Can cloud-hosted servers save your business money?

Can cloud-hosted servers save your business money?

Many business activities rely on servers, and many business owners understand the need to have their own dedicated servers. Servers let you store, analyze, process, distribute, and receive data; but costs associated with their setup and maintenance might be hefty for small- and medium-sized enterprises. If you're a business owner looking to save on server costs, it may be time to switch to hosted servers.

Comparing traditional servers to hosted servers

Conventional, or on-premises, servers are those that are housed and managed on site by the company's IT department. In other words, the company that owns a server is responsible for its configuration, security, and power and cooling. One clear benefit of a traditional server, however, is that it is not completely reliant on the internet to function, which is a crucial feature for many companies.

Although on-premises servers can be scaled, they require manual labor and additional hardware. So, when your business's data storage and computing needs change, you may have to upgrade your hardware to reach a desired level of performance. And upgrading hardware entails additional costs.

Cloud-hosted servers, on the other hand, are managed off site by a hosting provider. The service typically includes the cost of renting rack space, configuring the server, monitoring performance, and providing customer support. This means that you don't have to worry about hiring (and paying) staff to keep your servers running smoothly

And because hosted servers are delivered over a network (i.e., the internet), multiple users can access resources on cloud servers on demand. What's more, cloud-based servers can provide the same capabilities as a physical server in terms of computational power, storage, and applications. So, your company's data and applications can all be served through standard web hosting.

How cloud hosted servers cut down costs

Besides the aforementioned benefits, one of the most undeniable advantages of a hosted server is that it helps you save money. Here are the ways it can do that:

No upfront costs

Businesses that use on-premises servers typically have to pay for server hardware, software, maintenance, and repairs. The average cost of on-premises servers range between $1,000 and $3,000, but this could go higher if you need more powerful servers. On top of that, you may also need to hire IT staff to manage servers.

Opting for hosted servers eliminates the need to pay for hardware, software, and maintenance, as the service provider takes care of all of those. Businesses only need to pay a monthly or annual fee, which can be a significant saving for small businesses that may not have the budget for a large upfront investment.

Reduced energy spending

On-premises servers typically require a lot of power to run, which can add up to a large expense over time. By contrast, hosted servers use much less power and thus lets you save on energy bills.

No surprise costs

Hosted servers can help you avoid unexpected costs, such as when your on-premises server goes down and you need to pay for emergency repairs or replacement equipment. With a hosted server, all of the maintenance and upkeep is handled by the provider. And if you're replacing old servers, you won't have to purchase new apps and an updated operating system to run your new servers.

Greater reliability

Server downtime is one of the worst things that can happen to your business. And if your company maintains its own server that suffers from frequent downtime, whether it's due to human error, hardware failure, or poor maintenance, you may end up losing money in the long term.

Related reading: What are the most common causes of server downtime?

This is why hosted servers, which are often more reliable than traditional on-premises servers, are a great alternative. Hosting companies specialize in server administration and have the resources to invest in advanced hardware and software. They also monitor servers even outside of office hours, which means they're well-positioned to address any potential issues and minimize cybersecurity risks.

If you're looking for ways to reduce your operating costs, switching to a hosted server is definitely worth considering. Contact our team of IT professionals to learn more about how your California business can benefit from hosting services. Give us a call today.

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