What's the Cost of a Server for Small Business (2024)

January 1, 2024

13 min read

ColocationSmall Business

There comes a time in the life of nearly every small business where setting up your own server makes the most sense.

This could be due to:

  • a rising number of visitors to your e-commerce site
  • wanting to run a number of different business applications
  • Requiring greater uptime and reliability
  • And a variety of other reasons

As you can see, there are many different reasons why you may be ready to setup your own small business server. But the next question becomes, how much does a small business server cost? The server you select becomes the control centre of your entire business. Selecting the right equipment to support your needs is imperative to your business’s success.

See Also:Dedicated Server Hosting Plans For Business

Running your own server dedicated to your business may be more affordable than you think. In this article, we’ll outline some of the cost considerations to help you make the right decision.

Table of Contents

1. Renting vs. Owning A Server 1.1. Renting A Server 1.2. Purchasing A Server 1.3. Colocating A Server 2. Small Business Server Pricing Considerations 2.1. Minimal Server Needs 2.2. Moderate Server Requirements 2.3. Extensive Server Requirements 3. Additional Cost Considerations 3.1. The Initial Setup Cost 3.2. Maintenance Costs 4. How Much Does a Server Cost for a Small Business? Ask a Pro

Renting vs. Owning A Server

You have three options when setting up your business server. You can either:

  1. Rent the server for one fixed monthly price from a service provider like ServerMania,
  2. Purchase a server from a company like Dell and store it in your office, or
  3. Purchase a server and host it in our data center. This is called colocation.

Each approach has advantages and disadvantages, so we’ll explore each so you know which route may make more sense for your business.

Please Note:ServerMania’s entire business is focused on providing server solutions, which includes dedicated server rental and colocation. While we clearly think renting or colocating a server is the best choice, we are trying to present all the facts to you in an unbiased way so you can make the right choice for your business.

Renting A Server

Advantages

  • One fixed monthly price which includes hardware, cooling, power, security, and 24×7 support
  • Access to the latest hardware with the option to migrate to a new server at any time as hardware improves
  • 24×7 onsite support to assist you with any server related issues
  • No hardware replacement costs. We will quickly replace any failed hardware components.
  • Redundant power, networking, and security that would not be feasible in an office environment
  • Reduced hardware costs

Disadvantages

  • No physical access to stored data, if your business were to close down, you would need to copy the data from the server to local storage
  • Purchasing hardware may be cheaper for businesses that want to stay on the same hardware for years

Purchasing A Server

Advantages

  • One large, up-front payment to worry about and the hardware can be used until it is obsolete
  • Physical access to the hard drives to store the information offline

Disadvantages

  • Additional expenses for power, cooling, and networking
  • No redundancy typically available for power and networking
  • No security or fire suppression in place to protect server data
  • Hardware repair and replacement costs
  • Server hardware

See Also: Cheap Cloud Hosting

Colocating A Server

Advantages

  • Server is securely stored and monitored 24×7
  • Redundant network, power, and cooling
  • Precisely climate controlled with fire suppression
  • 24×7 remote hands

Disadvantages

  • Up-front hardware cost
  • Responsible for hardware replacement in the event of hardware failure

See also: Managed Colocation Servers in Top Tier Data Centers

Small Business Server Pricing Considerations

Now that you are familiar with the three options for setting up a small business server, we will explore some example pricing scenarios depending on your needs.

Every business is unique and we always recommend booking a server consultation so we can customize a solution based on your exact needs and budget. The average cost to rent a small business dedicated server is $100 to $200/month. You can also setup a cloud server starting at $5/month, but most businesses would spend about $40/month to have adequate resources. If you wanted to purchase a server for your office, it may cost between $1000-$3000 for a small business.

The cost of a small business server will depend on how much CPU, bandwidth, disk space, and memory is required. There are other considerations, as well. These include RAID, DDoS protection, and hard drive type used in the cloud server or dedicated server.

We’ve categorized small business servers into three categories based on some typical needs.

Minimal Server Needs

Servers in this category would be perfect for running a small e-commerce or company website, email server, and file storage.

SERVER TYPERENTING A CLOUD SERVERRENTING A DEDICATED SERVEROWNINGCOLOCATION
Server Specs4 CPU Cores

8GB RAM

160GB Storage

5TB Bandwidth

Intel E3 1240V3

32GB RAM

500GB SSD

Setup in 8 Hours

E3-1240 v5 (3.50 GHz)

32GB RAM

500GB SSD

E3-1240 v5 (3.50 GHz)

32GB RAM

500GB SSD

Up Front Cost$0.00$0.00Server:$1476

RAM:$147

HDD: $95

Total: $1718

Server:$1476

RAM:$147

HDD: $95

Total: $1718

Monthly Cost$40/month$70/monthEstimated $30.24 for power + cooling and internet expenses.$79/month
Order:Order A Cloud Server NowOrder a Dedicated Server NowPurchase from NeweggOrder Now

Moderate Server Requirements

These servers are ideal for business running a moderately trafficed e-commerce website, more powerful SaaS applications, and server extensive applications like databases.

