What Are the Pros & Cons of an On-premises vs Data Center Hosted Server?

What Are the Pros & Cons of an On-premises vs Data Center Hosted Server?

Owning a server makes sense for many businesses in the Chesapeake-Norfolk area. It allows them to centralize data and host applications for their team. It can also enable hosting their own website and email.

But often companies find out that owning a server is more involved than they thought. Servers need to be well maintained, updated regularly, and run at optimal temperatures.

Without the proper hosting environment and technical staff, businesses can run into problems such as:

  • Slow connections
  • Shutdowns due to overheating
  • Security incidents
  • Data access issues
  • Unexpected and costly downtime

Colocation means hosting your server in a professional data center. This allows you to take advantage of several benefits while maintaining ownership.

These include:

  • Multihomed bandwidth
  • Remote access
  • Temperature control
  • Expert support staff

What are the drawbacks to hosting your server in a data center? What are the advantages?

We’ll go over the pros and cons next.

Evaluating the Advantages of Server Colocation

Servers aren’t “just like any other computer.” They need a higher level of expertise when it comes to administration. They can also cause more widespread downtime than a computer.

For example, if an employee’s computer goes down, it won’t cause other employee workstations to go down. But if a server is offline, it can mean an entire office is at a standstill because users can’t access critical data.

Downtime costs small business between $8,220 to $25,620 per hour.

So how you choose to maintain your server and where you locate i has a big impact on your business operations.

We’ll begin with the cons of colocation and then move onto the pros.


Your Server is No Longer On-Premises

Many businesses maintain their server on-site because they want complete control of access. While you will have remote access to your server, it won’t be in your office when using colocation.

You’ll Need to Coordinate with a Service Provider

When hosting your server in a data center, you need to coordinate with the data center provider. This includes for maintaining your server, gaining access, and other server-related activities.

You Have to Move the Server

You will have to go through the process of carefully packing up your server and shipping it to the data center. Many colocation providers will assist companies with safe equipment shipping.


Less Downtime

Data centers are set up to mitigate downtime. They have features like power backup generators and redundancies. These ensure your server stays up and running. This means less costly downtime for your business.

Most also have an uptime guarantee. For example, ZZ Servers offers a 99.99% network uptime guarantee for our data center customers.

Cost Savings on Utilities & Administration

You can save money on administrative costs and electricity when you collocate your server in a professional data center.

There is a team of experts on hand 24/7/365 watching over all operations. This includes system administrators and Network Operations Center (NOC) technicians.

The cost of electricity for operating a server can run up a company’s power bill. An average server can use between 500 to 1,200 watts per hour.

At the average commercial cost per kWh in Norfolk of $0.0780, that would be a cost between $39.00 – $93.60 per hour. By using data center hosting, a company could save $936.00 – $2,246.40 per 24-hours.

Improved Security & Compliance

Securing a server can be challenging if you’re hosting it on-premises. Servers are often the “golden prize” hackers look for after breaking into your network. They’re data-rich and often offer access to many programs. And if you host a website on your server, that just creates more gateways for hackers to get in.

Data centers take security very seriously, both network security and physical security. This includes firewalls and security controls and extra safeguards such as:

  • Server security scans
  • DNS and IP monitoring
  • Security guards on-site 24/7/365
  • Fire suppression and smoke detection systems

Speed & Performance

Slow server connections are a common complaint with on-premises servers. Companies run into ISP limitations when hosting their server on-site. The type of internet service you have impacts speed and performance.

Servers perform better when hosted in an optimal environment. Data centers create the perfect environment for server performance.

Data centers typically offer fast fiber connections. They also offer a range of bandwidth options. This gives companies the ability to adjust connection capacity to their needs.

The Best of Both Worlds

Colocation gives you the best of both worlds between on-premise and cloud computing.

You still own your server and have complete control over it. You can access it remotely through a web portal. This includes remote reboot and power management.

But in addition to access, you have a full-time team of experts. They keep a watchful eye over your server and maintain it properly. You also have someone to go to if you need help installing a new software or doing an operating system upgrade.

What Are the Business Benefits of Upgrading to Microsoft 365?

Upgrading to Microsoft 365 offers a range of office 365 and microsoft 365 benefits for businesses. It provides seamless collaboration and communication tools, increased productivity with cloud storage, enhanced security features, and regular software updates. With flexible subscription options, businesses gain access to a comprehensive suite of applications, improving efficiency and enabling remote work capabilities. Additionally, Microsoft 365 ensures data privacy and compliance, giving businesses added peace of mind.

Learn More About Tier 1 Data Center Hosting for Your Server

ZZ Servers has flexible and affordable options to give you the best of both worlds for your server hosting needs.

Contact us today to schedule a free consultation. Call 800-796-3574 or reach out online.

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