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How Much Does a Server Cost?

How Much Does a Server Cost?

Servers form the fundamental building blocks of all IT infrastructures. As businesses experience rapid growth, the necessity for a server to support their operations becomes inevitable.

There is no fixed cost that we can provide when it comes to building a server. Before beginning, you must assess your server requirements, and specifications, and set a target budget.

When it comes to acquiring a server for your business, there is a multitude of options available, and we will cover them in this article.

What Are Servers Used For?

Business servers are configured to serve specific functions, which vary based on the nature, size, and scope of the business. To comprehend the pricing of the desired business server, you need to carefully consider its intended purpose and the tasks it will perform.

  • Application Hosting
  • Email Hosting
  • File Storage/Sharing
  • Windows Domain Controllers
  • Printer Servers
  • DNS Servers

In the life of almost every business, there comes a point where setting up your own server becomes the most logical choice. This decision may be driven by various factors, such as:

  • An increase in the number of visitors to your e-commerce site.
  • The need to run multiple business applications.
  • A requirement for higher uptime and reliability.
  • And various other reasons.

Renting vs. Owning a Server

When setting up your business server, you have two choices:

  1. Rent the server for a fixed monthly price from a service provider like Beehosting.
  2. Purchase a server and keep it stored in your office.

Both approaches have their own set of advantages and disadvantages. Let’s delve into each of them, so you can make an informed decision on which route might be more suitable for your business.

Owning a Server

Acquiring, assembling, and installing a server on your commercial premises offers several advantages, including enhanced reliability, customized security, and high performance.

However, it is essential to acknowledge that there are considerable expenses involved in procuring, setting up, and maintaining the server. These costs can add up significantly, making it crucial to seek expert IT consultations before committing to a dedicated server. This step is often the wisest course of action to ensure the best outcome for your business.


  • You only need to make one significant upfront payment, and the hardware can be utilized until it becomes obsolete.
  • Physical access to the hard drives, enables you to store information offline.


  • There are supplementary costs for power, cooling, and networking.
  • Typically, there is no redundancy available for power and networking.
  • There is no security or fire suppression system in place to safeguard server data.
  • There are expenses related to hardware repair and replacement.
  • The server hardware itself must be considered.
  • In the event of hardware breakdown, you bear the entire cost of replacement or repair.
  • There are no additional security measures in place to protect your server data.
  • You will need to seek assistance from IT professionals for installation and maintenance.

Renting a server

Renting a server involves leasing a bare metal or virtual server from a third-party data center. The user pays a monthly or annual fee for the hardware, while the hosting provider assumes most of the server-related responsibilities.


  • You pay a single fixed monthly price, covering hardware, cooling, power, security, and 24×7 support.
  • You have access to the latest hardware and the flexibility to migrate to a new server whenever hardware improvements are available.
  • Benefit from 24×7 onsite support to assist with any server-related issues.
  • No worries about hardware replacement costs as any failed components will be promptly replaced.
  • Enjoy redundant power, networking, and security features that are not feasible in an office environment.
  • Experience reduced hardware costs.


  • You do not have direct physical access to the stored data on your server.
  • As you don’t truly own your server, there is a sense of limited ownership involved.

How much does it cost to have a server

Purchasing a server for your business can cost you anywhere between $1000 to $2500. Setting it up properly requires careful consideration of several factors.

You need to take into account core hardware components such as the CPU, hard drives, memory (ECC RAM), chassis, processor, motherboard, and power supply. Additionally, you should consider the operating system and other server-related software.

Furthermore, you must factor in costs for additional server maintenance and replacements, power and cooling, as well as hardware and software support.

Server Cost Breakdown 

  • CPU – typically around $900
  • Hard drive – usually hovers around $250, which may vary based on the drive’s size and speed.
  • RAM – around $350 for 64 GB
  • Power supply – around $100
  • Software
    • Operating system
      • Windows Server OS – $500 – $4,000 per server
      • Linux – free
    • Applications/add-ons
      • SQL – $900
      • Exchange – $700 – $4,000
      • SharePoint – $400 – $3,000
      • Citrix – $400 – $3,000

The average cost to rent a small business dedicated server ranges at Beehosting starts from $40 per month. Alternatively, you can set up a cloud server starting at $5 per month.

The cost of a server will be determined by the specific requirements for CPU, bandwidth, disk space, and memory. Additionally, other factors such as RAID, DDoS protection, and the type of hard drive used in the cloud server or dedicated server also play a role in the overall cost.


Regrettably, there is no one-size-fits-all answer when it comes to determining how much a server costs. Each business has its distinct requirements and server needs.

The optimal approach is to collaborate with professionals who can assist you in identifying the right server for your business, encompassing all the necessary features and staying within your budget.

If you require further information on purchasing a server for your small business, please feel free to contact our support team. We are here to ensure that your business operations run seamlessly.