Cloud or Physical: What is the Right Server For Your Business?

It’s important to keep data organized and accessible. The question for many businesses is how. Here, we’ll discuss two common solutions to help you reach a decision on managing your data – a cloud server and a physical server. What is the right server for your business?

Cloud or Physical: What is the Right Server For Your Business?

Cloud or Physical: What is the Right Server For Your Business?

Cloud or Physical: What is the Right Server For Your Business?

Cloud Servers

Cloud servers are servers built, hosted and delivered through the Internet. They are similar to a typical server but are accessed remotely from a cloud service provider.


1. A cloud-based server removes many of the management responsibilities and challenges of running a server from you. Sign up, make the payment and you’re only a few minutes from having a server for your business. This ease is very appealing for many businesses.

2. Another advantage of cloud servers is that they can quickly scale to your needs. Just expanded your team? Update your provider and they’ll provide additional hard disk space and logins for each of them.


The two biggest issues you need to consider cost and reliability. Cloud servers use a pay-as-you-use model with monthly subscriptions. It’s important to do the numbers before investing. The monthly subscriptions for each of your employees once totaled for the year, can end up costing more than a physical server. All that money and you still don’t own the server.
Secondly, a cloud server is dependent on the quality of your Internet connection. Service disruptions can stop work and reduce the productivity of your staff. Imagine if you were not able to access your files before an important presentation!


Physical Servers

A physical server is a dedicated machine in your office. The hardware is under your management and acts as the heart of your office network. It connects your PCs together while offering a secure home for your business data.

Cloud or Physical: What is the Right Server For Your Business? 1


Having physical hardware also means you can custom fit that hardware to your needs – you can define the memory, CPU, network, and storage requirements you need for your application and fit that hardware exactly to your needs.

Managing costs is a key consideration for business. When you’re in control of your IT, you can ensure your server is within budget. When you buy a physical server, that’s a one-time cost (beyond maintenance) and you decide when it’s the right time to upgrade.

Security in a physical environment may be better than the cloud since you are in control 100% of the time. However, this is strongly dependent on you implementing the right security solutions to protect your IT.


With physical servers, a system failure can take down everything. Cloud computing reduces the risk and offers you a recourse through your cloud provider.

What is recommended

Small businesses will find that physical servers and cloud servers are great complements to each other – it’s not a choice between one or the other.

A new physical server will prove itself in short order especially when it is powered by an Intel Xeon Processor E3 family processor. A cloud server offers access to enterprise-class capabilities and services, no matter the size of your business. By running both, you can run applications on the best platform for each:

Server                                                                                                                Cloud

Databases                                                                                                              Email services
File and print services                                                                                        Backup and recovery
Collaboration applications                                                                                Web servers
Data analytics                                                                                                       Storage
Engineering and design tools                                                                           Customer Relationship Management (CRM)
Test and development environments                                                             Video streaming

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