SERVER TYPERENTINGOWNINGCOLOCATION
Server SpecsIntel Xeon W-2125

32GB RAM

2x 500GB SSD

Setup in 8 Hours

Intel Xeon W-2125

32GB RAM

2x 500GB SSD

Intel Xeon W-2125

32GB RAM

2x 500GB SSD

Up Front Cost$0.00Server:$1627

RAM:$213

HDD: $130

Total: $1970 + tax

Server:$1627

RAM:$213

HDD: $130

Total: $1970 + tax

Monthly Cost$140/monthEstimated $30.24 for power + cooling and internet expenses.$79/month
ORDER NOWORDERORDER FROM NEWEGGORDER

Extensive Server Requirements

These servers are ideal for business running highly trafficed e-commerce website, powerful SaaS applications, and server extensive applications like databases.

SERVER TYPERENTINGOWNINGCOLOCATION
Server SpecsDual Intel Xeon Silver 4114

64GB RAM

2x 500GB SSD

Dual Intel Xeon Silver 4114

64GB RAM

2x 500GB SSD

Intel Xeon W-2125

32GB RAM

2x 500GB SSD

Up Front Cost$0.00Server:$3550

RAM:$213

HDD: $130

Total: $3893 + tax

Server:$3550

RAM:$213

HDD: $130

Total: $3893 + tax

Monthly Cost$295/monthEstimated $60.24 for power monthly.

Add cooling and internet expenses.

$79/month
ORDER NOW:ORDERORDER FROM NEWEGGORDER

See Also:(On Demand) Meet ServerMania: Transform Your Server Hosting Experience

Additional Cost Considerations

The Initial Setup Cost

Another consideration when trying to figure out “how much does a server cost for a small business?” is the setup cost.

For most business owners, this isn’t a job they will want to tackle alone. As a result, hiring the professionals is best.

A typical rate for this job would be between $100 and $150, but this also varies based on what needs to be done. For example, setting up an email host, or a disaster recovery, and advanced backup system are large projects on their own.

The key to an affordable and successful server setup is finding the right team to handle the job.

Maintenance Costs

You will have to have professionals come in and maintain your server and provide troubleshooting tips from time to time. If you choose to rent or colocate a server, you can rely on our 24×7 expert support team for help rather than having to hire a pro.

Servers are complicated pieces of software and hardware, and they have to be maintained to continue working properly. The exact costs of the maintenance depend on what is needed.

How Much Does a Server Cost for a Small Business? Ask a Pro

Unfortunately, there is no “bottom line” sum that can be given regarding how much a server costs for a small business. Every business is unique and so are their server needs.

Your best bet is to work with the professionals who will be able to help you find the right server for your business, that includes all the right features and that fits within your budget.

If you need more information about purchasing a server for your small business, contact our team. We can help ensure your business runs smoothly.

About the author

Cameron Downs

Empowering businesses with exceptional server hosting

Passionate about the ever-evolving landscape of technology, Cameron Downs is a seasoned sales professional in the world of servers and hosting solutions. As a key player at ServerMania, he brings a wealth of experience and expertise to the table, ensuring clients receive top-notch services tailored to their unique needs.

What's the Cost of a Server for Small Business (2024)

FAQs

What's the Cost of a Server for Small Business? ›

The average cost to rent a small business dedicated server is $100 to $200/month. You can also setup a cloud server starting at $5/month, but most businesses would spend about $40/month to have adequate resources. If you wanted to purchase a server for your office, it may cost between $1000-$3000 for a small business.

How much does a server cost for a small business? ›

So how much does it usually cost to set up a server for a small business? You have to consider the cost of hardware, installation, and maintenance and repair. The usual cost of the server hardware fit for a small business falls between $1000 and $4000, while installation will rack you up another few hundred dollars.

What is the average price for servers? ›

Buying a server for your business can rack you up between $1000 to $2500. You will need to consider many factors to get it up and running properly. Consider core hardware like CPU, hard drives, memory such as ECC RAM, chassis, processor, motherboard and power supply.

What is the approximate cost of a server? ›

The basic rack server hardware cost for small business starts from ₹80,000/-. Depending on the configuration & requirements of the customer, we provide the server price in India. OTP as been verified!

