How Much Do Physical Servers for a Small Business Cost?

When you’re running a small business, allow your money to work for you. This means cutting costs wherever possible and investing wisely in technology that will enable your business to grow.

The most important thing about any IT infrastructure is whether it works when you need it. If you have an unreliable server that fails when customers need their information, then there’s no point in having one at all.

Physical servers are becoming more popular because they offer the highest levels of reliability and security available today compared to virtual servers (also known as VPS). However, physical servers cost more, depending on several factors like hardware, maintenance, and installation. We discuss those factors in detail in the rest of this article.

Factors That Determine the Cost of Physical Servers

The cost of a physical server depends on several factors, including the following:

  • Hardware: The hardware you choose will affect your server performance and the software you can run. For example, you may want to opt for a faster CPU or more RAM than other businesses in your industry.
  • Software licenses: You’ll need to buy or lease the operating system and any other software that goes into running your server from day one (like an antivirus program).
  • Installation fees: If you don’t have staff trained in setting up servers, you will have to hire a company for the task.
  • Maintenance fees: Regular maintenance is vital to ensure your servers reach their expected lifespan. This will require booking a professional service for recurring checks.

All these costs contribute to how much you might spend acquiring a server for your small business. In the sections below, we discuss them in more detail.

Cost of Hardware

The cost of server hardware is one of the biggest hidden costs of running a small business. It can be hard to plan for these expenses because they’re not always predictable. The cost depends on several factors:

  • Memory: The amount and type of memory affect how many apps you can run at once and how fast they will run. The more RAM (random access memory) your server has, the better. You can click here to read more about RAM.
  • CPU (processor): This part determines how powerful your system is, so it can handle complex processes like running multiple programs at once or large amounts of data without slowing down. A high-end CPU may cost around $5000 per month but only increase performance by 10%. So, unless you have an unusual number of users on your network, this might not be necessary. You can also find less expensive options that would fit within budget constraints.

Cost of Installation

Installation costs will depend on the type of server you choose. The different types of servers include rack-mount, blade, and tower. Each one has a separate cost and different installation procedure, and if applicable, you will also have to factor in the costs of a server rack installation as well.

Rack-mount servers are installed in racks, while towers are placed on desks or tables.

For blade servers, you can mount them directly into a standard 19-inch rack. This will require special brackets that hook into the rack’s rails (the metal bars along each side of the rack), allowing them to slide in and out easily without damage.

Some server distributors might offer free installation on some purchases. However, if this is not the case, you can hire a professional. This might cost between $500 and $1,000.

Cost of Maintenance

Cost of Maintenance

The cost of maintaining your server could be covered by a monthly maintenance fee. It will include the cost of keeping it up to date, fixing any problems that arise, and hiring a professional to do the work if you don’t have an IT person on staff.

Additionally, there is always the possibility that some part of your physical server will need replacing or upgrading. This might happen infrequently but costs a lot each time (say, $10K); you’ll have to include it in the maintenance fees.

Cost of Security

Virtual servers are less secure and reliable than physical servers. This is because virtual servers run on top of a shared operating system and hardware. So, the risk of security breaches is higher. You can check this link: to learn more about the demerits of virtual servers.

Another reason is that virtual machines are created with a generic identity, which means they share resources with other virtual machines on the same host server. This could be problematic if one of those other VMs were compromised by an attacker. This takes us back to the traditional option – physical servers.

Physical servers offer high security and reliability because they’re dedicated to serving only one purpose: processing requests from your applications or services. And although physical servers might cost more upfront than their virtual counterparts (you’ll have to buy them outright). In the long run, you’ll save money by not having any downtime due to server failure or data loss. This will benefit everyone involved in your business (including customers).

You can purchase security software, like an antivirus, to secure your server. Some software providers offer their products on a subscription base; you’ll have to renew the service periodically. You might spend between $500 and $2,000 monthly to secure your server.


Physical servers are one of the best options for small business owners who need high security and reliability. They also offer flexibility in terms of scalability; they can be scaled up or down as needed.

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