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5 Key Things that Influence Server Costs

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5 Key Things that Influence Server Costs

If you’re in the market for servers –whether cloud, dedicated or on-site servers- chances are you’ve seen a wide variety of options, as well as their prices. If you’re alarmed by some of the prices you’ve seen, don’t be.

Server costs are usually determined by a range of factors. These factors and your requirements will ultimately determine if you are paying too much or not.

5 Key Things that Influence Server Costs

Some servers cost as little as $300 monthly, while others cost as much as $5,000 monthly. All of these costs are influenced are largely tied to the functions and features of the server.

As you might imagine, dedicated servers are more expensive to own and maintain than cloud servers. However, this doesn’t mean that some companies have pretty outrageous rates for similar specs and configurations.

While features and specifications do influence your prices, it’s not the same as a company offering basic features at premium rates. You’ve got to know the difference between the two. So, what features directly influence the cost of your server?

Server Speed

One of the best things about cloud servers is that they have great on-demand capacities. So, if you want an instant server for your business processes and activities, this is guaranteed to get you started right away.

This is possible because cloud server setups are basically handled by third-party server companies. Of course, just because you have a cloud server doesn’t mean that you won’t need in-house server management specialists.

Can you do it without them? Yes. But that’s only when you don’t really have a lot of data processes going on. But if you work with a ton of data, you need someone in-house monitoring traffic, server stats, data inflow/outflow, and all other associated processes.

Dedicated on-site servers take a lot longer to set up and often have a lot more associated costs. However, if you’re a medium-sized business with a lot of data processes, and need the security that only an on-site dedicated server can offer, the investment can be worth it.

Compliance Requirements

With the passing of the GDPR act in 2018, compliance has become a huge priority. If you’re dealing with a lot of personal information, this might dictate the need for a dedicated server, even if you prefer a cloud server for your business.

So, even if the cost of having an on-site server can be high, you might need to consider the costs of non-compliance in the event of a lawsuit. This is why the regulatory demands in your industry can affect how much you end up spending on a server.

So, what are your requirements for compliance in your industry? If a dedicated server is going to be cheaper than a €20 million fine in the long run, then invest you should.

Support, Configuration and Management Demands

Who will manage your server? What’s the configuration? What kind of support are you willing to pay for? Most server companies have different prices for all of these features.

And these needs will determine if you need a certain type of server or not. For instance, if you have huge workloads that require frequent management and scaling, a cloud server might be better for your business.

But, if you have a more stable or fixed workload, dedicated servers might serve you better. Of course, all of these are still subject to multiple factors like IT compliant staff, server knowledge and so on.

Then, there’s the role of the server provider. How responsive are they? Some vendors are very fast with their updates, and even handle it for you without your knowledge.

Others, require you to manually carry out the updates. This article by ServerMania breaks it all down for you. At the end of the day, it all comes down to how much all these services are worth to you.

For many organizations, having all these updates and scaling automatically handled helps improve their efficiency, data security, and safety. This is why working with the right server company is imperative; maybe even more than the cost implications.

Workload Input and Output Needs

Your server costs also include your input/output workloads. If you have high input and output workloads, chances are it’s going to take a toll on your server, and you’ll have to keep increasing the capacity to meet up with the demands of workload.

This means that for companies using cloud servers, this might translate into significantly higher costs, which eventually exceed the cost of running your own dedicated or hardware server.

This is why we recommend that you consider all these when you’re making a decision between cloud and dedicated servers.

Quality of Service

While server costs are important, what’s often more important is the quality of service you’ll be getting. You need to consider how a seamless, high performance and super-efficient server impacts your business, customers, clients, and visitors.

If using a pricey service provider will give you and your customers that peace of mind and satisfaction respectively, then that cost is worth it.

You need to think beyond just what the initial costs are and factor in what the costs will mean for your business in the short, medium and long term.

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