What server do you need for small business? ›

Best for scalability: HPE ProLiant ML350 Gen10

Although you need to add your own hard drive option, this server offers support for a wide range of them. Because of all the expansion slots and options, an SMB can affordably turn this tower server into a rack server.

Do small companies need a server? ›

Handling security updates on one system at a time and sharing files between individuals is a workable solution until the business grows and the number of employees involved increases. A server provides a central location to push out security updates and upload information that needs to be available to everyone.

Is IT cheaper to buy or rent a server? ›

As a startup owner, you don't have the time or money to invest in buying your own server, as it is time-consuming and expensive. Hence, renting a dedicated server from a reputable rental server provider will maximize your business profit and minimize your financial risks.

How much should I pay my servers? ›

Servers work for tips

While it is customary to tip between 15% and 20%, many people tip above or below that based on their perception of the quality of service. The national minimum wage for tipped workers is $2.13/hour but, by law, restaurants must pay servers an hourly wage of at least $7.25/hour.

Is it expensive to host a server? ›

Users can expect to pay anywhere from $20 to $100 per month. With VPS, users still share server space with other websites. However, there are fewer websites sharing the same space.

What is good money for a server? ›

How Much Do Restaurant Server Jobs Pay per Week?
Annual SalaryWeekly Pay
Top Earners$39,500$759
75th Percentile$32,000$615
Average$28,176$541
25th Percentile$20,000$384

How to build your own server? ›

How to set up a server at home? A step-by-step guide
  1. Choose your fighter (read hardware) The first step is to choose the hardware you'll use for your server. ...
  2. Install an operating system (OS) ...
  3. Adjust network settings. ...
  4. Install server software. ...
  5. Set up user accounts. ...
  6. Test your server.
Nov 3, 2023

Why are servers expensive? ›

Examples of proprietary server-grade components include motherboards, CPUs, memory, and storage controllers. This makes server components more expensive because you'll need to purchase other proprietary parts from the same manufacturer to make them work as a system.

How many users can a server handle? ›

A: Even though it depends on the hardware and system resources, any decent server can easily handle even more than a million users. Of course, that is provided you use a VPS solution with very few other users or rent an entire dedicated server for your needs alone.

How to set up a small business server? ›

Here's a detailed, step-by-step guide on how to set one up for your small business:
  1. Step 1: Choose Your Server Type. ...
  2. Step 2: Select Your Hardware. ...
  3. Step 3: Choose Your Server Operating System. ...
  4. Step 4: Install Your Server Operating System. ...
  5. Step 5: Configure Your Server. ...
  6. Step 6: Test Your Server. ...
  7. Step 7: Maintain Your Server.
May 29, 2023

How long should a small business server last? ›

Some IT professionals recommend replacing small business servers every 4-6 years. The traditional industry standard for server replacement has been 3-5 years, depending on usage. However, the average server lifecycle is becoming shorter as more businesses realize the advantages of regularly upgrading.

How many servers should a small business have? ›

A small business may be able to get by with a single server if it has a small number of employees and a limited number of applications and data to manage. However, as the business grows and becomes more complex, it may need to add additional servers to handle the increased workload.

How much does IT cost to setup my own server? ›

The cost of a dedicated server in India can vary depending on several factors, including the specifications of the server, the hosting provider, and any additional services or features included. On average, you can expect to pay anywhere from ₹5,000 to ₹25,000 or more per month for a dedicated server in India.

How much does a server cost to run a month? ›

Cost of maintaining the server

However, the upkeep process requires from 1-10 hours monthly. This can be difficult to approximate when you don't know the needs or type of hardware. However, you may consider the average fee of $150hourly. Therefore, the upkeep fee can range from $150-$1,500per month.

How many servers do you need for a small business? ›

A small business may be able to get by with a single server if it has a small number of employees and a limited number of applications and data to manage. However, as the business grows and becomes more complex, it may need to add additional servers to handle the increased workload.

Top Articles
Latest Posts
Article information

Author: Van Hayes

Last Updated:

Views: 5519

Rating: 4.6 / 5 (66 voted)

Reviews: 89% of readers found this page helpful

Author information

Name: Van Hayes

Birthday: 1994-06-07

Address: 2004 Kling Rapid, New Destiny, MT 64658-2367

Phone: +512425013758

Job: National Farming Director

Hobby: Reading, Polo, Genealogy, amateur radio, Scouting, Stand-up comedy, Cryptography

Introduction: My name is Van Hayes, I am a thankful, friendly, smiling, calm, powerful, fine, enthusiastic person who loves writing and wants to share my knowledge and understanding with you.