How much does a server cost?


Servers are an essential part of all IT infrastructure. As your business grows, sooner or later you’ll need a server to support your operations – and that comes with server costs.
How much a server costs depends on your business needs and whether you’ll be renting a server or buying your own.
In this article, we’ll cover what a server is used for, renting vs owning a server and how to determine which option is best for your business.
What’s a server used for?
Business servers are used for a variety of purposes that vary based on the nature, size and scope of the business.
Before we get into server costs and what’s the right option for your business, it’s important to have an idea of what you’ll be using the server for.
Some of the tasks servers are typically used for include:
- Application hosting
- E-mail hosting
- File storage/sharing
- Windows domain controllers
- Printer servers
- DNS servers
Renting vs owning a server
When it comes to setting up a business server, there are a few options for how to go about it. You can either:
- Rent the server from a service provider for a fixed monthly price or
- Buy the server and store it yourself.
Finally, there’s also the option of buying the server and hosting it in a data centre – this is known as colocation. To keep things simple, in this article we’ll be focusing on the two options above.
There are pros and cons to both approaches – you can get a better idea of these in the tables below.
Renting a server
Renting a server involves leasing a virtual server or a bare metal server from a third-party data centre. As the user, you pay a monthly or annual fee for the hardware. In return, the hosting provider is in charge of most of the server-related responsibilities, giving you a flexible solution that’s easy to scale.
Pros |
Cons |
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Owning a server
In many ways, owning a server is more demanding than renting a server. To own a server, you need to buy, assemble and install it on your premises, and you’re responsible for maintaining it, too. However, it also offers advantages such as better reliability, customised security and high performance.
Pros |
Cons |
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High upfront cost: Server hardware isn’t cheap. For small businesses or startups with limited budgets, it’s often a difficult investment to make.
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Server costs: Should you rent or buy a server?
As you can see, renting and buying a server both have their advantages and disadvantages. In the end, whether you should rent or buy a server comes down to your business needs.
In the table below, we’ve made an overview of the server costs for renting and owning different types of servers, as well as what the different types of servers are best suited for.
Keep in mind that the prices in the table are a rough estimate – the exact cost may vary depending on the server specifications and vendor.
Server type |
Renting cost |
Owning cost (hardware) |
Best suited for |
Examples |
Entry-level/basic server |
Cloud hosting: £15-£50/month Dedicated hosting: £50-£150/month |
£400-£1,250 |
Small tasks like file storage, share printing or light applications – e.g. an internal website |
Dell PowerEdge T40, HPE ProLiant MicroServer |
Mid-range server |
Cloud hosting: £50-£200/month Dedicated hosting: £150-£300/month |
£1,200-£4,100 |
Businesses that need to handle multiple applications, databases or more intensive software |
Dell PowerEdge R340, Lenovo ThinkSystem SR250 |
High-performance server |
Cloud hosting: £200-£500+/month Dedicated hosting: £300-£500+/month |
£4,100-£12,300 |
Businesses that run demanding software, handle large amounts of data or have higher security needs |
Dell PowerEdge R740, HPE ProLiant DL380 |
So which option is best for you? Well, that depends on your business size, budget, IT expertise and growth expectations.
Renting a server is an ideal solution if you’re looking for a low-cost, flexible solution without the need for hands-on management. It’s especially useful for businesses that expect to scale quickly or need to minimise upfront costs.
On the other hand, if you want full control over your infrastructure, owning is better for you – especially if you have specialised needs or expect your server to run for several years without significant changes. It may also be the more economical choice for you if you require high performance and have predictable workloads.
There’s no one-size-fits-all solution when it comes to server costs and whether to rent or buy a server. It all comes down to your business needs and your budget.
You might also be interested in: ‘IT asset management: What is it, and how’s it done?’
Wrapping up
If your business is growing rapidly, you’ll likely need a server soon. If you’re just starting out or need flexibility, renting is likely your best bet. But if you have the resources and expect consistent, predictable workloads, owning a server might save you money in the long run.
In the end, it’s all about finding the right balance between control, cost and convenience for your business.