Many businesses are coming to the end of the life of an office server and asking the same question: replace it, or move to the cloud? There is no single right answer. This guide sets out the options, how they compare on cost, performance and security, when a server in the office still makes sense and how a move usually works.
The short answer
For most businesses of 10 to 500 staff, email and files belong in Microsoft 365, and applications that still need a server belong on a cloud server in a data centre. Keep a server in the office only for a specific reason, such as very large files, equipment that connects to it or an internet connection that cannot carry the load.
The options
| Option | What it means | Example |
|---|---|---|
| On premise server | A server you own, in your office or comms cupboard | A file and application server bought every five years |
| Software as a service | Software you use through a browser or app, run entirely by the vendor | Microsoft 365, Xero, a cloud practice management system |
| Public cloud servers | Virtual servers you rent from a large platform | Microsoft Azure |
| Private or managed cloud | Virtual servers run for you by a provider in its data centres | AustinCloud, in Perth data centres |
| Hybrid | A mix of the above | Files in SharePoint, an application on a cloud server, a small office server for design files |
How they compare
| On premise server | Cloud | |
|---|---|---|
| Cost | Large purchase every few years, plus power, backup and support | Monthly fee, rising and falling with use |
| Performance | Fast inside the office, slow for remote staff | The same from anywhere, limited by the internet link |
| Internet dependence | The office keeps working if the internet drops | The office needs a reliable link, ideally two |
| Security | Only as good as your patching, backups and physical security | Platform security is strong, settings and sign in are your job |
| Resilience | A single box can fail, flood or be stolen | Runs across data centres, with backups offsite by design |
| Growth | Capacity is fixed until you buy more | Add capacity in minutes |
| Remote work | Needs a VPN or remote desktop | Built in |
When a server in the office still makes sense
- Very large files such as CAD models, survey data, video or medical images that staff open all day and that would be slow over the internet.
- Equipment that connects to a server, such as manufacturing machines, lab instruments or building systems.
- Applications that are not supported in the cloud, or whose vendor licence ties them to hardware you own.
- Sites with poor internet, such as some regional and mine sites, where the link cannot carry the load.
Even then, the answer is often hybrid: a smaller office server for the large files, with everything else in the cloud and the server backed up offsite.
Things the cloud does not fix
Moving to the cloud does not remove the need for backups, patching or security. Microsoft keeps your data available, but a separate Microsoft 365 backup is what protects you from ransomware and mistakes. Cloud servers still need patching and monitoring. And most cloud breaches come from settings and sign in, not the platform, so multi-factor authentication and correct setup matter as much as ever. See our guides to backup and disaster recovery and multi-factor authentication.
How a move usually works
- Review. List every server, what runs on it, who uses it and what it connects to.
- Decide where each workload goes: Microsoft 365, a cloud server, a software as a service replacement or staying put.
- Fix the foundations: internet links, a backup link, identity and multi-factor authentication.
- Move in stages, starting with email and files, testing each system before it goes live and moving outside business hours.
- Retire the old server once everything has run in its new home for a few weeks, and wipe it properly.
Our cloud migration service runs this process from the readiness review to cutover.
Where Austin Technology fits
We run managed cloud servers in AustinCloud across Perth data centres, Microsoft Azure and hybrid setups for the systems that need to stay local, and we are happy to tell you when a server should stay in the office. See cloud services or call us on 1300 787 429.
Cloud and server questions
Is the cloud cheaper than an office server?
Often, but not always. An office server is a large purchase every five years or so, plus power, backup and support. Cloud is a monthly cost. Compare the full cost over five years, including the replacement you would otherwise buy and the downtime a single server risks.
Is the cloud secure?
The large cloud platforms are generally better protected than a server in an office. Most cloud breaches come from how the service was set up and who can sign in, which is why multi-factor authentication and correct settings matter more than where the server sits.
Where is our data stored in the cloud?
You choose. Microsoft 365 and Azure can keep data in Australian data centres, and a private cloud such as AustinCloud runs in Perth data centres. Ask any provider which country and which facility your data is in.
What happens if our internet goes down?
Staff can keep working from phones, home or another site, but the office itself loses access. That is why a cloud move usually comes with a second internet link that takes over automatically.
Can we move some systems and keep others?
Yes. Most businesses run a mix for a while, with email and files in Microsoft 365, some applications on cloud servers and one or two systems that stay in the office for a good reason.
How long does a move to the cloud take?
For a business of 20 to 100 staff, moving files and email usually takes a few weeks. Moving servers and line of business applications takes longer, because each one is planned, tested and moved outside business hours.
