Local server: is it worth it for your company to maintain one?

In a world where more and more companies are adopting cloud computing , many still rely on a local server . Is that your case?

Well, we know that the reasons for this decision are varied and range from a lack of confidence in the new technology to the absence of a structured plan focused on digital transformation. 

However, a question arises: is it still worthwhile to have one of these? In this article, we've decided to list some reasons to rethink the on-premise model. Keep reading to learn more!

6 reasons to understand whether it's worth maintaining a local server

1. The cost of the internal backup server itself

The first point highlighted in this article is cost . For a company's data to be stored securely and efficiently, a good quality server needs to be acquired.

With that, we've already entered the first major expense the company will incur when adopting a local server. After all, it will need the equipment to start its operation, and without it, it's impossible to store data.

But don't think that the acquisition cost is the only thing that should be considered. The resources spent on installation and the time that this may consume should also be taken into account.

Furthermore, this also includes expenses such as maintenance, prevention, and optimization of the tool , which needs to be constantly functioning. After all, a malfunction can result in lost time and losses for the organization.

2- Local server and electricity costs

In addition to the expenses listed above, an on-premise system needs to be connected at all times and requires support to ensure this happens more securely. 

In this case, a cooling system must be connected to the server to ensure that it does not reach high temperatures and end up being damaged in the process. Because, if this happens, crucial data for the company's operation may be lost.

So, if you own a business and still use a local server, consider these questions: how much do you spend on air conditioning running 24 hours a day? How much would that be in a year? And in five years?

In a different context, where the local server is replaced by a cloud server , it becomes possible, for example, to reallocate these electricity expenses to other more strategic areas of the company , investing directly in its growth.

3- Maintenance

Following the same premise as the last topic, we must include local server maintenance as one of the points to be considered. It generally affects companies in the medium and long term, but it is an unavoidable expense. 

When you buy a server, it arrives gleaming from the factory, but over time it loses its "new car smell" and needs repairs. Whether it's the data it handles, the software it installs, or the hardware, all these parts will require good maintenance, which should be done periodically.

In this scenario, server slowness is just the beginning of the end, which can result in data loss that could make the difference between your company's success and failure. 

When compared to cloud computing , maintenance ends up being much less. This is because all the hardware can be left aside , as well as a good part of the software.

An IT team still needs to be maintained, but this one will be able to focus on more important things. 

4- Physical space

For this topic, let's work with the following situation: your company has decided to work with a local server and has allocated a physical space that is perfect for the equipment to fit without major problems.

The entire installation was successfully completed and is perfectly integrated into the environment. The costs were high, but you know that the data is being well handled by your valuable IT team. 

This scenario seems like a "marvel," right? 

But let's say that after some time your organization starts processing an absurd amount of data, and the local server can no longer handle it .

It starts to slow down and malfunction. At that point, you need to expand it as quickly as possible. 

The problem is that the previously selected physical space is no longer suitable and needs to undergo renovations, which will generate costs and consume more time. Meanwhile, your server remains idle or at risk of being affected by the construction. 

This hypothetical situation can occur, especially if there is no proper planning. The physical space of a local server is always a headache, as it generates costs and can be an impediment to your company's continued growth. 

Even in this case, it goes without saying that if a cloud server had been adopted, this entire problem would have been solved. Even the need to expand the database would have been simpler , requiring only an upgrade to the service package, for example.

5- Local server and software licenses

And if the expenses described so far haven't been enough, even more resources need to be allocated to software licenses. Operating system, firewall program, and other applications must be purchased for the local server to function properly. 

Updates also need to be purchased, and in some cases, companies don't have a fixed price for a software license, but rather a periodic payment for its maintenance. 

How much is actually spent on this? Well, the cost will vary depending on the quality and quantity of the software . The company's IT team may also request specific applications to work with, always giving preference to those in which they have greater expertise.

It's worth remembering that these licenses need to be 100% up-to-date, both for the security of your server and to remain compliant with the law, such as the LGPD (Brazilian General Data Protection Law).

6- Depreciation of the internal backup server

Remember the scenario mentioned in the physical space section? The one where the company found itself needing to expand its local server? Well, imagine that, in that situation, something else needed to be done: replacing all the equipment.

To avoid getting rid of the old server and still get some value, selling it would be the most plausible option. The problem is that electronic equipment in the IT field depreciates considerably.

It is estimated that such a device loses 20% of its value each year, on average.

That's under the best-case scenario, since things move very quickly in the tech world, and tools that worked two years ago may not be effective now. 

What changes when migrating to the cloud? 

As we have seen, taking all these points into consideration, it is possible to see that a local server represents many costs and, in contrast, reflects few advantages for the business when compared to more advanced options, such as cloud servers.

Cloud servers end up being the best option for several reasons. Cost is one of the main ones, since a large part of what is spent on on-premise doesn't need to be invested in the cloud server. 

Physical space, server equipment, maintenance, software licenses, energy costs. All of this is the responsibility of the service provider, which, because it works directly with the servers, needs to invest in it, and these are not expenses that can be called "extras." It's part of these companies' core operations. 

In this case, the final cost in the cloud comes down to just a good internet service and a good company that can provide an efficient cloud service. This is considering only the financial aspect.

Furthermore, time can also be saved, and the resources that would have been spent end up being reallocated to other crucial areas of your company. Therefore, put all these expenses down on paper and you will see the difference.

As we can see, cloud services end up having a significant advantage over on-premise solutions when it comes to cost. This is a choice that can greatly help your company's finances, but it can also offer many other advantages! 

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Written by Skyone