A new client approached us as their current IT provider wanted to replace the ageing server with a new replacement. That's normal, as sooner or later, every business with a server has the same issue. It starts getting slow, the warranty expires and security updates stop.
That's exactly where this client was when they came to us. The new server including installation and decommissioning the old one would cost about £23,000, so they asked us to sanity-check it before they signed off. Here's what we found, what we did instead, and how much they saved.
The Problem
The server had been running in their business for about 7 years. It managed the user accounts, stored shared files, hosted some critical line-of-business software and provided remote access for work from home staff, the lot. It was working hard and doing its job well, but it was near the end of its life. Hardware was ageing, software was ageing, warranty was running out and every week it risked failing on a busy Monday.
The obvious and simplest fix was to swap it for a new one. But due to rising prices the quote came in at around £23,000, and that was only the hardware and setup. On top of that you'd have the electricity, the maintenance, the warranty renewals and, about five to seven years later, the same conversation all over again.
Why We Didn't Just Replace It
A new server would have solved the immediate problem, but we didn't think it was the right investment for how this client actually works. Everything still ran through one box in one room, all with multiple single points of failure. If that room lost power or internet, everyone stopped.
So we asked them a different question. Do they need a server at all?
Alcom IT's Solution: Move to the Cloud
For the majority of small-medium businesses today, a server just isn't needed. Almost everything a server did ten years ago can now run in the cloud, more reliably and a whole lot cheaper. Here's what we did:
- Moved files to Microsoft 365. Shared drives went to SharePoint and OneDrive, so the team can reach their files from anywhere, on any device, with version history built in.
- Moved user accounts and security to the cloud. Logins, permissions and device management are now handled centrally. We also used the move to switch on MFA across the business.
- Moved the business software to a hosted virtual server. No more relying on one machine in the corner.
- Set up proper cloud backups. These are separate from the live data, so even a worst-case scenario like a ransomware attack doesn't take everything down with it.
- Planned the switchover around the team. We migrated in stages and did the pre-migration testing and heavy lifting out of hours, so on Monday morning people logged in and carried on working.
The Outcome
The numbers speak for themselves:
| Replacing the server | Cost |
|---|---|
| New server quoted | £23,000 |
| Server running costs over 5 years (e.g. support and electricity) | £9,000 |
| Total cost of ownership for 5 years | £32,000 |
| Moving to the cloud | Cost |
|---|---|
| Alcom IT cloud migration project | £5,000 |
| Licences over 5 years | £20,500 |
| Total cost for 5 years | £25,500 |
Total saving over 5 years: £6,500
But wait! After 5 years, there is no cloud migration project needed again, so the real win is in the next server replacement cycle they would have needed. Another £23,000 plus £5,000 migration cost saved.
This makes the total savings over 10 years potentially over £28,000 (no new server next time around and no migration fee again).
The savings aren't just financial though. There's no server to break down, overheat or replace in five years' time. The team can work from anywhere, security is stronger than it was and the business is no longer tied to one piece of hardware in a room.
Is Your Server Due for Replacement?
If you've been quoted for a new server, or you know yours may be due soon, it's worth a second opinion. Sometimes a server really is the right answer. Often it isn't. Either way, get in touch with our team and we'll give you an honest view of what your business actually needs, with all the tools to carry out the job.
*All prices exclude VAT
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