Budgeting For A New Server (Questions/Answers)

How Much Does It Cost To Have A New Server Installed?

Servers are an undeniably necessary part of a business’ IT infrastructure – and for that very reason, they can be very expensive. But just how much should you expect to pay for a new server to be installed?

Put simply, the server is the brain of a given network. It literally provides the services that every computer — and therefore, every end user — needs to get their work done.

Whether you’re getting a start-up off the ground and need to invest in your first server, or recently realized that your current server is on its last legs, then you need to start budgeting for a replacement. But just how much will it cost you to replace, install, and maintain a new server?

What Are The 5 Key Costs Involved In Server Installation and Ongoing Maintenance?

1. Initial Cost To Purchase A Server = ~$4,000
   Obviously, to start, you’ll need to buy a server, along with all the software to make it run. Averaging out for the many different roles a server can fulfill, the cost can range anywhere from $3,000 – $5,000. While that may sound like a lot, the good news is that the price does include the Microsoft software as well.
2. Installation And Configuration = ~$100/hour
   This is often where the prices can range the most. Of course, if you have a lot of experience with and knowledge of IT, then you could handle the installation yourself and save a fair bit of money. However, if you’re not 100% confident in your ability to do so, you shouldn’t risk misconfiguring the server.
   In most cases, you’ll want to hire an IT services provider – make sure to do so before you actually purchase the server. They can make sure you actually get the right one for your needs. But before you hire them, you should be sure to find out what their hourly rates are. While in some cases you can hire a team for server installation at a flat rate, it’s more likely that you’ll pay by the hour for how long the project takes to complete.Again, prices can vary, but the average is around $100/hour, calculated out to how long the installation can take. That’ll depend on what you’re expecting the server to do for you. A more basic job may only take 10 or so billable hours, while a more robust set up can run up to twice as long from beginning to end.In any case, it’s important to find out what the hourly rate is, and how long they expect the project to take to complete – that way, you can more easily budget the entire process.
3. Cost Of A Useful Warranty = ~$1,500
   The fact is that as soon as you are using a server, you depend on it for virtually every aspect of your work. That’s why server downtime can be so crippling.In order to keep downtime at a minimum, make sure to invest in a good warranty, something in the range of a 4-hour onsite support warranty for 5 years. That way, if anything goes wrong, a technician can visit your location right away to fix it.This will cost you around $1,500 flat which, again, may seem like a lot, but it keeps you insured against extensive downtime for 5 years.
4. The Price Of Maintenance= ~$300/month
   In addition to a warranty to protect against server failure, you also need the hardware maintained on a regular basis. This includes the installation of patches and updates, running tests, and more. As with other costs, the price will be higher depending on how robust your configuration (i.e. if your server hosts email and data, or just data). The actual price will range from $200-$400 per month.
5. The Cost To Replace
   No matter how great the server is when you buy, how much you invest in a warranty and support, or how great your maintenance provider is, it won’t last forever. You should expect to replace your server every 3 -5 years, once again incurring all of the above costs, should your needs remain the same.

So what’s the total cost? In initial expenses alone, a server could run you upwards of $8,500, and that’s before ongoing maintenance.

Bottom line? Servers cost a lot to purchase, install and maintain. What’s more, they’ll only ever last you for a few years. Given how necessary they are, it’s really just the price of doing business – make sure you don’t pay any more than you have to.

Like this article? Check out GDPR Compliance (Information/Questions/Answers), How To Be More Secure By Using A Managed Service Provider, and Microsoft Office 365 Service Trust Portal: What It Is and How It Works to learn more.