Servers Are Dead! Long Live the Server

by Mike Minkler

We work with businesses at all stages of cloud adoption. Most have already moved to Microsoft 365 or Google Workspace. But here’s the big question: Do you still need that server in your office? The answer isn’t always obvious—and it deserves careful consideration.

Time to Do the Math
Like any major decision, you need to weigh all the factors before pulling the plug on your server and committing to a full cloud migration. One of the biggest factors? Cost.

The cloud isn’t free—and depending on your situation, it can be expensive. This question often comes up when a business needs a new server:

-Is now the time to move everything to the cloud?

-Or should we make another capital investment in hardware?

If we assume the average life of a server is five years, compare the capital expense of buying a new server to the recurring costs of running everything in the cloud over the same period. It’s not unusual to find that the cloud can cost two to three times more than a new server.

Beyond Cost: Other Factors to Consider
Cost isn’t the only consideration. The cloud offers some clear advantages:
- Scalability: Easily add storage or processing power.
- Remote Access: Work from anywhere with ease.
- Continuous Improvement: Big players like Microsoft, Google, and Amazon are constantly enhancing their platforms, which can lead to productivity gains over time (though these are hard to quantify).

So even if the cloud costs more, the benefits may justify the investment.

Are Your Applications Holding You Back?
The biggest variable in moving to the cloud is your applications. If you’re running software that requires an on-premises server, you’ll need a plan.

Start by asking your software vendor if they offer a cloud version. This usually comes as a subscription based on the number of users—what we techies call Software as a Service (SaaS). This is the preferred path because it’s typically the most cost-effective and easiest to maintain. Plus, you’ll benefit from automatic updates without the hassle of manual upgrades.

If your vendor doesn’t offer a cloud option, your choices are:
- Wait until they do.
- Switch to a vendor that does.
- Host your application on a virtual server in Microsoft Azure or Amazon AWS.
None of these options are perfect, so do a careful cost-benefit analysis before deciding.

What About All Those Files?
One of the biggest advantages of Microsoft 365, Google Workspace, and other cloud storage solutions (like Dropbox or Egnyte) is the ability to store files in the cloud. But beware:

- Costs can add up quickly if you have a lot of data.

- Not all files play nicely in the cloud. For example, architects and engineers often work with very large files that don’t perform well in cloud storage. In those cases, local storage or a server may still be necessary.

If your work primarily involves Microsoft Office or PDF files, you’ll have a much easier time. The key is to analyze your file types before making a decision.

Take a Proactive Approach
If you still have a server in your office, that might be the best solution for now—so don’t feel like you’re behind. But now is the time to start planning. When your server reaches the end of its life, you’ll want to be ready.

If you wait until your server fails and you need an emergency replacement, you could miss your window of opportunity.

Bottom line: The cloud isn’t always cheaper, and it’s not always better—but it does offer flexibility and scalability that traditional servers can’t match. The right choice depends on your applications, your data, and your budget.

Mike Minkler is a Founding Partner at CMIT Solutions St. Louis, a Managed IT Service Provider. Contact Mike at 314.628.0811 or visit www.cmitstl.com.