: Choose hard disk drives (HDDs) for large data volumes or solid-state drives (SSDs) for improved speed and reliability.
  • Networking: Consider network cards and switches to connect users and other devices.

2. Installation and Configuration Costs

There will be further costs associated with the installation and configuration phases after the software and hardware components have been acquired. At this stage, the IT staff must install and configure the essential components, including the servers and network infrastructure. The IT department’s time and possibly expensive configuration software or tools might be involved in this process. The total cost of installation and configuration might also include the cost of any staff training or support services that may be required.

According to RDIT, the cost of hiring IT professionals to set up a server can reach $165/hour. The installation and configuration process can take around 4 to 5 hours, which means it will cost around $660 to $825.

axle-networks-cost-of-setting-up-a-server-for-small-business

Cost of setting up a server for small business (Image by Help Desk Geek)

3. Maintenance and Support Costs

To keep servers running smoothly and fix any problems that may emerge, regular maintenance and support are necessary.

Services for monitoring and troubleshooting, in addition to routine software updates and patches, may be a part of this. Budgeting for ongoing expenses like maintenance and support is important for keeping the server system running smoothly. The amount of budget to do maintenance will depend on factors like the complexity of the server setup and the level of support needed.

4. Repairing and fixing costs for the hardware

Repairing and fixing costs for the hardware are additional expenses to consider when budgeting for a server system. In the event of hardware failure or damage, it may be necessary to replace or repair components such as hard drives, memory, or network cards.

The cost of these repairs can vary greatly depending on the specific hardware being used and the IT experts required for the repairs. An example for hardware repair cost would be the difference between the cost of a broken CPU (up to $1,000) and a broken SSD (100-$150) or RAM (100-$150). After that, you’ll need to factor in the hourly rate of $165 for IT specialists to fix everything.

How Much Does a Server Cost for 1,000 Users?

A server’s cost for a thousand users is actually difficult to calculate because there are a lot of variables to consider, most notably your usage scenario. In response, some IT specialists state that the monthly cost of a server for the same 1000 users can vary from $5 to $10,000.

Factors such as the type of server, storage capacity, and level of security required can greatly impact the cost. Additionally, ongoing maintenance and software licensing fees should also be taken into account when calculating the overall cost of a server for 1,000 users.

So to estimate the cost per 1,000 users, consider the following factors:

  • Hardware Scaling:
    • The server’s capacity to handle concurrent users and data processing demands.
    • Upgrading hardware components to accommodate additional users may be necessary.
  • Licencing Costs:
    • Software licensing fees often scale with the number of users.
    • Understand the licensing models of both operating systems and applications to calculate per-user costs accurately.
  • Maintenance and Support Scaling:
    • As the user base grows, so does the need for enhanced maintenance and support services.
    • Factor in increased support costs to ensure the server can effectively cater to the expanding user pool.

It is important to consider the potential impact on maintenance and support services as the user base grows. As more users access the server, there may be a need for additional resources and personnel to handle any issues or provide timely support. This should be taken into account when planning for scalability to ensure a smooth and efficient user experience.

There are also various kinds of servers, and their prices may vary. For additional information, check out our article on the different types of servers in the network.

What is Rackspace (Image by Rackspace Developer Center).

Conclusion

Finally, every aspect of hardware, installation, maintenance, and repair cost must be considered when estimating how much it will cost to set up a server for a small company. Because server repairs and maintenance can add up over time, it’s important to factor in these costs when budgeting. To get a good idea of how much it will cost to set up a server for a small business, it might be helpful to talk to IT experts or get some expert advice.

Related Post:

Contact An IT Professional